Yangjie Technology(300373) 浦银国际·2025-04-01 09:56Investment Rating - The report maintains a "Buy" rating for the company, Yangjie Technology, with a target price raised to RMB 55.7, indicating a potential upside of 20% from the current price of RMB 46.3 [2][8]. Core Insights - Yangjie Technology is expected to continue its growth momentum into 2025, following a trend of improving revenue, gross margin, and net profit throughout 2024, outperforming the overall power industry [2][3]. - Despite a temporary adjustment in demand for new energy sources like photovoltaics, strong growth is anticipated in automotive electronics, consumer sectors, and overseas markets, supported by national policies and market recovery [2][3]. - The company plans to acquire Dongguan Better to enhance its product lineup in circuit protection components, which is expected to contribute to long-term growth in automotive electronics, AI servers, and international markets [2][3]. Financial Performance and Forecast - In Q4 2024, Yangjie Technology achieved revenue of RMB 1.61 billion, a year-on-year increase of 18%, with a gross margin of 38.7%, marking a significant improvement [3][14]. - The company’s net profit for Q4 2024 was RMB 330 million, reflecting an 8% year-on-year growth and a 35% increase from the previous quarter [3][14]. - The financial projections for 2025 estimate revenue of RMB 7.01 billion, a 16% increase from 2024, with net profit expected to reach RMB 1.23 billion, representing a 23% growth [5][15]. Valuation - The report employs a DCF valuation method, assuming a risk-free rate of 1.8% and a growth rate of 15% for 2030-2034, resulting in a target price of RMB 55.7 [4]. - The current price-to-earnings ratio for Yangjie Technology is noted at 20.6x, which is considered attractive compared to historical averages [4][20].