YUTO TECH.(002831) Guotai Junan Securities·2024-04-28 02:32Investment Rating - The report maintains a rating of "Buy" for Yutong Technology (002831) with a target price of 32.90, down from the previous target of 35.50 [1][2]. Core Views - The company demonstrates stable performance with long-term investment value highlighted. The global production capacity layout is nearly complete, focusing on capital efficiency and shareholder returns, with a dividend yield of 3.4% [1][2]. - The report adjusts profit expectations due to the introduction cycle of new clients, projecting earnings per share (EPS) for 2024-2026 at 1.97, 2.17, and 2.56 respectively [1][2]. - Revenue growth is expected to turn positive in 2024, benefiting from overall economic recovery, with significant rebounds in revenue across various business segments [1][2]. Financial Summary - The company’s revenue for 2023 is projected at 15,223 million, with a growth forecast to 18,282 million in 2024 and 21,043 million in 2025 [2]. - Operating profit (EBIT) is expected to increase from 1,902 million in 2023 to 2,442 million in 2024, reflecting a growth rate of 20% [2]. - Net profit attributable to shareholders is forecasted to rise from 1,438 million in 2023 to 1,787 million in 2024, indicating a growth of 28% [2]. Profitability and Valuation Metrics - The report indicates an improvement in operating profit margin from 12.5% in 2023 to 13.4% in 2024, with net profit margin also expected to improve [2]. - The price-to-earnings (PE) ratio is projected to decrease from 17.02 in 2023 to 13.70 in 2024, suggesting a more attractive valuation [2]. - The return on equity (ROE) is expected to stabilize around 14.4% in 2024, reflecting the company's ability to generate profit from shareholders' equity [2].