Jinwu Financial News | According to Tianfeng Securities Research Report, Yuyuan Group (00551)'s FY24Q1 revenue was US$2.04 billion, down 4.9%; net profit to mother was US$100 million, up 96.9%; FY24Q1 Group's gross profit margin was 25.1%, up 1.5pct; and operating profit margin was 7.3%, up 3.2pct. The FY24Q1 manufacturing business revenue was US$1,254 million, a decrease of 0.1%; the gross profit margin was 20.3%, an increase of 3.4 pct, mainly due to a significant increase in capacity utilization, flexible scheduling of production capacity, cost reduction and efficiency. Optimization strategies and industry trends drive unit price changes; capacity utilization rate 88%, same increase of 16 pcts.
According to the bank, the company focuses on medium- to long-term capacity layout strategies, promotes manpower and capacity improvement plans, further enhances management resilience, creates a highly agile and flexible operating model to improve production efficiency, makes good use of core strengths, adjustment capabilities and competitive advantages, and is complemented by cost and expense control to stabilize profitability. The bank expects the company's 24-26 revenue to be US$86.45/96.45/US$10.935 billion, respectively, net profit to mother of US$296/3.48/US$402 million, EPS of 0.18/0.22/0.25 USD/share, respectively, and corresponding PE of 12/11/9X, respectively. Maintain a “buy” rating.