Per AI Express, on December 28, 2023, Shenwan Hongyuan released a research report commenting on YUTO Technology (002831).
Investment Highlights: The company announced that it would increase the cash dividend ratio from 2023 to 2025. The company announced that if there is no major investment plan or major cash expenditure and other events, the profit distributed in cash each year from 2023 to 2025 will not be less than 60% of the net profit attributable to the parent company in the current year. In addition, in 2023, the company will pay its first interim dividend, with a total cash dividend of about 300 million yuan.
With the decline in capital expenditure, the dividend ratio increased;The company's dividend yield has increased, and the investment value has been highlighted. From 2020 to 2022, the company's cash dividend ratio is00% and 2014%, the dividend ratio of this announcement is not less than 60%, far exceeding the historical average. With the basic formation of the company's global layout, the capital expenditure has entered a downward cycle, with the company's capital expenditure CAGR reaching 21% from 2015 to 2021, and the capital expenditure in 2022 23H1 year-on-year being -13% and -24% respectivelyIn 2022 23H1, the company's net cash flow from operating activities was 2621/23.1.5 billion yuan, +124% +88% year-on-year, capital expenditure fell, cash flow was abundant, supporting the realization of dividends. According to the 2023-2024 dividend ratio of 60% and 60%, the company's dividend yield in 2023-2024 will be 38%/4.6%, the investment value is highlighted.
The main business has growth attributes, and it will be repaired with the recovery of terminal demandThe coverage rate of smart factories has been improved, the quality of operation has been continuously optimized, and the production capacity has a first-mover advantage in going overseas
1) Consumer electronics: The prosperity of the industrial chain has been gradually restored, and the advantages of global layout have been highlighted. H2 is the traditional peak season for consumer electronics, according to the announcement of Sunny Optical Technology, the shipments of mobile phone lenses from July to September 2023 will be 73%/17.0%/16.9%, and the shipments of mobile phone camera modules were 48 year-on-year3%/36.8%/41.4%, the prosperity of the industrial chain is gradually repairing. With the gradual rise of the demand for the transfer of international consumer electronics customers, the company's advantages in taking the lead in laying out manufacturing bases in Southeast Asia and South Asia are highlighted. The company's share in major customers is stable, intelligent transformation ensures the highest efficiency in the industry, and global layout ensures timely and stable supplyThe follow-up revenue growth rate will be restored with the recovery of the track prosperity.
2) Environmental protection paper and plastic: product research and development is promoted, the expansion of customers is smooth, and the prosperity is still highThe 23H2 capacity utilization rate increased, driving the recovery of gross profit margin. With the recovery of the 3C boom, the meal package business has continued to prosper with the substantial implementation of the "plastic ban" at home and abroad, and the company's customer expansion has been smooth. On the product side, we continue to develop new environmentally friendly materials and new products, such as all-plant fiber environmentally friendly cat litter products, etc., and continue to expand customers in new fields. On the profit side, with the increase in revenue, the increase in capacity utilization, and the increase in the proportion of high-margin meal packages, the gross profit margin is expected to be restored.
3) Tobacco and alcohol packaging: the degree of marketization of bidding has improved, the supply-side pattern has changed, and the company has seized the opportunity to cut in, which is becoming a new growth curve. From a medium and long-term perspective, the improvement of the marketization of bidding is a definite trend, and the company is expected to continue to increase its market share with strong customer service capabilities, product iteration speed and design capabilities. In the short term, the revenue growth rate is disturbed by the progress of customer expansion and the customer's own dynamic sales, and the wine bag is affected by the sluggish terminal consumption and customer destocking, and the short-term revenue performance is poorIn the past two years, the winning situation of cigarette bids has been good, and the company has added new customers of Guangxi China Tobacco, and it is expected that the revenue side will perform well in the next two years.
Factors such as the improvement of the coverage rate of smart factories and the increase in the utilization rate of environmentally friendly paper and plastic production capacity have boosted the gross profit margin and continuously optimized the operation quality. The coverage of the company's smart factories has been improved, and it has been gradually promoted from the Xuchang factory to the factories in many places such as cigarette labels and wine bags, driving cost reduction and efficiency increaseIn addition, with the product development and customer expansion of the environmentally friendly paper and plastic business, the capacity utilization rate has been increased in an orderly manner, diluting fixed costs and driving the optimization of gross profit margin.
The main business is stable and has growth attributes, and it will be repaired in an orderly manner with the recovery of terminal demandThe company increased the dividend ratio, optimized the dividend yield, thickened the margin of safety, and highlighted the investment value. We maintain our 2023-2025 net profit attributable to the parent company** to 1556/18.63/22.1.8 billion yuan, a year-on-year increase of 46%/19.7%/19.0%, and the PE corresponding to the current market value is 16 13 11 times. In the future, we will continue to improve efficiency through close global layout, automation upgrades, and integrated delivery, and lay a profitable alpha, which still maintains the "** rating!".
Risk warning: the recovery of the consumption boom is slow, and the competition for new business is intensifying.
*: Huibo Investment Research).
Disclaimer: The content and data in this article are for reference only and do not constitute investment advice. Do so at your own risk.
Edited by Tsang Kin-fai).
National Business Daily.