For the first time, Citi rated Yageo, a major manufacturer of passive components, as a "buy", with a target price of 815 yuan, encouraging its stock price to rise, and at the end of the 12th, it hit a new high price in more than 33 months with **5 yuan to 619 yuan**, and it is still 31 from the highest target price in the near future6% upside.
After Yageo merged into the high-end industrial sensors division of Schneider Electric in France, Yageo's monthly revenue rose to 93500 million yuan, a monthly increase of 32%, down 6 percent year-on-year5%, the second highest this year.
After the revenue was announced, foreign Citigroup and Morgan Stanley released their latest reports, and Citi rated Yageo as a "buy" for the first time, with a target price of 815 yuanDa Mo also reiterated its "better than" rating with a target price of 640 yuan.
Citi pointed out that Yageo's entry into the high-end market through mergers and acquisitions, including automotive, industrial, tantalum, magnetics, etc., allows it to avoid the cyclical and volatile impact of passive components, and its diversified and comprehensive product portfolio is also conducive to the promotion of stable sales and earnings growth and the expansion of profit margins
Notable acquisitions in recent years include Pulse, Kemet, Heraeus Nexensos GmbH and Schneider Electric's Telemecanique Sensors.
These acquisitions not only help drive sales growth and margin stability, but also expand Yageo's product portfolio and customer base, which has reached 70-75% of total revenue as of the third quarter of this year, a significant increase from less than 30% prior to 2018.
Citi pointed out that Yageo's portfolio shift to the high-end market is expected to continue, which will drive its stable sales growth, margins and stable earningsIn terms of passive components, it is believed that the recovery of PCs, smartphones, server industries, and other consumer-related equipment should help improve capacity utilization, thereby stabilizing its pricing and profit margin from 2024 to 2025, so it is rated as a "buy" for the first time, with a target price of 815 yuan.
Da Mo also said that with the integration of Yageo and France's Schneider Electric High-end Industrial Sensor Division, it is believed that Yageo's revenue in the fourth quarter is expected to be flat or slightly higher, and the gross profit margin and operating profit margin should also show an upward trend.
In addition, the cumulative consolidated revenue of Global Crystal in the first 11 months was 6421.7 billion yuan, down 003％。
Xu Xiulan, chairman of Global Crystal, said that the silicon wafer industry has begun to see good signs from the client, including declining inventories and increasing revenues, which means that the downstream demand of customers has rebounded.