Accelerating the internationalization process, Yutong Technology plans to establish new production bases in Europe, the Middle East, the United States, and other regions
Recently, Yutong Technology released the latest institutional research information, bringing new attention to the market.
In this survey, Yutong Technology revealed its internationalization strategy for the next 2-3 years, planning to establish new production bases in regions such as Europe, the Middle East, and the United States. This measure aims to deepen the company's internationalization process and further expand its market share.
01
Yutong: Will maintain a medium to high growth rate in the next 3-5 years
Yutong Technology believes that it will maintain a medium to high growth rate in the next 3-5 years, mainly relying on the following aspects:
Internationalization layout: The company has completed its layout in Southeast Asia and Mexico, and plans to establish production bases in new markets to enhance global competitiveness.
Intelligent Manufacturing: The company has made significant investments in information technology, automation, and smart factories, with professional engineers and information technology teams that can continuously optimize production processes, reduce costs, and improve efficiency.
Environmentally friendly packaging: Although the current development speed of environmentally friendly packaging is slow, with material development and process improvement, manufacturing costs are expected to continue to decline, driving business growth.
Domestic business potential: The company collaborates with card and blind box companies, actively expanding into new consumer areas. Its subsidiary, Huabaoli, has also demonstrated strong development potential in robot OEM business.
02
Accelerate internationalization process through mergers and acquisitions
Yutong Technology plans to achieve overseas expansion and reduce localized business risks through co construction with clients or cooperation with local enterprises. At the same time, the company is also considering accelerating its internationalization process through mergers and acquisitions, but currently prioritizes smaller and more competitive enterprises.
03
Future domestic and overseas production capacity ratio 50:50
Currently, Yutong Technology's overseas production capacity accounts for 20%, and the future goal is to adjust the ratio of domestic and overseas production capacity to 50:50. In the short term, due to the increase in overseas layout, there may not be a significant improvement in profit margin, but it is expected that there will be an opportunity to further increase net profit margin in 2-3 years. The net profit margin of mature manufacturing industry is about 6%, the net profit margin of high-end manufacturing industry can reach 10%, and the net profit margin of differentiated competitive advantage enterprises may exceed 12%.
04
Overseas layout has a first mover advantage
Yutong Technology has a first mover advantage in its overseas layout, especially in its production base in Vietnam where it has already established a capacity of 3000 people. In addition, the company has established multiple intelligent factories in China, which can quickly replicate its experience overseas and stay ahead of local competitors. The company currently serves multiple international major clients and has recently received requests from multiple overseas packaging companies seeking localization cooperation.
05
Domestic business increment sources
The domestic business growth of Yutong Technology mainly comes from the heavy-duty packaging market, card and new consumer packaging, cloud innovation business and other fields. The company actively serves the automotive industry through its independently developed multi-layer corrugated paper patented technology, with the goal of leading the industry in card and new consumer packaging business.
06
Innovative business layout
In the field of environmental packaging, Yutong Technology has made positive progress, especially in functional paper plastic products and plant fiber raw materials. In addition, the company has made new progress in the fields of daily chemical packaging, toy packaging, food card boxes, and pharmaceutical packaging, and will continue to pay attention to the development of new consumption and new economy in the future.
In summary, Yutong Technology has demonstrated strong growth potential in its global market layout, promotion of intelligent manufacturing, and innovation in environmentally friendly packaging. For investors, closely monitoring the company's strategic adjustments and market performance will help them seize future investment opportunities.