RADICAL(SZ:300652) Xin Lang Cai Jing·2025-05-28 10:41Core Viewpoint - The company reported a slight decline in net profit for 2024 but anticipates growth in Q1 2025, driven by revenue increases across various product lines and strategic acquisitions in the precision machinery sector [1][3][4]. Financial Performance - In 2024, the company achieved operating revenue of 740 million yuan, a year-on-year increase of 13.53%, with a net profit of 120 million yuan, a slight decline of 0.18% [1] - For Q1 2025, the company reported operating revenue of 186 million yuan, a year-on-year growth of 23.55%, and a net profit of 34.94 million yuan, up 6.22% [1] - The gross profit margin for 2024 was approximately 31.61%, down 0.41 percentage points year-on-year, while the net profit margin was 16.24%, down 2.23 percentage points [2][3]. Product Performance - Revenue from the hub unit in 2024 was 264 million yuan, up 14.35%, accounting for 35.64% of total revenue; cone bearings generated 126 million yuan, up 5.85%, with a 17.06% revenue share; separation bearings saw a decline of 9.33% to 105 million yuan, with a 14.18% share; hub bearings increased by 16.68% to 138 million yuan, representing 18.59%; and tension wheels generated 51.16 million yuan, up 15.99%, with a 6.91% share [1]. Cost and Expenses - The company’s expense ratio for 2024 was 13.03%, an increase of 0.92 percentage points year-on-year, with specific increases in management and R&D expenses [3]. Strategic Acquisitions - The company signed an agreement to acquire 51% of Tongzhan Precision Technology, aiming to enhance its capabilities in the micro-screw and precision linear module markets, thereby extending its industrial chain and improving competitiveness [3]. Market Outlook - The domestic market for hub units and reducer bearings is projected to reach approximately 104.2 billion yuan by 2026, with the new energy vehicle front-end market expected to grow to around 10 billion yuan [4]. - The company is positioned to benefit from industry growth and domestic substitution, with a market share in the new energy vehicle hub unit and reducer bearing front-end market expected to exceed 20% post-capacity ramp-up [4]. Profit Forecast and Valuation - Revenue projections for 2025-2027 are 1.05 billion, 1.48 billion, and 1.74 billion yuan, with year-on-year growth rates of 42%, 41%, and 17%, respectively [5]. - Net profit forecasts for the same period are 128 million, 147 million, and 154 million yuan, with corresponding growth rates of 7%, 15%, and 4% [5].