Allied Machinery(SH:605060) Xin Lang Cai Jing·2025-11-21 08:29Core Viewpoint - The company is a leading player in the global commercial air conditioning compressor casting market and is strategically entering the AIDC cooling and power supply sectors, leveraging long-term partnerships with major global clients [1][4]. Group 1: Business Overview - The company has a strong foothold in the commercial air conditioning compressor casting and engineering machinery casting sectors, with over 10 years of collaboration with top clients like Johnson Controls, Ingersoll Rand, and Caterpillar [1]. - The company is expected to benefit from a compound annual growth rate (CAGR) of 12.7% in revenue and 13.3% in net profit attributable to shareholders from 2016 to 2024, indicating a robust growth trend [1]. Group 2: AIDC Market Potential - The AIDC sector is experiencing significant investment from global tech giants, with the cooling segment projected to exceed 10 billion USD in the U.S. by 2028 [2]. - The power supply segment is also expanding due to aging electrical infrastructure in the U.S., with gas turbines and diesel generators likely becoming mainstream solutions [2]. Group 3: Competitive Advantages - The company's integrated "casting + machining" capabilities provide a competitive edge, allowing for high product value and superior profitability compared to peers [3]. - The dual-core production layout in Deqing and Mexico positions the company to capture domestic and international orders while ensuring supply chain security for North American clients [3]. Group 4: Future Growth and Valuation - The company is expected to see net profits of 220 million, 300 million, and 410 million CNY from 2025 to 2027, with corresponding price-to-earnings ratios of 38, 28, and 20 times [3]. - The company has initiated a stock incentive plan to align the interests of key personnel, further strengthening its operational capabilities [3].