Core Viewpoint - Haitong International forecasts significant revenue and profit growth for Tsunami Machine Tool China from FY2026 to FY2028, with a target price of HKD 46.94 based on a 15x P/E ratio for FY2026, and an "Outperform" rating assigned for the first coverage [1]. Group 1: Financial Projections - Expected revenues for Tsunami Machine Tool China are projected to be CNY 54.39 billion, CNY 69.84 billion, and CNY 86.01 billion for FY2026, FY2027, and FY2028 respectively [1]. - Forecasted net profits attributable to shareholders are CNY 10.53 billion, CNY 11.32 billion, and CNY 15.89 billion for the same fiscal years [1]. - Earnings per share are anticipated to be CNY 2.8, CNY 3.49, and CNY 4.23 for FY2026, FY2027, and FY2028 respectively [1]. Group 2: Business Performance - The company has experienced rapid growth in the past two years, with a net profit of CNY 4.79 billion in FY2024 and a projected increase of 63% to CNY 7.82 billion in FY2025 [1]. - Sales revenue increased by approximately 26.2% year-on-year, while net profit attributable to shareholders grew by about 47.7% year-on-year in the last six months [1]. - The main business focuses on four downstream industries: automotive parts, IT communications electronics, industrial automation, and medical devices, with the automotive sector being the primary growth driver over the past two years [1]. Group 3: Market Trends - The domestic automotive industry is expected to maintain stability this year, with the trend of miniaturization in new energy vehicle components aiding the company's penetration rate [2]. - The 3C industry is showing signs of recovery, benefiting from product updates and iterations by leading smartphone manufacturers [1][2]. - The company’s lathe business is projected to achieve stable growth of 20% to 25% driven by advancements in automotive-related and new AI business sectors [2].
海通国际：首次覆盖津上机床中国(01651)予“优于大市”评级 目标价46.94港元