Kiwi Instruments(SH:688045) Huachuang Securities·2024-06-20 06:31Investment Rating - The report maintains a "Recommendation" rating for the company, indicating an expectation of outperforming the benchmark index by 10%-20% over the next six months [10][38]. Core Insights - The company has implemented a stock incentive plan, demonstrating confidence in its future growth. The first phase of the plan involves granting 3.07 million restricted stocks to 242 individuals, representing 4.45% of the total share capital, at a price of 15.00 CNY per share [10][11]. - The second phase targets core technical personnel and business backbones, with specific revenue and gross profit targets set for the years 2024-2027, reflecting the company's commitment to expanding its product offerings [11]. - The company is focusing on high-margin products and has seen steady growth in Q1 2024, with significant improvements in profitability. New product developments are progressing well, particularly in battery management systems and automotive lighting [11]. Financial Summary - Total revenue is projected to grow from 578 million CNY in 2023 to 1,113 million CNY by 2026, with a compound annual growth rate (CAGR) of approximately 22.3% [2]. - The net profit attributable to the parent company is expected to turn from a loss of 19 million CNY in 2023 to a profit of 95 million CNY in 2026, reflecting a significant recovery [2]. - Earnings per share (EPS) is forecasted to increase from -0.28 CNY in 2023 to 1.38 CNY in 2026, indicating a strong turnaround in profitability [2].