宗申动力：深度报告：主业复苏，“低空”启航

Investment Rating - The report initiates coverage with a "Buy" rating for the company [2]. Core Views - The company is a leading player in the domestic engine and general machinery industry, with comparable companies having an average PE of 10.70X for 2024. The company is expected to enjoy a premium due to its excellent quality, competitive strength, and promising new business prospects [2]. - Projected total revenue for 2024-2026 is estimated at 9.742 billion, 11.160 billion, and 12.395 billion yuan, with net profits of 633 million, 708 million, and 796 million yuan respectively. The average compound annual growth rates (CAGR) for total revenue and net profit over the next three years are expected to be 15.00% and 30.0% respectively [2]. Summary by Sections Company Overview - The company has over 40 years of experience in the general machinery sector and has become a dominant player in the industry. Its products are widely used in well-known drones and by major brands in the fuel and new energy vehicle sectors [14][27]. Financial Performance - From 2003 to 2023, the company's total revenue grew from 993 million to 8.151 billion yuan, with a CAGR of approximately 11.1%. The net profit increased from 43 million to 362 million yuan during the same period, with a CAGR of 11.2% [59][62]. Business Segments - The company's revenue composition as of 2023 includes 41.97% from engine products, 48.22% from general machinery, and 5.91% from component products [59]. - The motorcycle engine segment is experiencing significant growth, with a focus on larger displacement engines, which are becoming the mainstay of the market. The company holds a 17% market share in the motorcycle engine segment [66][70]. Market Trends - The motorcycle market shows a robust growth trajectory, with new motorcycle registrations increasing at a CAGR of 13.29% from 2017 to 2023. The production and sales of motorcycles in 2023 were 19.41 million and 18.99 million units respectively, reflecting a stable market [40][41]. Strategic Developments - The company has been actively expanding its product offerings and market reach, including a focus on new energy solutions and strategic acquisitions to enhance its competitive edge [56][68].