KDL(SZ:002850) Guolian Securities·2024-07-10 03:00Investment Rating - The report maintains a "Buy" rating for the company, citing its leadership in the lithium battery precision structural components industry [7]. Core Viewpoints - The company has established itself as a leader in the precision structural components industry, focusing on lithium battery components and automotive structural parts, with a strong growth trajectory supported by technological and customer advantages [2][12]. - The report anticipates significant growth in the global precision structural components market, driven by the demand for new energy vehicles and policy support, with projected market sizes of 51.5 billion, 59.7 billion, and 70.4 billion yuan from 2024 to 2026, representing a CAGR of 19% [4]. - The company is expected to benefit from its technological advancements, customer relationships, and management efficiency, leading to improved profitability despite industry challenges [5][6]. Summary by Sections Company Overview - The company has been a pioneer in the domestic precision structural components industry, with a focus on lithium battery components since its inception [19]. - It has expanded its product offerings to cover various types of battery structures, including cylindrical and square batteries, and has established a strong customer base [26][30]. Market Dynamics - The demand for precision structural components is expected to rise due to the ongoing growth in new energy vehicle sales, with a reported 32.5% year-on-year increase in sales in the first five months of 2024 [37]. - The report highlights the favorable policies supporting the growth of the lithium battery market, including subsidies for new energy vehicles and tax exemptions [40][41]. Financial Projections - The company is projected to achieve revenues of 13.136 billion, 15.888 billion, and 19.176 billion yuan from 2024 to 2026, with year-on-year growth rates of 24.97%, 20.95%, and 20.70% respectively [7][15]. - Net profits are expected to reach 1.435 billion, 1.730 billion, and 2.113 billion yuan over the same period, with corresponding growth rates of 19.47%, 20.60%, and 22.14% [7][15].