IECHO(688092) 信达证券·2024-07-10 09:30Investment Rating - The report assigns a "Buy" rating to the company [2][4][156]. Core Views - The company, Aike Technology, specializes in the intelligent cutting equipment sector, showing significant growth potential due to its innovative products and strong market demand [4][20][28]. - In 2023, the company achieved revenues of 384 million yuan and a net profit of 75.3 million yuan, reflecting year-on-year growth of 29.3% and 65.9% respectively [4][28]. - The intelligent cutting equipment market is expected to grow as industries transition from traditional manual cutting to automated solutions, driven by labor cost increases and aging populations [20][46][173]. Summary by Sections Company Overview - Aike Technology was established in 2005 and has developed a comprehensive range of intelligent cutting equipment and software solutions for various industries, including textiles, automotive interiors, and advertising [4][9][20]. - The company has a total share capital of 83 million shares, with 100% of A-shares in circulation [4]. Financial Performance - The company’s revenue has grown from 176 million yuan in 2017 to 384 million yuan in 2023, with a compound annual growth rate (CAGR) of 13.83% [28]. - The net profit increased from 30.42 million yuan in 2017 to 75.3 million yuan in 2023, with a CAGR of 16.31% [28]. - The projected revenues for 2024, 2025, and 2026 are 498 million yuan, 641 million yuan, and 818 million yuan, respectively, with year-on-year growth rates of 29.8%, 28.7%, and 27.5% [4][154]. Market Analysis - The penetration of intelligent cutting equipment in developing countries remains low, but industry upgrades and policy support are expected to enhance market penetration [20][46]. - The global market for intelligent cutting equipment is anticipated to grow, particularly in sectors such as textiles and composites, driven by technological advancements and increased demand for automation [20][46][71]. Competitive Position - Aike Technology's products are competitive in terms of price and performance compared to both domestic and international peers, with a focus on high-quality manufacturing and innovative technology [4][6][106]. - The company is expanding its product matrix with new offerings such as the GL series, LCT laser die-cutting machine, and MCT flexible blade die-cutting machine, which cater to diverse market needs [4][91][92]. Management and Strategy - The management team has extensive experience, with key executives having over nine years in the company, contributing to stable leadership and strategic direction [24][25]. - The company is enhancing its sales channels, transitioning from direct sales to a more diversified distribution model to increase market coverage [97][120]. Investment Outlook - The report forecasts strong growth for Aike Technology, with expected net profits of 101 million yuan, 136 million yuan, and 181 million yuan for 2024, 2025, and 2026, respectively [154][156]. - The current valuation of Aike Technology is below that of comparable companies, indicating potential for valuation recovery [156].