Investment Rating - The report maintains a "Buy" investment rating for LK Tech (00558 HK) with a target price of HK$4.45 [2][3]. Core Insights - The overall performance of LK Tech has declined due to weak domestic demand in the die-casting business, but this has been partially offset by strong revenue growth in overseas markets. The net profit forecasts for FY2025 and FY2026 have been revised down to HK$440 million (-19.6%) and HK$499 million (-16.1%) respectively, with an introduction of a net profit forecast of HK$589 million for FY2027 [2]. - The company’s revenue for FY2024 is reported at HK$5.837 billion, a decrease of 1.0% year-on-year, with an operating profit margin down by 1.1 percentage points to 11.0%. Despite the overall poor performance, there has been an improvement compared to the first half of FY2024 [2]. - The overseas business has shown strong growth, with revenue reaching HK$1.3357 billion in FY2024, a year-on-year increase of 21.9%. Exports to Central and South America have been particularly strong, with revenue increasing by 97.7% to HK$250.5 million [2]. - The injection molding machine business has also seen significant revenue growth, increasing by 19.7% to HK$1.425 billion, driven by cyclical trends in the plastic production industry and domestic demand stimulated by government initiatives [2]. Financial Summary - For FY2023, total revenue was HK$5.896 billion with a net profit of HK$532 million and an EPS of HK$0.387. For FY2024, revenue is projected at HK$5.837 billion with a net profit of HK$484 million and an EPS of HK$0.353 [5][8]. - The forecasted revenues for FY2025, FY2026, and FY2027 are HK$6.215 billion, HK$6.593 billion, and HK$7.033 billion respectively, with corresponding net profits of HK$440 million, HK$499 million, and HK$589 million [5][8]. - The report indicates that the net profit margins for FY2025, FY2026, and FY2027 are expected to be 7.1%, 7.6%, and 8.4% respectively [2].
力劲科技：保持利润率：海外市场蕴藏更大商机