IECHO(SH:688092) Orient Securities·2024-07-25 01:01Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 24.05 CNY based on a 21x P/E ratio for 2024 [20][24][26]. Core Insights - The company is a leader in precision motion control technology, actively expanding its product offerings and enhancing its international presence. It has established a dual-driven product model with single-layer and multi-layer intelligent cutting equipment, capitalizing on the recovery of downstream industries [19][28]. - The company has a strong focus on R&D, with a stable R&D expense ratio of over 6% since 2018, totaling 85.31 million CNY in the last three years. This investment has allowed the company to overcome technical challenges and achieve competitive performance on par with international brands [19][20]. - The company has successfully increased its overseas revenue to over 50% of total income, with plans for further localization in international markets through acquisitions and establishing subsidiaries [19][20]. Financial Summary - The company's projected net profits for 2024, 2025, and 2026 are 95 million CNY, 127 million CNY, and 147 million CNY, respectively, reflecting a growth trajectory [20][27]. - Revenue is expected to grow from 384 million CNY in 2023 to 503 million CNY in 2024, with a compound annual growth rate of 31% through 2026 [27]. - The gross margin is projected to remain stable at around 43.5% to 44.0% over the next few years, indicating strong profitability [27].