GKG(SZ:301338) Tianfeng Securities·2024-08-15 13:00Investment Rating - The report gives an "Accumulate" rating for the company with a target price of 34.84 CNY per share, based on a PEG ratio of 1.15 for 2024 [1][3]. Core Insights - The company, Kaige Precision Machinery, is recognized as a leader in electronic assembly equipment, with significant growth driven by its packaging equipment and breakthroughs in LED packaging [1][2]. - The company has seen a substantial increase in revenue from its LED packaging equipment, which grew by 263.95%, and is actively expanding its semiconductor packaging business [1][2]. - Financial forecasts predict net profits of 75 million CNY, 92 million CNY, and 154 million CNY for 2024, 2025, and 2026 respectively, indicating a strong growth trajectory [1][2]. Summary by Sections Company Overview - Kaige Precision Machinery has focused on the research, production, and sales of automation precision equipment since 2006, achieving various certifications from major clients like Foxconn and Huawei [9][10]. - The main products include solder paste printing equipment, dispensing equipment, packaging equipment, and flexible automation equipment, which are widely used in various industries such as consumer electronics and automotive electronics [10][12]. Financial Data - The company reported a revenue of 740.02 million CNY in 2023, a decrease of 5.04% from the previous year, but is expected to rebound significantly in 2024 with a projected revenue of 990.67 million CNY, reflecting a growth rate of 33.87% [2][19]. - The revenue composition shows that solder paste printing equipment accounted for 54.27% of total revenue, while packaging equipment contributed 29% in 2023 [14][15]. Industry Dynamics - The electronic assembly industry is driven by growth in downstream markets, particularly in automotive electronics and the integration of AI in consumer products, which is expected to boost demand for electronic assembly equipment [2][26]. - The company has achieved import substitution in solder paste printing equipment, reaching performance levels that surpass international competitors, thus enhancing its market position [2][26].