CSB(300718) 中泰证券·2024-09-06 04:08Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company's revenue and profitability are expected to grow steadily, with revenue projected to increase from 1,071 million yuan in 2022 to 1,729 million yuan in 2026, representing a compound annual growth rate (CAGR) of 12.7% [1] - Net profit attributable to the parent company is forecasted to rise from 102 million yuan in 2022 to 439 million yuan in 2026, with a CAGR of 44.0% [1] - The company's self-lubricating bearings business is expected to benefit from the steady growth of the sliding bearings industry, which has seen its market size increase from 10.5 billion yuan in 2017 to 16.5 billion yuan in 2022 [4] - The company is actively expanding into new areas such as humanoid robots and ball screws, which are expected to become new growth drivers [4][5] Financial Performance - In H1 2024, the company achieved revenue of 560 million yuan, up 4.1% YoY, and net profit attributable to the parent company of 120 million yuan, down 2.6% YoY [2] - In Q2 2024, the company's gross margin was 37.2%, up 2.1 percentage points YoY and 2.9 percentage points QoQ, while the net margin was 23.2%, down 1.6 percentage points YoY but up 4.0 percentage points QoQ [3] - The company's ROE is expected to increase from 7.0% in 2022 to 17.1% in 2026, reflecting improving profitability [1] Industry and Market Position - The company is a leading domestic manufacturer of self-lubricating bearings, with its products widely used in automotive applications such as transmissions, seats, axles, hinges, engines, steering systems, and shock absorbers [4] - The company has a relatively low market share in the automotive sector but is expected to benefit from the trend of domestic substitution and the shift of the automotive supply chain to China [4] - The company is collaborating with leading humanoid robot manufacturers such as Unitree Technology to develop sliding bearings for robotic joints, which could open up new growth opportunities [4][5] Valuation and Forecasts - The company's P/E ratio is expected to decline from 40.0x in 2022 to 9.3x in 2026, reflecting strong earnings growth [1] - The company's P/B ratio is forecasted to decrease from 3.0x in 2022 to 1.7x in 2026, indicating improving valuation attractiveness [1] - The company's EPS is projected to grow from 0.34 yuan in 2022 to 1.47 yuan in 2026, driven by robust profit growth [1] Strategic Initiatives - The company is pursuing a strategy of "expanding product categories, expanding customer base, and expanding production capacity" since 2019, which has enabled it to enter new markets such as nuclear power and wind power [5] - The company is actively developing new products such as ball screws, which have applications in CNC machine tools, automotive, and humanoid robots, and are expected to become a new highlight business [5]