IKD(SH:600933) Southwest Securities·2024-09-11 11:11Investment Rating - The report maintains a "Buy" rating for the company with a target price of 19.44 CNY over the next six months [1]. Core Views - The company is positioned well within the automotive aluminum alloy precision die-casting industry, with significant growth potential driven by the trends of electrification and lightweighting in vehicles. The domestic automotive aluminum alloy market is expected to reach 302 billion CNY by 2026, with a CAGR of 14.4% from 2024 to 2026 [2][3]. - The company is transitioning towards producing larger components for new energy vehicles (NEVs), aiming for these products to account for over 30% of sales by 2025 and 70% by 2030, thus establishing a second growth curve [2][3]. - The company is expanding its global production capacity, with new facilities in North America, Southeast Asia, and Europe, which will enhance its local production capabilities and support future revenue growth [2][3]. Summary by Sections 1. Deepening Aluminum Alloy Precision Die-Casting - The company focuses on the research, production, and sales of aluminum alloy precision die-casting parts, primarily for automotive applications, including components for NEVs [14]. 2. Electrification and Lightweighting Trends - The average aluminum usage in vehicles is projected to increase significantly, with the domestic average expected to reach 350 kg by 2030. The company is well-positioned to benefit from this trend [2][3][43]. 3. Transition to New Energy Large Components - The company has made substantial progress in its NEV projects, with a significant portion of its sales expected to come from NEV components, particularly in the areas of body structure and battery systems [3][7]. 4. Financial Analysis - The company has shown steady revenue growth, with a projected net profit of 10.5 billion CNY in 2024, increasing to 16.8 billion CNY by 2026, reflecting a CAGR of 22.5% [7][16]. 5. Earnings Forecast and Valuation - The report forecasts a strong performance for the company, with a target price based on an 18x PE ratio for 2024, indicating confidence in its growth trajectory [7].