Eddie Precision(SH:603638)2024-10-15 09:00Investment Rating - The report indicates a positive investment outlook for the company, highlighting its strong performance and strategic partnerships [1][6]. Core Insights - The company has shown steady growth in revenue and profit, with a year-on-year increase of 21.12% in revenue and 20.15% in net profit for the first half of 2024 [2]. - The partnership with Kawasaki Heavy Industries aims to establish a joint venture focused on high-end hydraulic components, which is expected to enhance market share and competitive advantage [1][6]. - The company has successfully maintained its leadership position in the hydraulic breaker industry despite a downturn in the excavator market, showcasing resilience and operational efficiency [3][4]. Revenue and Profit Growth - For the first half of 2024, the company reported revenue of 1.386 billion yuan and net profit of 196 million yuan, continuing a trend of double-digit growth over the past two years [2]. - The operating cash flow significantly improved, reaching 146 million yuan, a 516.58% increase compared to the previous year [3]. Cost Control and Efficiency - The company has effectively managed costs, with a decrease in the expense ratio to 13.08%, down 1.62 percentage points year-on-year [2]. - Research and development expenses increased to 59.72 million yuan, reflecting a commitment to innovation and maintaining a competitive edge in high-end products [2]. Business Structure and Growth Engines - The company operates five main business segments, including hydraulic breakers, high-end hydraulic components, robotics, hard alloy tools, and new energy products [3][5]. - The traditional business segments continue to be the core revenue sources, while new segments are being developed as potential growth engines for the future [5]. Strategic Partnership - The joint venture with Kawasaki Heavy Industries, named Aisaki Precision Machinery (Suzhou) Co., Ltd., will focus on the research, production, and sales of high-end hydraulic pumps, valves, and motors [4][6]. - This collaboration is expected to leverage both companies' strengths, enhancing product competitiveness and market penetration in the hydraulic sector [6].