GKG(SZ:301338) Guoyuan Securities·2024-10-17 04:00Investment Rating - The report assigns an "Accumulate" rating for the company, Keg Precision Machinery (301338) [4][28]. Core Viewpoints - Keg Precision Machinery specializes in high-end precision automation equipment, particularly excelling in solder paste printing equipment, with a strong global presence and competitive edge in the electronic assembly equipment industry [1][3]. - The company has shown steady revenue growth, achieving 359 million yuan in revenue for H1 2024, a year-on-year increase of 25.05%, although net profit has decreased by 21.43% due to changes in revenue structure and reduced government subsidies [2][16]. - The global SMT market is projected to grow from 6.14 billion USD in 2024 to 8.87 billion USD by 2029, with a CAGR of 7.65%, indicating significant market opportunities for the company [3][11]. Summary by Sections 1. Company Overview - Keg Precision Machinery has been deeply involved in the electronic assembly equipment sector for 18 years, focusing on the development, production, and sales of automation equipment, particularly solder paste printing machines, which are critical in SMT and COB processes [11][12]. - The company has established a robust customer base, including major players like Foxconn, Huawei, and BYD, enhancing its industry leadership [11][12]. 2. Financial Performance - In H1 2024, the company reported a gross margin of 32.29% and a net margin of 8.03%, with a stable control over expense ratios [2][19]. - The revenue structure has shifted, with solder paste printing equipment contributing 52.91% of total revenue, while LED packaging equipment saw a significant increase of 297.96% year-on-year [18][19]. 3. Revenue and Profit Forecast - The company forecasts revenues of 917 million yuan, 1.104 billion yuan, and 1.298 billion yuan for 2024, 2025, and 2026 respectively, with corresponding net profits of 63 million yuan, 82 million yuan, and 96 million yuan [4][28]. - The expected EPS for the same period is projected to be 0.59 yuan, 0.77 yuan, and 0.90 yuan per share, with PE ratios of 51, 39, and 33 times respectively [4][28]. 4. Market Potential - The report highlights the broad market potential for electronic assembly equipment, driven by advancements in AI and increasing demand in consumer electronics, automotive electronics, and other sectors [11][15]. - The company is expanding its product matrix to include dispensing and packaging equipment, which is expected to enhance its competitive position and revenue growth [3][11]. 5. Investment Recommendation - Given the company's leading position in the electronic assembly supply chain and the growth potential in chip packaging, the report recommends an "Accumulate" rating based on its strong fundamentals and market outlook [4][28].