TOPSUN(SZ:002779) ZHESHANG SECURITIES·2024-10-29 12:23Investment Rating - The report assigns an "Accumulate" rating for the company [4]. Core Viewpoints - The company is a leading player in the garden machinery export market, particularly in the riding lawn mower segment, and has decided to develop embodied intelligence as a second core business, indicating significant future growth potential [2][3]. - The outdoor power equipment (OPE) industry is expected to experience stable long-term growth, with a projected market size of $43.5 billion by 2025 and a compound annual growth rate (CAGR) exceeding 7.0% from 2018 to 2025 [2][27]. - The company has made significant strides in expanding its market presence in North America and enhancing its product offerings, particularly in lithium battery and intelligent products [3][4]. Summary by Sections Company Overview - The company has been deeply involved in the garden machinery sector since 2000 and has developed a comprehensive product line, including various types of lawn mowers and chainsaws [12][19]. - The company has established a strong export business, with overseas sales consistently accounting for 85-90% of total revenue, primarily targeting Europe and the United States [15][16]. Industry Analysis - The OPE industry is primarily driven by demand in North America and Europe, which together account for approximately 80% of the market share [27][29]. - The transition to lithium battery-powered equipment is accelerating, with the CAGR for cordless OPE expected to be 8.8% from 2021 to 2025 [2][27]. Business Development - The company is expanding its market reach by establishing subsidiaries in Europe and the U.S., and has successfully entered major retail channels such as Home Depot and Lowe's [3][4]. - The company is also focusing on product innovation, having launched a new line of 60V lithium battery handheld products in 2023, and is preparing for the mass production of autonomous lawn mowers [3][4]. Financial Forecast and Valuation - The company is projected to achieve revenues of 928 million, 1.401 billion, and 1.664 billion yuan for the years 2024, 2025, and 2026, respectively, with year-on-year growth rates of 39%, 51%, and 19% [4][6]. - The expected net profit attributable to shareholders for the same period is forecasted to be 79 million, 136 million, and 163 million yuan, reflecting significant growth potential [4][6].