KEDE Numerical (SH:688305) Guotai Junan Securities·2024-10-31 10:42Investment Rating - The investment rating for the company is "Buy" [4]. Core Views - The company's performance for the first three quarters of 2024 is in line with expectations, with a focus on the subsequent pace of capacity release [3]. - The target price has been adjusted to 90.24 CNY, based on a 45x PE ratio for 2025, reflecting the company's status as a leader in five-axis machine tools and its scarcity in the market [3]. - The company achieved revenue of 381 million CNY, a year-on-year increase of 30.31%, and a net profit attributable to shareholders of 72 million CNY, up 11.53% year-on-year [3]. - The company has seen a significant increase in orders due to strong market demand for five-axis CNC machine tools [3]. Financial Summary - Revenue for 2024 is projected to be 613 million CNY, with a growth rate of 35.4% [9]. - The net profit attributable to shareholders is expected to reach 131 million CNY in 2024, reflecting a growth of 28.1% [9]. - The EPS for 2024 is forecasted at 1.28 CNY, with subsequent years projected at 2.01 CNY for 2025 and 2.65 CNY for 2026 [9]. - The company maintains a gross margin of 42.67% and a net margin of 18.90% for the first three quarters of 2024 [3]. Operational Insights - The company has implemented effective cost control measures, resulting in a decrease in sales, management, and R&D expense ratios compared to the previous year [3]. - A stock incentive plan has been introduced to attract and retain talent, indicating management's confidence in the company's long-term development [3]. - The company is accelerating capacity release with ongoing construction of three fundraising projects, which will support order fulfillment [3].