TOPSUN(002779) 天风证券·2024-11-07 00:30Investment Rating - The report initiates coverage with a "Buy" rating for the company, expecting a target price increase of 10%-20% over the next six months [3][51]. Core Insights - The company, a significant player in the domestic garden machinery industry, is actively expanding into the robotics sector, having established a comprehensive layout in this area by 2024 [1][10]. - The company has shown a steady increase in net profit since 2020, with a notable improvement in gross and net profit margins in recent years [1][17]. - The global garden machinery market is valued between 40 billion, with lawn mowers being the most demanded product, holding a market share of 34% [1][22]. - The company has established strong partnerships in the U.S. market, including collaborations with major retailers and an online sales strategy through Amazon starting in 2024 [1][27]. Summary by Sections Company Overview - The company was founded in 1997 and has evolved into a key manufacturer and exporter of garden machinery in China, with a focus on gasoline and lithium battery-powered products [10][14]. - The main product line includes lawn mowers, chainsaws, and hedge trimmers, with lawn mowers accounting for 53.53% of revenue in the first half of 2024 [1][14]. Traditional Business - The company has a low debt level and strong liquidity, with cash reserves of 197 million yuan in the first three quarters of 2024 [19]. - The company’s revenue has grown from 512.43 million yuan in 2022 to an estimated 858.70 million yuan in 2024, reflecting a compound annual growth rate of 30.09% [2][50]. Robotics Sector Expansion - The company has launched several robotics initiatives, including the UNICUT H1 autonomous lawn mower, which is set to begin mass production by the end of 2024 [1][34]. - A four-legged robot, the Lingrui P1, is in development, featuring advanced capabilities and expected to enter the market soon [1][35]. - The company has invested in 1X Holding AS to distribute humanoid robots in mainland China, with plans for the NEO bipedal robot to be released soon [1][37][39]. Financial Forecast - The company’s net profit is projected to reach 74 million yuan in 2024, with growth rates of 53%, 46%, and 42% expected for the years 2024 to 2026 [2][51]. - The report anticipates a significant increase in revenue from the robotic segment, with expected growth rates of 40%, 35%, and 30% for the years 2024 to 2026 [49].