WTJX(830839) 申万宏源·2024-11-26 04:54Investment Rating - The report initiates coverage with a "Buy" rating for the company [6][12]. Core Views - The company, established in July 2004, has deep expertise in hydraulic cylinders and is recognized as a "little giant" enterprise specializing in niche markets. Its main products include hydraulic cylinders for dump trucks, machinery, and gas springs, with significant revenue contributions from each category [3][4]. - The gas suspension market presents a potential space worth billions, with the company entering a high-growth phase. The gas suspension system offers advantages over traditional systems, and the company has established a leading position in technology and application [4][5]. - The company is actively expanding its electric cylinder product line, which is expected to become a new growth point in various advanced fields [5][6]. Summary by Sections 1. Company Overview - The company has been focused on hydraulic cylinders for 20 years, with a diversified product portfolio and stable partnerships with well-known clients in various industries, including military and mining [3][4]. - The company has a strong control structure with the founder holding a significant stake, ensuring stable governance and execution [39]. 2. Gas Suspension Growth - The gas suspension system is gaining traction, transitioning from military applications to commercial vehicles, with the company leading in this technology [4][50]. - The revenue from gas springs has shown remarkable growth, with projections indicating continued expansion in the heavy-duty vehicle market [4][5]. 3. Traditional Business Performance - The company’s traditional hydraulic cylinder business is recovering, supported by favorable fiscal policies and overseas market expansion, which is enhancing profit margins [5][6]. - The company has seen a shift in revenue sources, with a notable increase in overseas sales contributing to overall profitability [5][6]. 4. Electric Cylinder Development - The electric cylinder segment is being developed for applications in precision machinery, robotics, and other advanced fields, with the company making significant progress in R&D [5][6]. - The company aims to leverage its military technology for civilian applications, positioning itself for future growth in this area [5][6]. 5. Financial Projections - The company is projected to achieve revenues of 633 million, 777 million, and 910 million yuan for 2024, 2025, and 2026, respectively, with net profits expected to grow correspondingly [6][12].