ZONGSHEN POWER(001696) 民生证券·2025-02-20 10:15Investment Rating - The report initiates coverage with a "Buy" rating for the company [5] Core Views - The company is a leading player in the domestic small and medium-sized power machinery sector, with steady growth in revenue and net profit over the years [1][18] - The forecast for net profit from 2024 to 2026 shows significant growth, with expected figures of 5.58 billion, 7.05 billion, and 8.81 billion respectively, indicating year-on-year growth rates of 54.2%, 26.3%, and 24.9% [3][4] Summary by Sections Company Overview - The company specializes in the research, manufacturing, and sales of small and medium-sized power machinery products, including engines, general gasoline engines, and various machinery [1][11] - Revenue increased from 993 million to 8.151 billion from 2003 to 2023, with a CAGR of 11.11%, while net profit rose from 53 million to 372 million, with a CAGR of 10.23% [18] Traditional Business - General Machinery Business: The company has a comprehensive product range and has established a strong market presence, exporting to over 70 countries [2][30] - Motorcycle Manufacturing Business: The company has a complete product line and maintains a leading position in the domestic market, with a wide sales network [2][38] Aviation Power Business - The company has developed a product line focused on aviation piston engines under 200HP, benefiting from the low-altitude economy [3][46] - The aviation division has established a strong market presence both domestically and internationally, with a focus on light aircraft and drones [47][50] Financial Forecast and Investment Advice - The company is expected to achieve revenues of 9.573 billion, 11.218 billion, and 13.128 billion from 2024 to 2026, with corresponding growth rates of 17.4%, 17.2%, and 17.0% [4] - The report emphasizes the company's robust growth in both general power and motorcycle businesses, along with advancements in the low-altitude economy sector [3][4]