Zhejiang Jiecang Linear Motion Technology (603583) 华鑫证券·2025-02-23 01:33Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook for its stock performance in the next 12 months [13]. Core Insights - The company is a leading player in the linear drive industry and is expanding into humanoid robotics, which is expected to drive its second growth phase [4][11]. - The linear drive market is experiencing steady growth, with the global market size reaching approximately 151.9 billion yuan in 2023, reflecting a year-on-year increase of 5.9% [7]. - The company has a strong global presence, with production bases in the US, Malaysia, Czech Republic, and Hungary, enhancing its ability to meet international demand [10]. Summary by Sections Company Overview - The company has been deeply involved in the linear drive sector for over 20 years and holds the largest market share in the office furniture segment globally [4]. - It has established subsidiaries and production bases across Asia-Pacific, Europe, and America, contributing to its global market leadership [4][10]. Financial Performance - Revenue from 2020 to 2023 was 1.87 billion, 2.64 billion, 3.01 billion, and 3.03 billion yuan, respectively, with a compound annual growth rate (CAGR) of 17.5% [5]. - The gross profit margin has remained relatively high, with figures of 39.3%, 27.0%, 26.9%, and 29.2% for the same period [5]. - The net profit attributable to the parent company for 2020-2023 was 410 million, 270 million, 330 million, and 210 million yuan, showing fluctuations due to various factors including tariffs and operational costs [5]. Market Opportunities - The linear drive market is expanding into various applications, including smart office systems, medical care, smart home control, industrial automation, and automotive intelligence [6][8][9]. - The smart office segment, particularly height-adjustable desks, is projected to grow significantly, with a market size of approximately 24 billion yuan in China by 2024, reflecting a CAGR of 22.4% from 2021 to 2024 [7]. - The medical care sector is also expected to see growth, with the linear drive market in medical devices projected to reach about 235 billion yuan globally by 2024 [8]. Strategic Initiatives - The company has recently entered the humanoid robotics sector by co-founding a robotics company focused on developing key components such as joint modules and dexterous hands [11][12]. - This strategic move is anticipated to leverage the company's existing expertise in linear drives, positioning it as a leader in the robotics market [12]. Profit Forecast - Revenue projections for 2024, 2025, and 2026 are 3.67 billion, 4.42 billion, and 5.36 billion yuan, respectively, with corresponding earnings per share (EPS) of 1.1, 1.4, and 1.7 yuan [13][15].