XCC(SH:603667) Soochow Securities·2025-03-04 19:01Investment Rating - The report maintains an "Accumulate" rating for the company [1] Core Views - The company is a leader in precision manufacturing with a strong global presence and has shown a long-term growth trend despite short-term performance pressures [2][17] - The company is strategically positioned in the screw rod sector, which is expected to benefit from the industrialization of humanoid robots [3][38] - The company has a solid financial outlook with projected net profits increasing from 1.31 billion to 2.00 billion CNY from 2024 to 2026, with corresponding P/E ratios decreasing from 126 to 83 [3][50] Summary by Sections Company Overview - The company, formerly known as Wuzhou Industry, was established in 1999 and rebranded in 2002. It focuses on bearing production and has achieved significant growth through capital market support since its IPO in 2016 [2][13] - The company has developed a comprehensive manufacturing chain that includes precision forging, pipe manufacturing, machining, and assembly, with products sold in various international markets [13][14] Performance Analysis - In the first three quarters of 2024, the company reported a revenue of 2.47 billion CNY, a decrease of 1.8% year-on-year, and a net profit of 98 million CNY, down 20% year-on-year, primarily due to adverse macroeconomic conditions [17][21] - From 2018 to 2023, the company's revenue grew from 1.37 billion to 3.11 billion CNY, with a CAGR of 17.7%, and net profit increased from 102 million to 138 million CNY, with a CAGR of 6.2% [17][21] Strategic Initiatives - The company is focusing on the screw rod market, which is crucial for humanoid robots, and has made significant investments in R&D and production capacity [3][41] - A total investment of 15 billion CNY is planned for the development of planetary roller screws and other related products, indicating a strong commitment to expanding its capabilities in this area [3][41] Financial Projections - The company forecasts net profits of 1.31 billion, 1.71 billion, and 2.00 billion CNY for 2024, 2025, and 2026, respectively, with a corresponding decrease in P/E ratios [3][50] - The report highlights the company's competitive edge in screw rod production and its favorable valuation compared to peers in the automotive parts sector [3][50]