IKD(600933)2025-04-02 09:16Investment Rating - The report maintains a "Buy" rating for the company, with an updated target price of 19.67 CNY, corresponding to an 18x PE for 2025E [3][5]. Core Insights - The company's total revenue for 2024 is projected to increase by 13.2% year-on-year to 6.75 billion CNY, while the net profit attributable to shareholders is expected to rise by 2.9% to 940 million CNY. However, the fourth quarter of 2024 showed lower-than-expected performance, with revenue of 1.77 billion CNY and a net profit of 200 million CNY, reflecting a significant decline compared to the previous year [1][3]. - The company is advancing its globalization strategy, with new factories in Mexico and Malaysia to mitigate tariff risks. The Mexico plant has already turned profitable, and the Malaysian plant is set to begin production in mid-2024 [2]. - The company is entering the robotics sector, which is expected to create a second growth curve. This includes acquiring a 71% stake in a precision electromechanical company and establishing a subsidiary focused on exoskeleton robotics [2]. Summary by Sections Financial Performance - In 2024, the company's gross margin is expected to decline by 1.4 percentage points to 27.6%, with a significant drop in Q4 2024 gross margin to 23.7% due to rising aluminum prices and accounting adjustments [1]. - The revenue growth rate is projected to be 14.31% in 2025, with net profit growth expected to be 15.66% [4][10]. Global Expansion and Robotics - The company is actively expanding its global footprint to counteract tariff impacts, with operational factories in Mexico and Malaysia. The Mexico plant is already profitable, and the Malaysian facility will start producing aluminum and zinc alloy components in 2024 [2]. - The entry into the robotics market is seen as a strategic move to enhance profitability and diversify product offerings, with ongoing internal development and external acquisitions [2]. Valuation Metrics - The report provides a detailed financial forecast, including projected revenues and net profits for 2025E at 7.71 billion CNY and 1.09 billion CNY, respectively. The company’s P/E ratio is expected to decrease from 16 in 2023 to 10 by 2027 [4][10].