GreatStar(002444) 浙商证券·2025-04-06 14:43Investment Rating - The investment rating for the company is "Buy" (maintained) [6] Core Viewpoints - The recent announcement of "reciprocal tariffs" by the Trump administration poses both challenges and opportunities for the company, which has strong global capabilities and can better withstand risks during tariff cycles [1][2] - The company has a clear path for managing tariff impacts, with a significant portion of its revenue coming from ODM business, where tariff costs are borne by customers. The company plans to mitigate costs through manufacturing efficiency and product innovation [1][2] - The company is expected to benefit from a favorable mid-term landscape, as its overseas production capabilities remain advantageous compared to local U.S. production, which faces higher costs [2][3] - The anticipated interest rate cuts in the U.S. are expected to boost demand in the real estate sector, positively impacting the tools industry [4] Summary by Sections Tariff Impact and Company Strategy - The company is positioned to manage the impact of the new tariffs effectively, with a focus on maintaining customer relationships and product pricing strategies [1][2] - The company has initiated price increases to cover the additional tariff costs, demonstrating its ability to pass on costs to consumers [1] Mid-term Industry Dynamics - The comparative advantage of non-U.S. production, particularly in Southeast Asia, remains significant despite the narrowing of tariff differentials [2] - The company is well-placed to capture market share due to its established global supply chain and production capabilities [3] Demand and Economic Outlook - Historical data suggests that the company and the industry have shown resilience during previous tariff impacts, with stable demand expected despite short-term challenges [4] - The expected reduction in interest rates is likely to enhance housing demand, further supporting the tools market [4] Financial Projections - The company is projected to see significant growth in net profit from 2024 to 2026, with estimates of 2.41 billion, 2.85 billion, and 3.49 billion respectively, reflecting year-on-year increases of 42.5%, 18.4%, and 22.2% [10] - The current market valuation indicates that the company is undervalued compared to its peers, with a projected P/E ratio of 13.6, 11.5, and 9.4 for the years 2024 to 2026 [10]