RTGF(SH:605133) Huaxin Securities·2025-04-13 05:23Investment Rating - The report maintains a "Buy" investment rating for Rongtai Co., Ltd. [1] Core Views - Rongtai Co., Ltd. plans to establish a joint venture with Jiangsu Runfu Power to create "Jiangsu RunTai Robot Technology Co., Ltd." focusing on the research and production of planetary roller screws and ball screws for humanoid robots and automotive chassis systems [2][3] - The joint venture will leverage Jiangsu Runfu's strong technical capabilities and existing patents, aiming to enhance production capacity significantly [2] - The company is expected to enter the robot sector, establishing itself as a key supplier in the supply chain for robots and automotive chassis [7] Summary by Sections Joint Venture and Market Expansion - The joint venture will have a registered capital of RMB 65 million, with Rongtai holding 45% and Runfu 55% [2] - Jiangsu Runfu reported a revenue of RMB 10.32 million and a net loss of RMB 2.03 million in 2024, indicating potential for growth with recent equipment upgrades [2] - The joint venture aims to address production bottlenecks in screw processing by developing specialized equipment [3] Financial Projections - Revenue forecasts for Rongtai Co., Ltd. are projected at RMB 2.53 billion in 2024, RMB 3.23 billion in 2025, and RMB 4.13 billion in 2026, with corresponding PE ratios of 37.0, 26.2, and 18.7 [7] - The company anticipates a significant increase in net profit, with projections of RMB 251 million in 2025 and RMB 352 million in 2026, reflecting growth rates of 64.8% and 40.2% respectively [9] Market Performance - The current stock price is RMB 30.3, with a total market capitalization of RMB 6.6 billion [4] - The stock has traded within a 52-week range of RMB 15.29 to RMB 35.79, indicating volatility and potential for growth [4]