VEICHI(688698) CSC SECURITIES (HK) LTD·2025-04-17 07:55Investment Rating - The investment rating for the company is "Buy" with a target price of 54 CNY, indicating a potential upside from the current price of 46.07 CNY [1][7]. Core Insights - The company achieved a revenue of 1.64 billion CNY in 2024, representing a year-over-year growth of 25.70%. The net profit attributable to shareholders was 245 million CNY, up 28.42% year-over-year [7]. - The company has successfully expanded its overseas market, achieving a revenue of 460 million CNY from international sales, which is a 45.2% increase year-over-year [7]. - The gross margin improved by approximately 1 percentage point to 39.15%, while the expense ratio increased to 24.30% due to investments in market development and R&D [7]. - Future revenue growth is anticipated, particularly in the humanoid robotics sector, with expected net profits of 300 million CNY, 350 million CNY, and 430 million CNY for 2025, 2026, and 2027 respectively [7][9]. Company Overview - The company operates in the electrical equipment industry, with a primary focus on variable frequency drives (63.1% of revenue) and servo systems (30.2% of revenue) [3]. - The company has a market capitalization of 9.738 billion CNY and a price-to-book ratio of 4.65 [1]. - Major shareholders include Huai'an Weichuang Electric Technology Co., Ltd., holding 57.15% of shares [1]. Financial Projections - The company is projected to achieve net profits of 299 million CNY in 2025, 354 million CNY in 2026, and 431 million CNY in 2027, with corresponding year-over-year growth rates of 22%, 18%, and 22% [9]. - Earnings per share (EPS) are expected to be 1.42 CNY, 1.68 CNY, and 2.04 CNY for the years 2025, 2026, and 2027 respectively [9].