Leaderdrive(SH:688017) CSC SECURITIES (HK) LTD·2025-04-30 08:33Investment Rating - The report assigns a "Buy" rating to the company, indicating a potential upside of 15% to 35% [5][12]. Core Insights - The company has shown strong revenue growth in Q1 2025, with a year-over-year increase of 19.65%, driven by a recovery in the domestic downstream market [6][8]. - The company is focusing on the humanoid robot core component sector, which is expected to provide significant growth opportunities in the future [10][13]. - Despite a competitive market leading to a decline in gross margin, the company continues to expand its overseas market presence, particularly in key regions such as Japan, Southeast Asia, North America, and Europe [7][8]. Company Performance - In 2024, the company achieved a revenue of 3.87 billion RMB, representing an 8.77% year-over-year growth, while the net profit was 0.56 billion RMB, down 33.26% year-over-year [8][11]. - The company's revenue from harmonic reducers was 3.25 billion RMB, with a year-over-year growth of 2.56%, while the mechatronic equipment segment saw a significant increase of 56.74% [8][11]. - The gross margin for 2024 was 37.54%, a decrease of 3.60 percentage points compared to the previous year, primarily due to price adjustments in a competitive market [8][11]. Financial Projections - The company is projected to achieve net profits of 0.81 billion RMB in 2025, 1.16 billion RMB in 2026, and 1.51 billion RMB in 2027, with year-over-year growth rates of 44.95%, 41.92%, and 30.92% respectively [11][13]. - The earnings per share (EPS) are expected to be 0.44 RMB in 2025, 0.63 RMB in 2026, and 0.83 RMB in 2027, reflecting a positive growth trajectory [11][13]. Market Position - The company holds a leading position in the harmonic reducer and mechatronic product markets, with a focus on lightweight and compact technologies for humanoid robots [10][13]. - The product mix is heavily weighted towards harmonic reducers and metal components, which account for 84% of total revenue, while mechatronic products and smart automation devices contribute 13.6% and 1.2% respectively [3].