RADICAL(SZ:300652) KAIYUAN SECURITIES·2025-04-30 09:09Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [6]. Core Insights - The company is a leading supplier of automotive bearings in China, with a significant shift towards the OEM market, indicating a growth inflection point. The integration of robotics and the acquisition of a screw manufacturing company are expected to enhance its market position [6][8]. - The company anticipates substantial revenue growth, with projected net profits of 156 million, 194 million, and 237 million yuan for 2025, 2026, and 2027 respectively, reflecting a corresponding PE ratio decline from 48.6 to 32.1 times [6][8]. Summary by Sections 1. Automotive Bearing Supplier and OEM Market Expansion - The company has established long-term partnerships with major clients such as SKF and Xiaopeng, focusing on hub bearings and cone bearings [6][16]. - The transition from the aftermarket (AM) to the OEM market is expected to drive significant growth, with a projected increase in sales volume from 123,000 units in 2019 to 677,000 units in 2024, achieving a CAGR of 41% [28][33]. 2. Synergy Between Bearing and Screw Manufacturing - The manufacturing processes for bearings and screws share significant similarities, allowing the company to leverage its existing capabilities to enter the high-end screw market [7][40]. - The company plans to acquire a precision screw manufacturer to enhance its product offerings and integrate its supply chain [8][40]. 3. Strategic Positioning in the Humanoid Robot Sector - The company aims to establish a subsidiary focused on humanoid robotics, anticipating a market expansion worth 230 billion yuan as production scales up [8][19]. - The automotive screw market is projected to reach 460 billion yuan by 2030, further emphasizing the company's strategic positioning in high-growth areas [8][19]. 4. Financial Projections and Valuation Metrics - Revenue is expected to grow from 652 million yuan in 2023 to 2,039 million yuan by 2027, with a year-on-year growth rate peaking at 50.6% in 2025 [8][12]. - The company's gross margin is projected to remain above 30%, with net profit margins expected to stabilize as operational efficiencies improve [35][38].