OKE(SH:688308) Huachuang Securities·2025-05-02 06:13Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 21.30 CNY [2][8]. Core Insights - The company reported a revenue of 1.127 billion CNY for 2024, representing a year-on-year increase of 9.81%. However, the net profit attributable to the parent company decreased significantly by 65.48% to 57 million CNY [2][4]. - For Q1 2025, the company achieved a revenue of 302 million CNY, up 14.32% year-on-year, but the net profit attributable to the parent company fell by 74.33% to 8 million CNY [2][4]. - The decline in profit is attributed to several factors, including the low gross margin during the initial phase of the CNC tool industrial park project, a decrease in the production of CNC blades, and increased expenses related to product upgrades and new product development [8]. Financial Performance Summary - The total revenue is projected to grow from 1.127 billion CNY in 2024 to 1.892 billion CNY by 2027, with a compound annual growth rate (CAGR) of approximately 18.9% [4][9]. - The net profit is expected to recover from 57 million CNY in 2024 to 198 million CNY in 2027, reflecting a significant growth rate of 22.3% in the final year of the forecast [4][9]. - The earnings per share (EPS) are projected to increase from 0.36 CNY in 2024 to 1.25 CNY in 2027, indicating a positive trend in profitability [4][9]. Market Dynamics - The company is experiencing growth in its hard alloy products, with a revenue increase of 12.50% in 2024, while CNC tools saw a modest growth of 3.35% [8]. - The overseas sales revenue reached 209 million CNY in 2024, marking a substantial increase of 49.22%, with CNC tool exports growing by 54.62% [8]. - The company is focusing on innovative sales models and comprehensive solutions, which are being validated in various sectors such as automotive, aerospace, and new energy [8].