Zhejiang Rongtai(SH:603119) Huaxin Securities·2025-05-05 10:31Investment Rating - The report maintains a "Buy" rating for the company [8] Core Views - The company demonstrated strong performance with a revenue of 266 million yuan in Q1 2025, representing a year-over-year increase of 24% and a quarter-over-quarter decrease of 18%. The net profit attributable to the parent company was 60 million yuan, up 27% year-over-year and down 7% quarter-over-quarter [4] - The company reported a total revenue of 1.135 billion yuan in 2024, a year-over-year increase of 42%, with a net profit of 230 million yuan, reflecting a 34% increase year-over-year. The gross margin was 34.55% and the net margin was 20% [4] - The company is expanding into humanoid robotics, acquiring a 51% stake in KGG to enhance its capabilities in the screw rod business and other niche areas, positioning itself for future growth in the robotics market [5] - The new battery safety standards set to take effect in July 2026 are expected to increase demand for mica, a key material in battery safety, thereby reinforcing the company's core business and growth potential [6] Summary by Sections Financial Performance - In Q1 2025, the company achieved a revenue of 266 million yuan, a 24% increase year-over-year, and a net profit of 60 million yuan, a 27% increase year-over-year [4] - For the full year 2024, the company reported revenues of 1.135 billion yuan, a 42% increase year-over-year, and a net profit of 230 million yuan, a 34% increase year-over-year [4][10] Business Expansion - The company is actively pursuing growth in humanoid robotics, having acquired a 51% stake in KGG to enhance its competitive edge in the screw rod sector and expand its production capacity [5] - The company is also focusing on lightweight materials to increase the value of individual units and broaden its operational capabilities [5] Market Outlook - The implementation of new battery safety standards is anticipated to boost the demand for mica, which is crucial for battery safety, thus enhancing the company's growth prospects [6] - The company forecasts net profits of 328 million yuan, 471 million yuan, and 662 million yuan for 2025, 2026, and 2027 respectively, with corresponding EPS of 0.90, 1.29, and 1.82 yuan [8][10]