Zhejiang Rongtai(SH:603119) Huaxin Securities·2025-05-06 00:23Investment Rating - The report maintains a "Buy" rating for the company [1][8] Core Insights - 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 [3][4] - In 2024, the company achieved a revenue of 1.135 billion yuan, a 42% increase year-over-year, with a net profit of 230 million yuan, reflecting a 34% growth. The gross margin was 34.55% and the net margin was 20% [4] - The company is expanding into humanoid robots, acquiring a 51% stake in KGG to enhance its competitiveness in the screw rod business and other niche areas, indicating a proactive approach to capacity building and market expansion [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] Financial Performance Summary - The company forecasts net profits of 328 million yuan, 471 million yuan, and 662 million yuan for 2025, 2026, and 2027 respectively, with earnings per share (EPS) projected at 0.90 yuan, 1.29 yuan, and 1.82 yuan [8][10] - The main revenue growth rates are expected to be 41.8% in 2024, 37.7% in 2025, 35.0% in 2026, and 35.2% in 2027 [10][11] - The gross margin is projected to improve to 35.8% in 2025 and 36.6% in 2026, with net margins increasing to 21.0% and 22.3% respectively [10][11]