GUILIN FUDA (SH:603166) Soochow Securities·2025-05-07 14:35Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [8]. Core Views - The company is positioned as a leading crankshaft manufacturer, with new growth avenues opened through its ventures into the new energy and robotics sectors [8]. - The demand for crankshafts is expected to rise due to the increasing popularity of hybrid vehicles, which still require crankshafts despite the rise of pure electric vehicles [8]. - The company has made significant investments in new energy gear technology and robotics, which are anticipated to contribute to future revenue growth [8]. Summary by Sections 1. Company Overview - Founded in 1995, the company has established itself as a leader in crankshaft manufacturing, with a product range that includes clutches, precision forgings, gears, and bolts [8][13]. - The company has entered the new energy sector with electric drive gears and is developing robotic reducer products, indicating a strategic shift towards diversification [8][13]. 2. Crankshaft Business Growth - The company has shifted its focus from commercial vehicles to passenger vehicles, capturing significant market share with clients like BYD and Li Auto [8][13]. - The crankshaft production line is expected to reach a capacity of 1 million hybrid crankshafts by May 2025, enhancing the company's performance in this segment [8][13]. 3. New Energy Gear Expansion - The company has invested 408 million yuan in developing new energy electric drive precision gear business, with production expected to start in July 2024 [8][13]. - The company has secured multiple projects with major clients such as BYD and Geely, indicating strong demand for its new energy gear products [8][13]. 4. Robotics Sector Entry - The company has entered the robotics market by acquiring a 35% stake in Changban Robot Technology, leveraging its existing client base and technical expertise [8][13]. - The synergy between its traditional automotive components and new robotics products is expected to provide a competitive advantage [8][13]. 5. Financial Projections - The company is projected to achieve revenues of 24.34 billion yuan in 2025, with a net profit of 3.01 billion yuan, reflecting significant growth potential [8][13]. - The earnings per share (EPS) are expected to increase from 0.47 yuan in 2025 to 0.71 yuan by 2027, indicating a positive outlook for investors [8][13].