HangKe Technology(SH:688006) HTSC·2025-05-11 07:30Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 22.66 [6][7]. Core Views - The company reported a revenue of RMB 2.981 billion in 2024, a year-on-year decrease of 24.18%, and a net profit attributable to the parent company of RMB 326 million, down 59.67% year-on-year. The decline in performance is attributed to a slowdown in downstream customer demand and slow progress in equipment acceptance [1][4]. - Despite the challenges, the company is expected to see significant growth in overseas orders in 2024, with a potential demand rebound in both domestic and international markets in 2025, leading to a maintained "Buy" rating [1][4]. Summary by Sections Financial Performance - In 2024, the company's gross margin was 31.32%, down 5.51 percentage points year-on-year, primarily due to intensified domestic market competition and increased operating costs from certain overseas DDP model orders. The overall expense ratio increased to 14.62%, up 5.94 percentage points year-on-year [2]. - The company’s revenue for 2025 is projected to be RMB 3.909 billion, with a year-on-year growth of 31.13%, and a net profit of RMB 619 million, reflecting a recovery from the previous year's decline [5][11]. Market Expansion - The company has made significant strides in expanding its overseas market presence, securing orders from major clients such as Volkswagen in Europe and maintaining deep cooperation with strategic clients in Japan and South Korea [3]. - By the end of 2024, the company will have six major domestic factories and overseas facilities in Japan and South Korea to meet the growing demand from international clients [3]. Profitability Forecast - The forecast for net profit attributable to the parent company is adjusted to RMB 619 million for 2025, reflecting a decrease of 33% from previous estimates, with further projections of RMB 799 million in 2026 and RMB 1.087 billion in 2027 [4][11]. - The company is expected to maintain a competitive edge in the market due to its expanding overseas capacity and advantages in downstream equipment [4][19].