HGPE(SZ:301261) Tianfeng Securities·2025-05-14 02:25Investment Rating - The report initiates coverage with a "Buy" rating for the company [4][6]. Core Viewpoints - The company is a leader in ductile iron casting and is expanding into core components for robotic reducers, leveraging advanced casting technology to broaden its product applications [1][4]. - The casting industry has a promising outlook, with significant advantages in continuous casting of ductile iron [2][4]. - The company is expected to achieve substantial revenue growth, with projected revenues of 1.245 billion, 1.534 billion, and 1.942 billion yuan for 2025, 2026, and 2027 respectively, reflecting year-on-year growth rates of 20.5%, 23.2%, and 26.6% [4][5]. Summary by Sections 1. Focus on Advanced Casting Technology and Product Application Expansion - The company, established in 2012, specializes in precision machining and continuous cast iron parts, holding core technologies in these fields and forming a "one core product and process, two core application areas" business structure [1][14]. - The company has seen steady revenue growth, with a compound annual growth rate (CAGR) of 14.5% in revenue and 10.9% in net profit from 2018 to 2023 [21][22]. - The company has a concentrated shareholding structure, with the actual controllers holding over 50% of the shares, which supports its expansion projects [29][32]. 2. Leading Continuous Casting Technology and Market Expansion - China leads the global casting industry, with ductile iron casting showing significant growth potential [10][35]. - The company has developed a leading continuous casting production line, achieving an annual output of 135,000 tons, positioning itself as a major supplier in the industry [10][50]. - The demand for products in the air compression and hydraulic sectors is rapidly increasing, with the company capitalizing on this growth [56][57]. 3. Deepening Industry Engagement and Robotic Reducer Component Layout - Ductile iron is well-suited for the core requirements of robotics, with the company making strides in the RV reducer market, which is undergoing domestic substitution [3][63]. - The company has made technological breakthroughs in key components for RV reducers and is beginning to supply these products in small batches, indicating potential for significant market share [3][63].