Neway CNC(688697)2025-05-17 12:25Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook for its stock performance relative to the market [7][8]. Core Insights - The company has demonstrated steady growth in its performance, with a revenue of 2.462 billion yuan in 2024, reflecting a year-on-year increase of 6.08%. The net profit attributable to the parent company was 325 million yuan, up 2.36% year-on-year [1][7]. - The company is focusing on enhancing its product competitiveness through increased R&D investment, which reached 112 million yuan in 2024, a 10.35% increase from the previous year [3][7]. - The company is expanding its production capacity with a planned investment of at least 850 million yuan for a new high-end intelligent CNC equipment project, expected to be completed by June 2027 [3][7]. Performance Overview - The company's revenue from large machining centers was 1.08 billion yuan in 2024, up 12.64% year-on-year, while vertical CNC machine revenue was 746 million yuan, up 15.44% year-on-year. However, horizontal CNC machine revenue decreased by 12.71% to 604 million yuan [2][7]. - Domestic revenue significantly increased to 2.107 billion yuan, a 31.34% rise, while overseas revenue fell to 342 million yuan, down 51.42% [2][7]. Financial Projections - Revenue projections for 2025, 2026, and 2027 are estimated at 2.742 billion yuan, 3.075 billion yuan, and 3.473 billion yuan, respectively, with corresponding net profits of 365 million yuan, 412 million yuan, and 471 million yuan [6][7]. - The report anticipates a continued growth trend, with a projected revenue growth rate of 11% in 2025, 12% in 2026, and 13% in 2027 [6][7]. Market Context - The overall market for metal cutting machine tools is expected to benefit from policy support and the rapid development of sectors such as new energy vehicles and artificial intelligence, which may enhance future demand for machine tools [7].