SHANDONG WEIDA(002026) 国信证券·2025-05-23 10:30Investment Rating - The report gives the company an "Outperform" rating for the first time, with a reasonable valuation range of 13.60 to 15.10 CNY, indicating a potential upside of 15% to 27% compared to the current stock price of 11.85 CNY [5][3][4]. Core Insights - The company is a leading player in the electric tool accessory market and is accelerating its expansion into the new energy and high-end equipment sectors. In 2024, the company is expected to achieve a net profit of 300 million CNY, a year-on-year increase of 80%, despite a 6% decline in revenue to 2.221 billion CNY [1][8][24]. - The electric tool market is recovering, with the company's electric tool accessory business revenue expected to grow by 30% year-on-year to 1.138 billion CNY in 2024, accounting for 51% of total revenue [2][31]. - The new energy business is actively developing battery packs and battery swap stations, with revenue projected to be 809 million CNY in 2024, a decrease of 33% year-on-year, representing 36% of total revenue [2][52]. - The high-end equipment manufacturing business is steadily progressing, with revenue expected to be 201 million CNY in 2024, a decline of 8%, making up 9% of total revenue [3][67]. Summary by Sections Financial Performance - In 2024, the company is projected to achieve total revenue of 2.221 billion CNY, a decrease of 6% year-on-year, and a net profit of 300 million CNY, an increase of 80% year-on-year. The gross margin is expected to be 25.89%, up 6.91 percentage points year-on-year, and the net margin is expected to be 13.63%, up 6.03 percentage points year-on-year [1][8][24]. - For Q1 2025, the company is expected to report revenue of 440 million CNY, a decrease of 10% year-on-year, and a net profit of 59 million CNY, an increase of 1% year-on-year [1][8]. Business Segments - Electric Tool Accessories: Revenue is expected to reach 1.138 billion CNY in 2024, a year-on-year increase of 30%, with a gross margin of 23.61% [2][31]. - New Energy: Revenue is projected to be 809 million CNY in 2024, a decrease of 33%, with a gross margin of 32.08% [2][52]. - High-end Equipment Manufacturing: Expected revenue is 201 million CNY in 2024, a decline of 8%, with a gross margin of 15.71% [3][67]. Market Trends - The global electric tool market is expected to recover, with a projected 25% year-on-year increase in shipments in 2024, driven by a recovery in demand in North America and Europe [43][44]. - The company has established a strong position in the electric tool chuck market, holding nearly 50% of the global market share [1][14]. Future Outlook - The company anticipates continued growth in its electric tool accessory business, with projected revenues of 1.28 billion CNY in 2025, 1.38 billion CNY in 2026, and 1.48 billion CNY in 2027 [76]. - The new energy business is expected to grow steadily, with projected revenues of 950 million CNY in 2025, 1.05 billion CNY in 2026, and 1.15 billion CNY in 2027 [77].