KEBODA(SH:603786)2025-05-29 04:58Investment Rating - The investment rating for Keboda Technology is maintained as BUY with a target price of RMB 81.02, indicating a potential upside of approximately 51% from the closing price of RMB 53.60 as of May 28, 2025 [1][8]. Core Insights - Keboda Technology is acquiring Czech company IMI for EUR 9.426 million to enhance its overseas expansion and improve its international production layout, which is crucial for securing orders in the automotive sector [1][2]. - The acquisition is expected to facilitate rapid integration of Keboda's business, leveraging IMI's established client base that includes major international auto brands such as Renault, Audi, BMW, and Tesla [2]. - A divestiture plan is in place to ensure ongoing revenue generation during the transition, allowing IMI to provide contract-manufacturing services to cover operating costs [3]. - The company has secured significant contracts with major clients, with overseas revenue constituting about one-third of total sales, highlighting the growing importance of international markets [4]. - Revenue projections for 2025, 2026, and 2027 are set at RMB 7.83 billion, RMB 10.15 billion, and RMB 12.56 billion respectively, with net profit forecasts of RMB 1.05 billion, RMB 1.44 billion, and RMB 1.84 billion [5]. Summary by Sections Acquisition and Integration - Keboda's acquisition of IMI is aimed at enhancing its production capabilities and meeting rising customer demand for suppliers with an overseas presence [1][2]. - The integration plan includes retaining essential assets and personnel from IMI to facilitate efficient deployment of production lines for overseas orders [2][3]. Financial Performance and Projections - The company anticipates robust earnings growth as global orders enter mass production, with revenue and net profit expected to grow significantly over the next few years [1][5]. - The financial forecasts indicate a strong growth trajectory, with revenue growth rates projected at 31.13% for 2025 and 29.70% for 2026 [5][12]. Market Position and Client Base - Keboda has established a strong market position with exclusive contracts from major automotive clients, reflecting its competitive edge in the auto parts industry [4]. - The company aims to complete the establishment of its European plant by 2025, aligning with its strategic goals for international expansion [4].