KDL(SZ:002850) Soochow Securities·2025-05-31 04:15Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company is a global leader in lithium battery structural components, with a domestic market share of over 50% and a global market share of approximately 30% [8][14] - The company has established strong partnerships with major battery manufacturers, ensuring stable growth and profitability [8][42] - The structural components industry has high barriers to entry, and the company is expected to maintain its competitive edge through technological and cost advantages [8][34] Summary by Sections Company Overview - The company has rapidly grown by binding with leading battery manufacturers, achieving a domestic market share of 50% in lithium battery structural components [14] - The business structure is heavily focused on lithium battery structural components, which contribute over 95% of revenue and profit [21] - The company’s revenue is expected to follow industry growth, with a projected revenue of 120 billion yuan in 2024, reflecting a year-on-year increase of 14% [24] Industry Analysis - The structural components significantly impact battery safety and consistency, accounting for about 8% of battery costs [34] - The global market for structural components is projected to grow at a compound annual growth rate (CAGR) of 15%-20% over the next three years [39] - The industry is characterized by stable competition, with leading companies maintaining significant market shares [42] Competitive Advantages - The company possesses deep technological and cost advantages, which are expected to sustain its profitability [8][34] - The company is expanding its overseas production capacity, which is anticipated to contribute significantly to revenue growth [8][34] - The company has established joint ventures to enter the robotics sector, focusing on harmonic reducers, which could provide substantial future earnings potential [8][34] Financial Projections - The company’s net profit is projected to grow from 18.8 billion yuan in 2025 to 27.9 billion yuan in 2027, with corresponding P/E ratios of 16, 13, and 11 [8][24] - The report estimates a stable net profit margin of over 10% for the company, indicating strong operational efficiency [28]