Zhejiang Jiecang Linear Motion Technology (SH:603583) Shanxi Securities·2025-07-18 02:31Investment Rating - The report assigns an "Accumulate-A" rating for the company, marking its first coverage [1][7]. Core Insights - The company has established itself as a leading player in the linear drive industry, with over 20 years of experience and a strong market position. It is expanding into robotics, which presents new growth opportunities [4][6]. - The demand for linear drive products is expected to grow significantly due to the increasing application in various sectors such as smart homes, healthcare, and industrial automation [5][46]. - The company is well-positioned to benefit from the global trend towards automation and smart technology, with a projected compound annual growth rate (CAGR) of 8.34% for the linear drive market from 2023 to 2027 [46][67]. Summary by Sections Company Overview - The company has been deeply involved in the linear drive sector for over 20 years, holding a solid position as an industry leader. It was founded in 2000 and went public in 2018. The company has developed a diverse product range and has established subsidiaries in various regions [4][18]. - The management team is experienced, with a concentrated ownership structure that supports stability and strategic direction [10][29]. Financial Analysis - The company has shown consistent revenue growth, with a compound annual growth rate of 26.75% from 2017 to 2024. In 2024, the revenue reached 3.652 billion yuan, a year-on-year increase of 20.4% [8][32]. - The net profit for 2024 was 282 million yuan, reflecting a significant recovery with a year-on-year growth of 36.9% [8][32]. Market Demand - The linear drive market is expanding across various applications, including smart offices, healthcare, and smart homes. The global market for linear drive products is projected to reach 75.3 billion yuan by 2027 [46][67]. - The smart office segment is expected to grow due to increasing health awareness among workers, with the market for linear drive products in this area projected to reach 321 billion yuan by 2027 [55][58]. Growth Opportunities - The company is actively investing in robotics, having established a joint venture focused on developing robotic components, which is anticipated to open new growth avenues [6][4]. - The aging population and the demand for smart healthcare solutions are expected to drive the need for linear drive systems in medical devices, with a projected market size of 27.9 billion yuan by 2027 [59][67].