Zhejiang Rongtai(SH:603119) GOLDEN SUN SECURITIES·2025-09-30 02:22Investment Rating - The report maintains a "Buy" rating for the company [6] Core Views - The company has launched a 2025 employee stock ownership plan, demonstrating confidence in its long-term development. The plan involves raising a maximum of 56.03 million yuan through the purchase of 1.0123 million A-shares at a price of 55.35 yuan per share, which is 50.2% of the closing price on September 9 [1][2] - The employee stock ownership plan aims to motivate employees and reflects the company's confidence in achieving ambitious performance targets, with revenue or net profit growth rates set at no less than 15% to 40% from 2024 as the base year [2] - The company is expected to maintain significant growth driven by increasing overseas customer demand, particularly from top global automotive companies and battery leaders, solidifying its position in the new energy sector [3] - The acquisition of Diz Precision and a 15% stake in Guangzhou Jinli Intelligent Transmission Technology Co., Ltd. enhances the company's strategic layout in precision transmission and robotics, with a clear focus on expanding into emerging markets [3] Financial Summary - The company forecasts revenue growth from 800 million yuan in 2023 to 2.805 billion yuan in 2027, with year-on-year growth rates of 19.9%, 41.8%, 33.7%, 35.7%, and 36.2% respectively [5] - The projected net profit attributable to the parent company is expected to grow from 172 million yuan in 2023 to 577 million yuan in 2027, with corresponding growth rates of 28.4%, 34.0%, 34.0%, 34.5%, and 38.9% [5] - Earnings per share (EPS) is projected to increase from 0.47 yuan in 2023 to 1.58 yuan in 2027, reflecting the company's strong growth trajectory [5] - The price-to-earnings (P/E) ratio is expected to decrease from 233.4 in 2023 to 69.5 in 2027, indicating improving valuation as earnings grow [5]