Leaderdrive(SH:688017) CSC SECURITIES (HK) LTD·2025-10-31 06:45Investment Rating - The report assigns a "Buy" rating to the company, indicating a potential upside in the stock price [8][10]. Core Insights - The company has demonstrated rapid revenue growth, with a 47.4% year-over-year increase in revenue for the first three quarters of 2025, reaching 410 million RMB. The net profit for the same period increased by 59.2% to 90 million RMB [9][11]. - The growth is attributed to the recovery in the downstream robotics market and the completion of a production expansion project, which has increased the company's capacity [11]. - The company is actively expanding into new fields such as embodied intelligence and machine tools, which are expected to drive future growth [11]. Summary by Sections Company Overview - The company operates in the machinery equipment industry, with a current stock price of 159.92 RMB and a market capitalization of 29.318 billion RMB [2]. Recent Ratings - The company has consistently received "Buy" ratings in recent reports, with the latest rating issued on December 4, 2024 [3]. Product Portfolio - The product mix includes 78.3% harmonic reducers and metal components, 16.6% mechatronic products, and 3.2% intelligent automation equipment [4]. Financial Performance - For Q3 2025, the company reported a gross margin of 39.6%, an increase of 1.5 percentage points year-over-year, and a net profit margin of 25.9%, up 4.5 percentage points [11]. - The company expects net profits of 120 million RMB, 150 million RMB, and 203 million RMB for 2025, 2026, and 2027, respectively, reflecting significant growth [11][13]. Market Position - The company is a leader in the harmonic reducer market and is well-positioned to benefit from the growth in industrial robotics production, which increased by 29.8% year-over-year [11].