IKD(SH:600933) HTSC·2025-10-31 06:57Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 33.77 [1][5]. Core Insights - The company's Q3 performance exceeded expectations, driven by a significant increase in gross margin, which rose by 2.85 percentage points quarter-on-quarter [1][2]. - The company is actively expanding into robotics as a second growth curve, with the acquisition of Zhuoerbo expected to enhance profits and achieve business synergies [1][4]. - The overseas market revenue share has steadily increased, reaching 51.9% in H1 2025, with limited impact from tariff fluctuations due to strategic positioning in Mexico [3]. Summary by Sections Q3 Performance - Q3 revenue reached RMB 1.86 billion, a year-on-year increase of 7.86% and a quarter-on-quarter increase of 4.28%. The net profit attributable to the parent company was RMB 322 million, up 10.36% year-on-year and 2.04% quarter-on-quarter [1]. - The gross margin for Q3 was 32.59%, showing a significant improvement of 2.84 percentage points year-on-year and 2.85 percentage points quarter-on-quarter, attributed to faster revenue growth from higher-margin small parts and effective internal cost control [2]. Strategic Developments - The company is focusing on a dual-engine strategy of automotive and robotics, having established a robotics subsidiary and completed the acquisition of Zhuoerbo, which specializes in micro motors and extends into robotics and drones [4]. - The completion of the Malaysian facility in June 2024 is expected to enhance vertical integration capabilities in aluminum alloy production [3]. Financial Forecast and Valuation - The company’s revenue projections for 2025-2027 are RMB 79.12 billion, RMB 108.26 billion, and RMB 129.89 billion, respectively, with net profits of RMB 11.99 billion, RMB 14.97 billion, and RMB 18.00 billion [5][10]. - The target price is set at RMB 33.77, based on a price-to-earnings ratio of 29.0 for 2025, reflecting an increase from the previous estimate of 26.4 [5].