Wuxi Best Precision Machinery (SZ:300580) Huachuang Securities·2025-11-11 09:13Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 30.6 CNY [2][8]. Core Insights - The company's Q3 2025 performance met expectations, with revenue of 1.12 billion CNY, a year-on-year increase of 8%, and a net profit attributable to shareholders of 236 million CNY, up 5% year-on-year [2][4]. - The company is focusing on expanding its precision components business while actively developing markets for new energy vehicles and industrial machinery, which is expected to open up growth opportunities in the future [8][9]. Financial Performance Summary - Revenue Forecast: Projected total revenue for 2024A is 1.357 billion CNY, with expected growth rates of 1.0% in 2024, 11.8% in 2025, 18.2% in 2026, and 16.1% in 2027 [4][9]. - Net Profit Forecast: Expected net profit for 2024A is 289 million CNY, with growth rates of 9.6% in 2024, 9.0% in 2025, 21.8% in 2026, and 14.4% in 2027 [4][9]. - Earnings Per Share (EPS): Projected EPS for 2024A is 0.58 CNY, increasing to 0.88 CNY by 2027 [4][9]. - Valuation Ratios: The company is expected to have a price-to-earnings (P/E) ratio of 43 in 2024, decreasing to 29 by 2027 [4][9]. Business Development Summary - The first tier of the company's industry is expected to continue providing stable growth, including core components for turbochargers and various precision parts [8][9]. - The establishment of Anhui Best, a wholly-owned subsidiary, is aimed at accelerating production capacity in the new energy vehicle sector, focusing on lightweight structural components and high-value precision parts [8][9]. - The third tier, involving industrial machinery and linear actuators, is also expanding, with the company developing high-precision components and enhancing its integrated solutions [8][9].