KEDE Numerical (SH:688305) CSC SECURITIES (HK) LTD·2025-11-25 08:38Investment Rating - The report assigns a "Buy" rating for the company, indicating a potential upside in the stock price [7]. Core Insights - The company specializes in advanced products such as five-axis CNC machine tools, with a strong foothold in the aerospace sector and ongoing expansion into medical and semiconductor fields. The diversification of its customer base is increasing [7]. - The company is developing axial flux motors, which are expected to create a new growth curve due to their advantages in power and torque density, making them suitable for applications in electric vehicles and robotics [7]. - Revenue for the first three quarters of 2025 reached RMB 400 million, a year-over-year increase of 5.0%, while net profit was RMB 60 million, a decrease of 11.5% year-over-year, primarily due to slower overseas revenue growth and stock incentive costs [7]. Financial Summary - The company forecasts net profits of RMB 120 million, RMB 170 million, and RMB 210 million for 2024, 2025, and 2026, respectively, with year-over-year growth rates of -8%, +40%, and +27% [9]. - Earnings per share (EPS) are projected to be RMB 0.90, RMB 1.25, and RMB 1.59 for the same years, with corresponding price-to-earnings (P/E) ratios of 65, 47, and 37 [9]. - The company’s revenue is expected to grow from RMB 628 million in 2024 to RMB 997 million in 2026, reflecting a strong upward trend in sales [11].