Changzhou Kaidi Electrical (SH:605288) Huaxin Securities·2026-01-07 08:02Investment Rating - The investment rating for the company is "Buy" and is maintained [2][6]. Core Insights - The company has been focused on linear drive systems for over 30 years and has achieved significant global expansion, becoming a leading player in the linear drive market with over 30% market share in electric sofa push rods [3][12]. - The linear drive market is expected to grow significantly, with a projected global market size of approximately $8.694 billion in 2025, reaching $10.38 billion by 2032, with a CAGR of 2.6% from 2026 to 2032 [4][50]. - The company is actively expanding into the humanoid robot sector, leveraging its strong technical capabilities in electromechanical integration [5][94]. Summary by Sections 1. Leading Company in Linear Drives - The company has established itself as a leader in the linear drive industry, with a focus on diverse application scenarios including smart homes, medical care, and automotive components [3][12]. - The company has a significant presence in North America and Europe, with a notable market share in electric sofa push rods [3][12]. 2. Broad Market Prospects for Linear Drives - The linear drive market is expanding into various fields, driven by global consumption upgrades and technological advancements [4][50]. - The smart home market is projected to grow to $173 billion by 2025, with a CAGR of 8.9% from 2022 to 2025 [58]. - The smart office market is expected to reach $51.63 billion in 2024, with a CAGR of 13.6% until 2029 [63]. 3. Strong Electromechanical Integration Capabilities - The company has developed a comprehensive vertical integration manufacturing system, allowing for in-house production of key components [5][94]. - The company is focusing on core motor technology and has made strategic investments in related fields such as gear reducers and joint modules [7][94]. 4. Profit Forecast and Rating - Revenue forecasts for 2025-2027 are projected at 1.378 billion, 1.530 billion, and 1.714 billion yuan respectively, with net profits expected to be 0.55 billion, 0.89 billion, and 1.11 billion yuan [6][8]. - The company is expected to gradually improve its profitability as overseas production capacity utilization increases and tariff impacts diminish [3][6].