Investment Rating - The report assigns an "Outperform" rating to the company [1]. Core Views - The company, Dingzhi Technology, is a well-known domestic manufacturer of linear actuators, with a revenue of 318 million yuan in 2022, representing a year-on-year increase of 63.99%, and a net profit of 101 million yuan, up 103.39% year-on-year [6][45]. - The growth is attributed to increasing demand in the medical device and industrial automation sectors, along with a steady rise in gross margin [6]. - The company has a strong market position, being the second-largest globally and the largest in China for linear actuators, with a significant portion of its core components produced in-house [39][67]. Summary by Sections Company Overview - Dingzhi Technology focuses on precision motion control solutions, primarily producing linear actuators, hybrid stepper motors, DC motors, and voice coil motors [39]. - The company has established stable partnerships with several well-known domestic and international clients, including Mindray Medical and Samsung [8]. Market Performance - The company has experienced significant revenue growth, with a compound annual growth rate (CAGR) of 49.04% for linear actuators from 2019 to 2022 [39]. - The gross margin for linear actuators reached 64.93% in 2022, an increase of 4.3 percentage points year-on-year [83]. Industry Growth Potential - The medical device market in China is projected to reach 1.7168 trillion yuan by 2025, with a CAGR of 15.55% from 2021 to 2025 [7]. - The global industrial automation market is expected to grow at a CAGR of 6.34% from 2023 to 2025 [7]. - The humanoid robot market is anticipated to grow from 1.62 billion USD in 2022 to 28.66 billion USD by 2032, with a CAGR of 33.28% [7]. Financial Projections - The company is expected to achieve net profits of 92 million yuan and 87 million yuan in 2023 and 2024, respectively, with corresponding earnings per share (EPS) of 0.95 yuan and 0.90 yuan [9]. - The estimated reasonable valuation range for the company is between 38.7 and 43.2 yuan, based on a price-to-earnings (PE) ratio of 43-48x for 2024 [9].
鼎智科技：线性执行器知名企业，人形机器人和医疗器械行业双驱动