Damon(SH:688360) East Money Securities·2024-02-28 16:00Investment Rating - The report gives a "Buy" rating for the company, with a target price of 30.02 CNY per share, based on a projected PE ratio of 25 for 2024 [52][53]. Core Insights - The company is positioned to benefit from the rapid growth of cross-border e-commerce and has established partnerships with major platforms like SHEIN and Amazon, which are expected to drive overseas business expansion [6][28]. - The company has a strong competitive edge due to its comprehensive coverage of the logistics industry chain, which differentiates it from many peers that primarily focus on system integration [29]. - The report highlights the potential for significant growth in overseas markets, driven by increasing demand for intelligent logistics solutions and the company's ability to leverage its technological advantages [28][64]. Summary by Sections Company Overview - The company, established in 1997, has over 20 years of experience in intelligent logistics technology and operates globally with production bases in multiple countries [10][39]. - It has developed a full industry chain covering core components, key equipment, and system integration, making it a leader in the logistics equipment sector [18][54]. Industry Situation - The global logistics equipment manufacturing market reached 200 billion CHF in 2022, with low concentration among leading companies, indicating significant room for industry consolidation [61][84]. - The rapid growth of cross-border e-commerce platforms is driving demand for intelligent logistics solutions, with the number of overseas warehouses increasing significantly [72][90]. Growth Drivers - The company is expected to see revenue growth driven by its overseas business, which has been increasing from 16.4% in 2018 to 28.4% in 2022 [40]. - The report anticipates that the company's revenue will grow at rates of 7.5%, 23.7%, and 11.0% from 2023 to 2025, respectively, due to the integration of acquired companies and expansion into new markets [47][53]. Financial Analysis - The company reported a net profit of 0.82 billion CNY in 2022, with a compound annual growth rate of 8.6% over three years [24]. - The report projects that the company's gross margin will improve, reaching 24.0% by 2025, driven by a higher proportion of revenue from core components [47]. Comparable Companies - The report compares the company to international peers, suggesting that it is undervalued relative to its growth potential and competitive advantages, with a recommended valuation range of 20-30X PE [29][84].