Leaderdrive(SH:688017) Great Wall Securities·2024-03-04 16:00Investment Rating - The report assigns an "Accumulate" rating for the company, marking its first coverage [1]. Core Views - The company is experiencing pressure on its performance due to weak downstream market demand, particularly in the industrial robotics sector, which has been affected by sluggish demand in the 3C electronics and semiconductor industries [2]. - Despite current challenges, the long-term growth potential remains strong, driven by the expansion of emerging demand scenarios in the industry [1][5]. - The company is positioned to benefit from the acceleration of domestic substitution processes in the precision reducer market, as domestic products are increasingly matching international standards in performance and stability [2]. - The focus on the transmission industry chain and the integration of electromechanical systems is highlighted as a key development direction, which is expected to enhance the efficiency and reduce costs for downstream manufacturers [5]. Financial Summary - In 2023, the company reported a revenue of 357 million yuan, a decrease of 19.9% year-on-year, with a net profit attributable to shareholders of 84 million yuan, down 45.8% from the previous year [1]. - Projections for 2024 and 2025 indicate a recovery, with expected revenues of 518 million yuan and 729 million yuan, respectively, alongside net profits of 170 million yuan and 238 million yuan [1][5]. - The company's financial ratios indicate a decline in profitability, with a return on equity (ROE) projected to recover to 8.0% in 2024 and 10.3% in 2025 [1][8]. Market Position and Strategy - The company is recognized as a leading domestic reducer manufacturer, poised to benefit from the long-term trends in industrial automation and the recovery of downstream market demand [5]. - The strategy includes increasing research and development investments in electromechanical integration and micro-hydraulic servo technologies, as well as enhancing brand promotion and international presence [5]. - The establishment of overseas headquarters in Singapore and a research center in Germany reflects the company's commitment to global expansion [5].