ZD Leader(SZ:002896) Ping An Securities·2024-04-11 16:00Investment Rating - The report gives a "Recommended" rating for the company, indicating a positive outlook on its investment potential [74]. Core Viewpoints - The company is positioned as a leading player in the precision reducer market, benefiting from the growing demand in the robotics and automation sectors. The report highlights the expected growth in the precision reducer market, with a projected CAGR of approximately 12.6% from 2022 to 2029 for planetary reducers [7][29][74]. - The company plans to enhance its product structure by focusing on integrated solutions that combine reducers, motors, and drives, aligning with industry trends towards miniaturization and integration [9][70]. - The report anticipates revenue growth for the company, projecting revenues of 1.042 billion yuan in 2023, 1.244 billion yuan in 2024, and 1.477 billion yuan in 2025, with corresponding growth rates of 16.0%, 19.4%, and 18.8% respectively [73][98]. Summary by Sections Section 1: Key Components in Transmission and Control Applications - The company has a comprehensive product range in the transmission and control applications sector, focusing on precision reducers and electric motors, which are essential for various high-end manufacturing fields [15][88]. - The smart execution unit has shown rapid growth, contributing significantly to the company's revenue [11][72]. Section 2: Precision Reducers as Core Components of Smart Manufacturing - Precision reducers are critical components in smart manufacturing, with various types catering to different applications. The report notes the significant market potential driven by the increasing adoption of robotics [29][30][41]. - The domestic market for precision reducers is expected to grow, with a notable increase in the localization rate of core components in industrial robots [61][83]. Section 3: Product Structure and Integrated Solutions - The company offers a wide range of products, providing one-stop services to meet diverse customer needs. It has over a thousand product specifications, catering to various industries [9][88]. - The company is expanding its production capacity, particularly in the southern region of China, to enhance its market presence and optimize its product offerings [91][70]. Section 4: Profit Forecast and Valuation Analysis - The report includes a detailed financial forecast, projecting net profits of 73 million yuan in 2023, 100 million yuan in 2024, and 127 million yuan in 2025, with corresponding EPS of 0.48 yuan, 0.66 yuan, and 0.84 yuan [73][98]. - The valuation analysis indicates a favorable outlook for the company's market share in the context of domestic smart manufacturing and the trend of import substitution [74][95].