Loctek(SZ:300729) Guohai Securities·2024-04-23 13:00Investment Rating - The report assigns an "Accumulate" rating for the company, marking its first coverage [1][6]. Core Insights - The company achieved a revenue of 3.90 billion with a year-on-year growth of 21.6% and a net profit of 630 million, reflecting a significant increase of 189.7% year-on-year [3]. - The company's cross-border e-commerce sales reached 1.77 billion, growing by 12.6% year-on-year, with independent site sales contributing 670 million, up 16.7% year-on-year [4]. - The overseas warehouse business showed robust growth, generating 950 million in revenue, a 94.0% increase year-on-year, and accounting for 24.4% of total revenue [4]. - The company is expected to maintain strong growth momentum, with projected revenues of 4.89 billion, 6.00 billion, and 6.95 billion for 2024, 2025, and 2026 respectively [6][21]. Financial Performance Summary - In 2023, the company's linear drive product revenue was 2.04 billion, a 10.5% increase, representing 69.8% of the main revenue excluding overseas warehouses [18]. - The gross margin improved to 36.5%, an increase of 2.1 percentage points year-on-year, while the expense ratios for sales, management, finance, and R&D were 20.1%, 4.2%, 1.0%, and 3.7% respectively [18]. - The company forecasts a return on equity (ROE) of 21% for 2023, with a projected decline to 13% in 2024, followed by a recovery to 14% in the subsequent years [21].