Leaderdrive(688017) Huachuang Securities·2024-04-30 08:02Investment Rating - The report maintains a "Recommendation" rating for the company, indicating an expectation to outperform the benchmark index by 10%-20% over the next six months [1][16]. Core Views - The company's performance is under short-term pressure, primarily due to weak demand in the downstream industrial robot sector. However, there are signs of recovery in gross margin for Q1 2024 [2][3]. - The company achieved a revenue of 356 million yuan in 2023, a decrease of 20.10% year-on-year, and a net profit of 84 million yuan, down 45.81% year-on-year. For Q1 2024, revenue was 82 million yuan, down 7.45% year-on-year, with a net profit of 20 million yuan, down 18.39% year-on-year [2][3]. - The company's gross margin for Q4 2023 was 39.65%, while it improved to 42.55% in Q1 2024, indicating a positive trend in profitability [2][3]. - The company holds a 25.7% market share in the domestic harmonic reducer market, but faces increasing competition from domestic manufacturers in the low-end market [2][3]. - The company is progressing steadily in capacity expansion, having completed construction for an annual production capacity of 500,000 precision reducers, with plans to complete smart production line adjustments in 2024 [2][3]. Financial Summary - In 2023, the company reported total revenue of 356 million yuan, with a year-on-year growth rate of -20.1%. The projected revenues for 2024, 2025, and 2026 are 440 million yuan, 554 million yuan, and 737 million yuan, respectively, with expected growth rates of 23.6%, 25.8%, and 33.0% [3][10]. - The net profit for 2023 was 84 million yuan, with a year-on-year decline of 45.8%. The projected net profits for the next three years are 106 million yuan, 157 million yuan, and 208 million yuan, with growth rates of 26.3%, 47.7%, and 32.5% [3][10]. - The earnings per share (EPS) for 2023 was 0.50 yuan, with projections of 0.63 yuan, 0.93 yuan, and 1.23 yuan for the following years [3][10].