KDL(002850) Guolian Securities·2024-05-07 07:30Investment Rating - The report maintains a "Buy" rating for the company with a target price of 129.77 CNY, based on a current price of 102.25 CNY [6][4]. Core Insights - The company reported Q1 2024 earnings that exceeded market expectations, with a revenue of 2.509 billion CNY, a year-on-year increase of 7.84%, and a net profit of 309 million CNY, up 27.76% year-on-year [1][2]. - Cost reduction and efficiency improvements have significantly contributed to the company's performance, with a gross margin of 22.18% and a net profit margin of 12.30% in Q1 2024 [2]. - The establishment of overseas production bases is progressing well, which is expected to enhance the company's profit structure and increase orders from international clients [2][3]. - The company is entering the robotics sector through a joint venture, which is anticipated to create a second growth curve by expanding its product offerings in precision components and robotic systems [3]. Financial Summary - Revenue projections for 2024-2026 are 13.204 billion CNY, 16.043 billion CNY, and 19.059 billion CNY, with corresponding growth rates of 25.61%, 21.50%, and 18.80% [4][5]. - Net profit forecasts for the same period are 1.460 billion CNY, 1.830 billion CNY, and 2.238 billion CNY, with growth rates of 21.58%, 25.31%, and 22.31% [4][5]. - The company is expected to maintain a strong earnings per share (EPS) growth, with projected EPS of 5.41 CNY, 6.78 CNY, and 8.29 CNY for 2024, 2025, and 2026 respectively [4][5].