DAHAO TECHNOLOGY(603025) 开源证券·2024-05-12 09:02Investment Rating - The report assigns a "Buy" rating to DaHao Technology (603025 SH) with a target price of 13 94 yuan [48][49] Core Views - The report highlights the strong demand for new Chinese style clothing which is driving the recovery of the sewing machinery industry [3][20] - DaHao Technology is expected to benefit from the recovery of domestic demand and the export rebound in the sewing machinery sector [23][29] - The company's CNC products are anticipated to see significant growth due to the increased demand for new Chinese style clothing and the recovery in the textile and apparel industry [20][29] Company Overview - DaHao Technology is a leading domestic supplier of electronic control systems for sewing and knitting equipment with a dominant market share in embroidery machine control systems (over 80%) and sock machine control systems (around 85%) [39][40] - The company's products are widely used in various stages of sewing and knitting processes including embroidery machines and special industrial sewing machines [39][45] Industry Trends - The new Chinese style clothing market has seen rapid growth with the market size reaching 1 billion yuan in 2023 and a compound annual growth rate (CAGR) of over 100% in the past three years [20][28] - The export of sewing machinery has shown a significant recovery with a 13 02% year on year increase in export value to 488 million USD in the first two months of 2024 [29][141] Financial Performance - DaHao Technology's revenue in Q1 2024 reached 643 million yuan a 50 70% year on year increase while net profit attributable to shareholders surged 101 48% to 148 million yuan [29][71] - The company's revenue is expected to grow from 2 692 billion yuan in 2024 to 4 268 billion yuan in 2026 with a CAGR of 23 6% [26] Valuation and Forecast - The report forecasts DaHao Technology's net profit to reach 649 million yuan in 2024 838 million yuan in 2025 and 1 027 billion yuan in 2026 with EPS of 0 58 0 76 and 0 93 yuan per share respectively [26][144] - The company's PE ratio is expected to decrease from 23 8x in 2024 to 15 1x in 2026 indicating a relatively low valuation compared to industry peers [26][93]