HangKe Technology(SH:688006)2024-05-29 11:00Investment Rating - The investment rating for the company is Neutral, indicating that the expected total return over the next 12-18 months is anticipated to be in line with the relevant broad market benchmark [11][26]. Core Insights - The company has sufficient orders and is expected to benefit from the ongoing expansion of lithium battery production overseas. As of the end of Q1 2022, 2023, and 2024, the company's inventory was approximately 2.38 billion RMB, 2.90 billion RMB, and 2.88 billion RMB, respectively, with contractual liabilities of 1.50 billion RMB, 2.24 billion RMB, and 2.21 billion RMB, confirming a robust order book [2][7]. - The company is well-positioned to benefit from the capacity expansions of lithium battery manufacturers in the USA, Europe, and Southeast Asia, with key clients including SK, LG, Samsung SDI, Panasonic, Toyota, and BYD [2][7]. - The company's gross profit margin (GPM) for 2023 was 37.54%, an increase of 4.64 percentage points year-on-year, while the net profit margin (NPM) was 20.58%, up 6.38 percentage points year-on-year, primarily due to a higher proportion of high-margin overseas business [13][19]. Financial Performance and Forecast - The company’s revenue is projected to grow at a rate of 20% annually from 2024 to 2026, with a stable gross margin of 55% during the same period [3]. - For 2023, the company reported overseas revenue of 0.77 billion RMB, a significant increase of 221.2% year-on-year, accounting for 19.54% of total revenue [19]. - The financial forecast indicates that total revenue will reach approximately 5.85 billion RMB by 2026, with a consistent gross margin around 37.4% [18].