Investment Rating - The report initiates coverage with a "Buy" rating for the company [5] Core Insights - The company specializes in the research, manufacturing, and sales of customized micro and special reduction motors, with a diverse product line exceeding 3,000 specifications [1][14] - The company has shown significant revenue growth, achieving 282 million yuan in 2024, a year-on-year increase of 61.69%, and a net profit of 95 million yuan, up 98.51% [1][16] - The reduction motor market in China is projected to grow from 884 billion yuan in 2023 to 1,156 billion yuan by 2030, with a CAGR of 5.12% from 2024 to 2030 [2][33] Summary by Sections Company Overview - The company has a strong focus on the micro and special reduction motor sector, continuously expanding its downstream application scenarios [1][14] - It has established long-term partnerships with renowned companies such as Siemens, Schneider Electric, and Eaton, enhancing its market position [3][56] Market Potential - The reduction motor market is vast, with applications in various industries including power distribution, RVs, and renewable energy [2][33] - The company is actively expanding into new fields such as electric bicycles and humanoid robots, aiming to create new growth curves [4][61] Financial Performance - The company forecasts revenues of 364 million yuan in 2025, 451 million yuan in 2026, and 543 million yuan in 2027, with respective growth rates of 29%, 24%, and 20% [5][6] - The net profit is expected to reach 114 million yuan in 2025, 135 million yuan in 2026, and 159 million yuan in 2027, with growth rates of 20%, 19%, and 18% respectively [5][6] Research and Development - The company maintains a high R&D expense ratio of over 4.5%, with significant investments in technology and product quality [3][51] - It holds 82 patents, including 22 invention patents, showcasing its commitment to innovation [51][52] Customer Base - The company has a strong customer base, including major players in the power distribution and solar industries, which enhances its competitive edge [3][56] - It has established strategic partnerships with key clients, ensuring a stable supply chain and long-term collaboration [56][57]