Investment Rating - The report maintains a "Strong Buy" rating for the company, expecting it to outperform the benchmark index by over 20% in the next six months [7][17]. Core Views - The company reported a revenue of 1.14 billion yuan in 2024, an increase of 18.9% year-on-year, and a net profit attributable to shareholders of 217 million yuan, up 33.23% year-on-year. For Q1 2025, the revenue was 301 million yuan, a year-on-year increase of 6.53%, with a net profit of 56 million yuan, growing by 9.78% [1][8]. - The company is focusing on domestic substitution and product category expansion, maintaining strong profitability and enhancing market share through customized R&D and rapid service response [7][8]. Financial Performance Summary - In 2024, the company's gross margin was 30.6%, a slight increase of 0.41 percentage points year-on-year. The revenue from screw compressors and other products was 875 million yuan and 239 million yuan, respectively, with year-on-year growth of 17.84% and 24.57% [7][8]. - The company expects to achieve net profits of 257 million yuan, 304 million yuan, and 359 million yuan for 2025, 2026, and 2027, respectively, with year-on-year growth rates of 18.3% for 2025 and 2026, and 18.0% for 2027 [8][9]. Market Position and Strategy - The company has established a strong market presence by focusing on large clients and enhancing its brand value within the industry chain. Notable clients include BYD, Ningde Times, and others [7][8]. - The company is expanding its product line from screw compressors to vacuum pumps and centrifugal machines, with plans to develop high-end products for emerging industries such as renewable energy and semiconductors [7][8].

Investment Rating - The report maintains a "Strong Buy" rating for the company, expecting it to outperform the benchmark index by over 20% in the next six months [1][16]. Core Views - The company reported a revenue of 1.58 billion yuan for 2024, representing a year-on-year increase of 19.65%, and a net profit of 227 million yuan, up 3.45% year-on-year. The first quarter of 2025 showed even stronger growth, with a revenue of 423 million yuan, up 27.21%, and a net profit of 73 million yuan, up 78.51% year-on-year [1][3]. - The target price for the company's stock is set at 33.60 yuan, based on a projected 40 times price-to-earnings ratio for 2025 [1][7]. Financial Performance Summary - **2024 Financials**: Total revenue is projected at 1.58 billion yuan with a net profit of 227 million yuan. The gross margin is 35.80%, and the net margin is 14.39% [3][7]. - **2025 Projections**: Expected revenue growth to 2.10 billion yuan, with net profit increasing to 343 million yuan, reflecting a significant growth rate of 51.5% [3][7]. - **Earnings Per Share (EPS)**: Projected EPS for 2025 is 0.84 yuan, increasing to 1.20 yuan by 2027 [3][7]. Business Segment Insights - **Tool Products**: Revenue from tool products is expected to reach 1.19 billion yuan in 2024, driven by demand in AI servers and high-value PCB products [7]. - **Smart CNC Equipment**: Revenue from smart CNC equipment is projected to be 55 million yuan in 2024, with a year-on-year growth of 15.55% [7]. - **Functional Film Materials**: Revenue from functional film materials is expected to reach 155 million yuan in 2024, showing a remarkable growth of 72.84% [7]. Market Position - The company holds approximately 26.5% market share in the global PCB drill needle market, benefiting from the increasing demand for high-performance PCB products [7].

Investment Rating - The report maintains a "Strong Buy" rating for the company, expecting it to outperform the benchmark index by over 20% in the next six months [7][16]. Core Views - The company reported a revenue of 1.58 billion yuan for 2024, representing a year-on-year increase of 19.65%. The net profit attributable to the parent company was 227 million yuan, up 3.45% year-on-year, while the net profit excluding non-recurring items was 202 million yuan, reflecting a 14.76% increase [1][3]. - For Q1 2025, the company achieved a revenue of 423 million yuan, marking a 27.21% year-on-year growth, with a net profit of 73 million yuan, up 78.51% year-on-year, and a net profit excluding non-recurring items of 66 million yuan, which is an 87.74% increase [1][3]. Financial Summary - The total revenue is projected to grow from 1.58 billion yuan in 2024 to 2.10 billion yuan in 2025, with a compound annual growth rate (CAGR) of 33% [3]. - The net profit is expected to rise from 227 million yuan in 2024 to 343 million yuan in 2025, reflecting a significant growth rate of 51.5% [3]. - Earnings per share (EPS) are forecasted to increase from 0.55 yuan in 2024 to 0.84 yuan in 2025 [3]. - The company’s price-to-earnings (P/E) ratio is projected to decrease from 47 times in 2024 to 31 times in 2025, indicating an improving valuation [3]. Business Segments - The company's tool products generated revenue of 1.19 billion yuan in 2024, a year-on-year increase of 14.26%. The company holds a 26.5% market share in the global PCB drill needle market, benefiting from the rising demand for high-value PCB products driven by AI servers and high-speed communication [7]. - The smart CNC equipment segment is expected to generate 55 million yuan in revenue in 2024, up 15.55% year-on-year [7]. - The grinding and polishing materials segment is projected to achieve 151 million yuan in revenue, reflecting a 30.70% increase, while functional film materials are expected to generate 155 million yuan, a 72.84% increase year-on-year [7]. Investment Recommendations - The report adjusts the company's revenue expectations for 2025-2027 to 2.10 billion yuan, 2.54 billion yuan, and 3.02 billion yuan respectively, with net profits of 343 million yuan, 416 million yuan, and 492 million yuan [7]. - The target price is set at 33.60 yuan, based on a 40 times P/E ratio for 2025, reflecting the company's position as a leading global PCB tool manufacturer and its expansion into CNC tools and automation equipment [7].

Investment Rating - The report initiates coverage with an OUTPERFORM rating for the company, indicating expected performance above the market average over the next 12-18 months [19][28]. Core Insights - The company is experiencing a performance turnaround, with significant growth in emerging business sectors such as IGBT, wiring harness, and semiconductor applications. The lithium battery business is also recovering, leading to a positive outlook for future earnings growth [5][19]. - The target price is set at RMB 52.26, based on a 50x price-to-earnings (PE) ratio for 2025, which is higher than the industry average [5][7]. Financial Summary - The company’s revenue is projected to grow from RMB 525 million in 2023 to RMB 1,318 million by 2027, reflecting a compound annual growth rate (CAGR) of approximately 20.7% [4]. - Net profit is expected to increase from RMB 67 million in 2023 to RMB 249 million in 2027, with a notable recovery in profit margins [4]. - The earnings per share (EPS) forecast for 2025, 2026, and 2027 is RMB 1.05, RMB 1.80, and RMB 2.17 respectively [5][19]. Business Performance - In Q4 2024, the company reported a revenue of RMB 585 million, a year-on-year increase of 11.3%, and a net profit of RMB 86 million, up 29.04% year-on-year [20]. - The revenue from power battery ultrasonic welding equipment decreased significantly by 53.48% year-on-year, while parts business revenue increased by 70.45% [5][20]. - New business segments, including wiring harness connectors and semiconductor ultrasonic equipment, contributed 21.95% to total revenue [20]. Research and Development - The company maintains a high R&D investment rate of 21.65%, focusing on new product development and customer adoption in various sectors [5][20]. - The R&D efforts have led to breakthroughs in ultrasonic applications across multiple industries, including automotive, medical devices, and consumer electronics [5][17].