Investment Rating - The investment rating for the company is "Buy-A" with a target price of 55.65 CNY, indicating a potential upside from the current price of 49.55 CNY [5]. Core Views - The company has shown a strong performance in Q1 2025 with revenue of 148 million CNY, a year-on-year increase of 22.35%, and a net profit of 24 million CNY, reflecting a significant year-on-year growth of 2152.47% [1][2]. - The company is focusing on expanding its ultrasonic technology platform into new sectors such as automotive wiring harnesses and semiconductors, which is expected to drive revenue growth in the coming years [2]. - Short-term recovery in lithium battery utilization rates is anticipated to boost order volumes, while stable contributions from consumables will support performance [2]. Financial Performance - In Q1 2025, the company's gross margin was 64.91%, an increase of 9.30 percentage points year-on-year, and the net profit margin was 15.78%, up by 14.96 percentage points year-on-year [10]. - The company has seen a continuous improvement in contract liabilities, which stood at 37.62 million CNY at the end of Q1 2025, indicating a positive trend for sustained revenue growth [11]. - Revenue projections for 2025-2027 are estimated at 760 million CNY, 1.017 billion CNY, and 1.394 billion CNY, with corresponding year-on-year growth rates of 30%, 34%, and 37% [12]. Product and Market Development - The company is optimizing its product structure, with significant growth in automotive wiring harnesses and semiconductors, which are beginning to show volume increases [3]. - In 2024, revenue from the automotive wiring harness segment reached 81 million CNY, a year-on-year increase of 352.37%, while semiconductor revenue was 47 million CNY, up by 195.66% [8]. - The consumables segment generated 1.84 billion CNY in revenue in 2024, reflecting a growth of 70.45% year-on-year, driven by increased market demand and higher utilization rates from lithium battery customers [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 [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].