Investment Rating - The report initiates coverage on the company with an "Accumulate" rating [2] Core Insights - The company, Sikan Technology, is a leading domestic manufacturer of 3D scanners, showing steady growth in performance and profitability that exceeds comparable companies in the industry. The company is rapidly innovating its products and expanding into downstream applications such as aerospace and healthcare [1][6] - The global market for 3D visual digitization products is projected to grow from 12.29 billion yuan in 2022 to 40.01 billion yuan by 2027, with a CAGR of 26.6%. In China, the market is expected to grow from 1.49 billion yuan in 2022 to 6.03 billion yuan by 2027, with a CAGR of 32.3% [6][41] - The company holds a significant market share in the domestic handheld and tracking 3D scanning products, ranking first in China and second globally in the manual product segment [6][55] - The company has a high gross margin of over 75%, with a projected revenue CAGR of 27.6% and a net profit CAGR of 21.3% from 2021 to 2024 [6][19] Financial Data and Valuation - The company is expected to achieve total revenue of 3.92 billion yuan in 2025, with a year-on-year growth of 18%, and a net profit of 1.30 billion yuan, reflecting an 8% increase [1][6] - The financial projections for the company from 2023 to 2027 indicate a steady increase in total revenue and net profit, with revenue expected to reach 5.62 billion yuan and net profit 1.68 billion yuan by 2027 [1][6] - The company's price-to-earnings (PE) ratio is projected to decrease from 77.8 in 2023 to 52.8 in 2027, indicating an improving valuation over time [1][6] Market Position and Competitive Landscape - The company is positioned as a leader in the domestic industrial-grade 3D scanning market, with a focus on both industrial and professional-grade products [11][14] - The competitive landscape shows that the top five companies in the manual product market hold a combined market share of 59.1%, with Sikan Technology leading at 16.3% [55][57] - The company benefits from a concentrated ownership structure, with the top three shareholders holding a combined 50.78% of the shares, which may influence strategic decisions [31][32] Growth Opportunities - The company is expanding into multiple emerging sectors, including commercial aerospace and brain-machine interfaces, which opens new growth avenues [6][71] - The increasing demand for 3D visual digitization products across various industries, including automotive, healthcare, and education, supports the company's growth trajectory [47][53] - The trend of domestic substitution in the 3D scanning market is gaining momentum, as local manufacturers improve technology and offer competitive pricing [56][60]

Investment Rating - The report gives a "Strong Buy" rating for the company, with a target price of 148.35 CNY based on a 70x PE for 2025 [6][9]. Core Insights - The company is a global provider of 3D visual digitalization solutions, focusing on both industrial and professional-grade markets. It has shown rapid revenue growth, with a CAGR of 37.9% from 2020 to 2024 [6][32]. - The global market for 3D visual products is expected to grow significantly, reaching 400 billion CNY by 2027, with a CAGR of 26.6% [8][12]. - The company has a strong R&D foundation, with a focus on self-developed core technologies, which positions it well for future growth [6][9]. Financial Summary - Total revenue is projected to grow from 333 million CNY in 2024 to 677 million CNY in 2027, with year-on-year growth rates of 22.4%, 26.5%, 26.9%, and 26.8% respectively [2][9]. - Net profit attributable to shareholders is expected to increase from 121 million CNY in 2024 to 209 million CNY in 2027, with growth rates of 5.5%, 19.6%, 19.8%, and 20.8% [2][9]. - The company maintains a gross margin above 75.5% since 2020, indicating strong profitability [32][34]. Market Position and Growth Drivers - The company operates in a rapidly expanding 3D digitalization market, with a significant focus on industrial applications, which accounted for 96% of its revenue in 2024 [6][8]. - The penetration of 3D visual products is increasing, with expectations for manual products to capture a larger market share by 2027 [8][12]. - The company has established a stable shareholding structure, with major shareholders holding 44.64% of the equity, ensuring consistent management [6][30]. Product Development and Innovation - The company has a robust product development cycle, introducing new products every 1-2 years, including innovations in handheld and automated 3D scanning technologies [14][15]. - R&D expenses have been maintained at around 18% of revenue, reflecting a commitment to innovation and technology advancement [34][41]. Industry Overview - The global 3D digitalization market was valued at 500.6 billion CNY in 2022, with expectations to grow significantly, driven by advancements in automation and machine vision technologies [8][12]. - The domestic market for machine vision is also expanding, with a projected CAGR of 17.5% from 2024 to 2028 [38][43].