Core Viewpoint - The company is expanding into the humanoid robot sector while continuing to focus on the high-end precision stamping steel materials market, which has significant growth potential due to increasing domestic automotive demand and opportunities for domestic substitution of imported materials [1][2]. Group 1: Company Overview - The company has been engaged in the research, production, and sales of customized precision stamping special steel materials for 20 years, primarily serving the automotive industry [1]. - The company plans to enter the robot sector in 2024, applying its precision stamping materials to components such as harmonic reducers and planetary reducers [1]. Group 2: Market Potential - The demand for precision stamping special steel in China is approximately 1 million tons per year, with a promising market outlook as the automotive manufacturing industry develops [1][2]. - There is still a significant reliance on imports for high-end precision stamping materials in China, presenting opportunities for domestic substitution [2]. Group 3: Competitive Advantage - The company has developed several core technologies in precision cold rolling and heat treatment, allowing its products to approach the performance of international leaders while offering prices 30%-50% lower than foreign competitors [2]. - The construction of a new plant in Anhui is expected to expand the company's capacity by 150,000 tons, targeting high-value markets such as high-end bearings and robotics [2]. Group 4: Financial Projections - The company is projected to achieve revenues of 1.78 billion, 2.09 billion, and 2.46 billion yuan in 2025, 2026, and 2027, respectively, with year-over-year growth rates of 20%, 17%, and 18% [3]. - Expected net profits for the same years are 250 million, 300 million, and 370 million yuan, with year-over-year growth rates of 18%, 22%, and 23% [3]. Group 5: Investment Recommendation - Based on comparable companies, the company is assigned a target price of 105.7 yuan with a 35X PE for 2025, indicating a "buy" rating [3].

Investment Rating - The report assigns a "Buy" rating for the company with a target price of 105.7 CNY, based on a 35X PE for 2025 [5][48]. Core Insights - The company has been deeply engaged in the precision stamping special steel materials sector for twenty years and is now venturing into the humanoid robot field, applying its materials innovatively in harmonic and planetary gear reducers [1][12]. - The domestic automotive market shows strong demand for precision stamping materials, with a significant opportunity for domestic substitution as the country still relies on imports for high-end materials [2][28]. - The company has developed core technologies in precision cold rolling and heat treatment, allowing it to produce materials that are competitive with international giants while offering lower prices [2][32]. Summary by Sections Company Overview - The company specializes in customized precision stamping special steel materials, primarily used in various automotive components, and plans to expand into the robotics sector in 2024 [1][12]. - The ownership structure is stable, with the chairman holding 30.16% of the shares, which is favorable for long-term development [14]. Main Business - The company is a leader in the domestic precision stamping materials market, with a focus on high-end product substitution [2][28]. - The automotive sector accounts for over 75% of the demand for precision stamping materials, with a current market demand of approximately 1 million tons per year [28][29]. - The company has a production capacity of 180,000 tons, with plans to expand by an additional 150,000 tons through a new plant in Anhui [2][34]. Robotics Sector - The company is innovatively applying precision stamping technology to the production of harmonic reducer flexible wheels, which are critical components in humanoid robots [3][38]. - This new application is expected to enhance production efficiency and reduce costs, opening a second growth curve for the company [3][44]. Financial Projections - Revenue is projected to reach 1.78 billion CNY in 2025, with a year-over-year growth of 20%, and net profit is expected to be 245 million CNY, growing by 18.45% [4][45]. - The company’s EBITDA is forecasted to be 309.24 million CNY in 2025, with a steady increase in profit margins as it moves into higher-end markets [4][46]. Valuation - The report compares the company with peers and sets a target valuation based on a 35X PE for 2025, reflecting a favorable market position and growth potential [48][49].