Investment Rating - The report maintains a "Buy" rating for the company [5][6]. Core Views - The company has shown steady growth in performance, with a significant increase in net profit in Q1 2025. The revenue for 2024 reached 9.39 billion, a year-on-year increase of 4.5%, while the net profit was 2.51 billion, up 0.4% year-on-year. The gross margin improved to 42.8%, an increase of 0.9 percentage points [1]. - The excavator-related business is expected to benefit from the recovery in the domestic construction machinery industry, with the company increasing its market share in excavator pump and valve products [2]. - The company is advancing its diversification strategy, developing products in non-excavator sectors, including industrial proportional valves and various hydraulic systems for different industries [3]. - The linear actuator project has begun mass production, which is anticipated to create a new growth driver for the company as the humanoid robot industry expands [4]. Summary by Sections Financial Performance - In 2024, the company achieved a revenue of 93.9 billion, with a net profit of 25.1 billion. The gross margin was 42.8%, and the net margin was 26.8% [1]. - For Q1 2025, the company reported a revenue of 24.2 billion, with a net profit of 6.2 billion, and a significant growth in net profit excluding non-recurring items of 16.4% [1]. Market Position - The company is positioned as a leading player in the construction machinery components sector, poised to benefit from the recovery in the domestic market [2]. Diversification Efforts - The company is actively pursuing a diversification strategy, with developments in various sectors beyond construction machinery, including wind power, automotive, and robotics [3]. New Growth Initiatives - The linear actuator project, supported by a 1.4 billion investment, is now in mass production and is expected to significantly contribute to future growth [4].