Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [2][7]. Core Views - The company is a leading player in the domestic nail fastening equipment segment and is expanding its product matrix, focusing on power tools and building hardware [4][34]. - The courtyard robot business is positioned in a rapidly growing market, with significant potential for revenue growth due to increasing demand in Europe and the US [5][39]. - The establishment of a joint venture for smart joints indicates the company's strategic move into high-tech fields, aiming to create new profit points [6][39]. Financial Performance - In 2024, the company is projected to achieve revenue of 607 million yuan, a year-on-year increase of 31.14%, and a net profit of 10.39 million yuan, up 118.09% [4][40]. - The gross margin for power tools is expected to be 19.38%, while building hardware products will have a gross margin of 35.14%, indicating strong profitability within the industry [4][42]. - The company anticipates significant growth in net profit from 2025 to 2027, with projected growth rates of 325.0%, 244.6%, and 73.0% respectively [7][40]. Business Segments - The main business includes the research, production, and sales of power tools and building hardware products, with a focus on expanding into garden tools and electric tools [34][39]. - The courtyard robot segment is expected to see explosive growth, leveraging the company's manufacturing capabilities and market positioning [5][39]. - The company is actively investing in the smart joint business, collaborating with partners to integrate resources and enhance its market presence [6][39]. Market Trends - The global building hardware market is projected to grow significantly, with a compound annual growth rate (CAGR) of 5.07% from 2024 to 2032 [53]. - The demand for electric tools and garden tools is increasing, driven by urbanization and a growing focus on quality of life [69][70]. - The company has established a strong foothold in the Japanese market, which is expected to continue expanding due to ongoing renovation needs in existing homes [54][63].

Group 1 - The company's main product, gas nail guns, has experienced a slight decline in sales in the domestic market due to the impact of the real estate industry [2] - The company has successfully mass-produced and sold its self-developed pneumatic nail guns and lithium battery nail guns, expanding the application scenarios of nail guns from high-altitude window fastening to home decoration, repair, and infrastructure [2]

Financial Performance - In 2024, the company achieved operating revenue of 606.63 million CNY, a year-on-year increase of 31.14% [3] - The net profit attributable to shareholders was 10.39 million CNY, up 118.09% year-on-year [3] - Total assets at the end of the reporting period were 1,063.56 million CNY, a decrease of 0.54% from the beginning of the year [3] - Net assets attributable to shareholders increased by 3.75% to 603.44 million CNY [3] Business Segments - The power tools segment generated revenue of 455.02 million CNY, a growth of 36.81% [4] - The building hardware segment reported revenue of 136.37 million CNY, with a year-on-year increase of 9.85% [4] Market and Competitive Landscape - The company has a strong R&D and production capability in the power tools sector, having mastered core technologies in gas nail guns [11] - The company has expanded its electric tool product line through the acquisition of a professional electric tool manufacturer [12] - The building hardware market in Japan is expected to grow due to ongoing renovations and improvements in living standards [16] Strategic Initiatives - Future growth will be driven by expanding sales, increasing automation, and optimizing internal supply chains [10] - The company plans to enhance its market presence by diversifying sales channels and increasing R&D investment [6] - Measures to stabilize stock prices include share buybacks and commitments from major stakeholders to support stock prices [5] Risk Management - The company is monitoring international trade conditions and currency fluctuations to mitigate risks associated with overseas markets [9] - There is no risk of inventory backlog as the increase in inventory is attributed to sales growth and pre-orders [13]

Core Viewpoint - The company, Tengya Precision Engineering, has reported its annual financial results, highlighting its main business in power tools and construction hardware products, with a focus on innovation and market expansion. Company Overview - Tengya Precision Engineering specializes in the research, production, and sales of power tools and construction hardware products, including gas nail guns and related accessories, pneumatic tools, and electric tools such as electric hammers and drills [4][5]. - The company has developed strong R&D and production capabilities in power tools, having mastered core technologies for gas nail gun production and established industry standards [4][5]. Business Developments - In July 2023, the company acquired a controlling stake in Tengya Iron Anchor, a professional electric tool manufacturer, which expanded its product line and business scale [5]. - The company’s gas nail guns and electric tools have gained significant market share domestically, with products sold under its own brand and through ODM arrangements in Europe and the Belt and Road markets [5]. Product Lines - The main products are categorized into power tools and construction hardware, with power tools further divided into pneumatic tools, electric tools, and tool consumables [6]. - Construction hardware products include specialized components developed for Japanese housing characteristics and local home decoration needs, exported primarily through ODM arrangements [5][6]. Financial Highlights - The company has proposed a cash dividend of 0.30 yuan per 10 shares (including tax) to shareholders, based on a total share capital of 141,392,720 shares after accounting for repurchased shares [3].