Group 1 - The company has officially signed an acquisition agreement for Shenzhen Tongzhan Precision, acquiring 51% of the shares for 104 million yuan, marking an acceleration in its robotics business [1] - The acquisition is expected to leverage the company's 20 years of precision manufacturing capabilities, customer resources, and production advantages to promote the industrialization of the screw rod business [1] - The company forecasts net profits of 156 million, 194 million, and 237 million yuan for 2025-2027, with current price-to-earnings ratios of 62.4, 50.1, and 41.1 times, maintaining a "buy" rating [1] Group 2 - Tongzhan Precision, established in 2012, specializes in automation products and has a strong reputation and financial health, with 2024 revenue of 53.97 million yuan, a gross margin of 33.7%, and a net margin of 3.0% [2] - The screw rod business is crucial for humanoid robots, characterized by high barriers, high value, and technical convergence, with domestic manufacturers needing to overcome significant challenges [2] - The micro screw technology from Tongzhan Precision can be applied to core components of robotic hands, and the company's existing resources can be reused for the screw rod business, providing a solid foundation for technological breakthroughs and market expansion [3]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The acquisition of Shenzhen Tongzhan Precision has been finalized, marking an acceleration in the company's robotics business. The company has invested 104 million yuan to acquire 51% of the equity, which is expected to leverage its 20 years of precision manufacturing capabilities to drive the industrialization of the screw rod business. The projected net profits for 2025-2027 are 156 million, 194 million, and 237 million yuan respectively, with corresponding P/E ratios of 62.4, 50.1, and 41.1 times [6][7][9]. Financial Summary - The total market capitalization of the company is 9.742 billion yuan, with a circulating market capitalization of 8.743 billion yuan. The current stock price is 73.03 yuan, with a 1-year high of 91.27 yuan and a low of 16.34 yuan. The turnover rate over the past three months is 314.61% [1][6]. - Revenue projections for 2023A to 2027E are as follows: 652 million, 740 million, 1.115 billion, 1.543 billion, and 2.039 billion yuan, with year-on-year growth rates of 0.6%, 13.5%, 50.6%, 38.4%, and 32.1% respectively. The net profit attributable to the parent company is projected to grow from 120 million yuan in 2023A to 237 million yuan in 2027E [9][11]. Business Development - Tongzhan Precision, established in 2012, specializes in automation products such as ball screws and precision linear modules. The company has a strong reputation and financial health, with 2024 revenue of 53.97 million yuan and a gross margin of 33.7% [7][8]. - The screw rod business is critical for humanoid robots, characterized by high barriers and value. The collaboration with Tongzhan Precision is expected to enhance the company's capabilities in this area, leveraging existing resources and customer networks to expand into new markets [8][9].

Investment Rating - The investment rating for the company is "Buy" [7] Core Views - The company achieved a slight decline in net profit of approximately 0.2% in 2024, but saw a growth of about 6% in Q1 2025. The revenue for 2024 was 740 million yuan, a year-on-year increase of 13.53%, while the net profit was 120 million yuan [1][5] - The company is expanding into the screw rod sector through the acquisition of 51% of Tongzhan Precision Technology, which is expected to enhance its competitive edge and extend its industrial chain [3] - The growth in the new energy vehicle (NEV) market is anticipated to drive rapid performance growth for the company, with projections indicating a market size of approximately 104.2 billion yuan for wheel hub units and reducer bearings by 2026 [4] Financial Summary - In 2024, the company reported a gross margin of approximately 31.61% and a net margin of 16.24%, both showing a decline compared to the previous year. The gross margin for Q1 2025 was 30.82%, down 4.67 percentage points year-on-year [2] - Revenue forecasts for 2025-2027 are 1.052 billion, 1.483 billion, and 1.740 billion yuan, representing year-on-year growth rates of 42%, 41%, and 17% respectively. The net profit is expected to be 128 million, 147 million, and 154 million yuan for the same period [5][12]

Core Viewpoint - The company reported a slight decline in net profit for 2024 but anticipates growth in Q1 2025, driven by revenue increases across various product lines and strategic acquisitions in the precision machinery sector [1][3][4]. Financial Performance - In 2024, the company achieved operating revenue of 740 million yuan, a year-on-year increase of 13.53%, with a net profit of 120 million yuan, a slight decline of 0.18% [1] - For Q1 2025, the company reported operating revenue of 186 million yuan, a year-on-year growth of 23.55%, and a net profit of 34.94 million yuan, up 6.22% [1] - The gross profit margin for 2024 was approximately 31.61%, down 0.41 percentage points year-on-year, while the net profit margin was 16.24%, down 2.23 percentage points [2][3]. Product Performance - Revenue from the hub unit in 2024 was 264 million yuan, up 14.35%, accounting for 35.64% of total revenue; cone bearings generated 126 million yuan, up 5.85%, with a 17.06% revenue share; separation bearings saw a decline of 9.33% to 105 million yuan, with a 14.18% share; hub bearings increased by 16.68% to 138 million yuan, representing 18.59%; and tension wheels generated 51.16 million yuan, up 15.99%, with a 6.91% share [1]. Cost and Expenses - The company’s expense ratio for 2024 was 13.03%, an increase of 0.92 percentage points year-on-year, with specific increases in management and R&D expenses [3]. Strategic Acquisitions - The company signed an agreement to acquire 51% of Tongzhan Precision Technology, aiming to enhance its capabilities in the micro-screw and precision linear module markets, thereby extending its industrial chain and improving competitiveness [3]. Market Outlook - The domestic market for hub units and reducer bearings is projected to reach approximately 104.2 billion yuan by 2026, with the new energy vehicle front-end market expected to grow to around 10 billion yuan [4]. - The company is positioned to benefit from industry growth and domestic substitution, with a market share in the new energy vehicle hub unit and reducer bearing front-end market expected to exceed 20% post-capacity ramp-up [4]. Profit Forecast and Valuation - Revenue projections for 2025-2027 are 1.05 billion, 1.48 billion, and 1.74 billion yuan, with year-on-year growth rates of 42%, 41%, and 17%, respectively [5]. - Net profit forecasts for the same period are 128 million, 147 million, and 154 million yuan, with corresponding growth rates of 7%, 15%, and 4% [5].