Investment Rating - The investment rating for the company is "Accumulate" [1] Core Views - The company achieved a revenue of 232.39 million yuan in 2024, representing a year-on-year growth of 10.09%, while the net profit attributable to shareholders decreased by 40.81% to 21.06 million yuan [2] - The decline in profit is attributed to increased costs, including depreciation and interest expenses, following the completion of the new factory, as well as a reduction in government subsidies [2] - The company has successfully entered small-scale production of harmonic reducers, which is expected to open up growth opportunities [3][4] Summary by Sections Financial Performance - Total revenue for 2024 is projected at 232.39 million yuan, with a year-on-year increase of 10.09% [2] - Net profit attributable to shareholders is forecasted at 21.06 million yuan, down 40.81% year-on-year [2] - The gross profit margin is 36.31%, an increase of 0.97 percentage points year-on-year, while the net profit margin is 9.06%, a decrease of 7.79 percentage points year-on-year [2] Business Segments - Sales of precision mechanical components grew steadily, with product revenue reaching 180 million yuan, up 17.78% year-on-year, accounting for 77.52% of total revenue [3] - Processing revenue was 45 million yuan, down 13.06% year-on-year, making up 19.39% of total revenue [3] - The harmonic reducer segment has completed design and internal technical verification, positioning the company for market responsiveness and production capability [3][4] Growth Potential - The company is positioned as a leader in its niche, with a focus on high precision and quality, serving major clients such as THK and Yaskawa Electric [4] - The harmonic reducer market is expected to provide a second growth curve, with applications in industrial and service robots [4] - The company is actively engaging with potential customers for its self-developed harmonic reducers, with some small batch orders already received [4][5]