Investment Rating - The report assigns a "Buy" rating for the company, marking the first coverage of the stock [4]. Core Insights - The company is a leading domestic manufacturer of servo systems, with products spanning military, renewable energy, and industrial control sectors. In 2023, military servo system revenue accounted for 42.2%, while civilian servo system revenue made up 57.8% [3][4]. - The servo system market in China reached a scale of 19.5 billion yuan in 2023, with significant potential for domestic substitution as foreign companies hold a substantial market share [3][4]. - The company is expected to benefit from increasing defense budgets and a growing demand in the wind power and injection molding machine sectors, leading to projected net profits of 164 million yuan, 217 million yuan, and 299 million yuan for 2024, 2025, and 2026 respectively [4][5]. Summary by Sections Company Overview - The company, founded in 2008, is recognized as a leading provider of military-grade servo systems and has been involved in civilian servo system development. Its main products are categorized into three areas: aerospace and military servo systems, renewable energy servo systems, and industrial control servo systems [3][4][28]. Market Potential - The servo system is a critical component for automation, with applications in machine tools, electronic manufacturing equipment, packaging machinery, and textile machinery. The domestic market for servo systems is expected to grow significantly, with a current market size of 19.5 billion yuan [3][4][65]. Demand Outlook - The demand for servo systems is anticipated to rise due to increased defense spending, which is projected to reach 1.67 trillion yuan in 2024, and a recovery in the civilian sectors, particularly in wind power and injection molding machines [4][5][84]. Financial Projections - The company’s revenue is expected to grow from 1.35 billion yuan in 2023 to 1.88 billion yuan by 2026, with a compound annual growth rate (CAGR) of 9.2% from 2019 to 2023. The projected net profits for 2024, 2025, and 2026 are 164 million yuan, 217 million yuan, and 299 million yuan respectively [4][5][34].
星辰科技：伺服市场星辰大海，军民两用潜力无限