LSKJ(300680) 招商证券·2025-04-21 10:36Investment Rating - The investment rating for the company is "Strongly Recommended" [2][10]. Core Views - The company has significantly improved its profitability, with total revenue, net profit attributable to shareholders, and net profit excluding non-recurring items for 2024 reaching 2.397 billion, 224 million, and 183 million respectively, representing year-on-year growth of 31.21%, 52.81%, and 59.18% [1][9]. - The company is actively expanding its new business segments, particularly in the automotive and aerospace sectors, which are expected to drive future growth [10][12]. Financial Performance - In Q4 2024, the company achieved revenue and net profit of 754 million and 71 million respectively, with year-on-year increases of 17.77% and 42.24% [6]. - The company’s sales gross margin for 2024 was 17.95%, and the net profit margin was 9.57% [1][6]. - The company’s revenue is projected to grow from 1.827 billion in 2023 to 7.405 billion by 2027, with a compound annual growth rate (CAGR) of 59% [9][12]. Business Segments - The company has shown strong performance in the automotive engine exhaust gas recirculation (EGR) system market, with production and sales of EGR components increasing by 28.30% and 31.80% respectively in 2024 [6]. - The company has established a subsidiary focused on electric vehicle motor core components, with significant orders from major clients expected to start in the second half of 2025 [6][10]. - In the aerospace sector, the company has secured strategic partnerships and is supplying precision components for satellite energy modules and control modules [7][10]. Valuation Metrics - The company’s return on equity (ROE) for 2024 is projected to be 11.6%, with a price-to-earnings (PE) ratio of 35.6 for 2024 and expected to decrease to 11.8 by 2027 [2][9][12]. - The company’s net profit is expected to reach 345 million in 2025, corresponding to a PE ratio of 23.1 [10][12].