【招银国际】恒立液压（601100）-Higher expenses are transitory; eyes on new products-250429（6页）.pdf

1、 PLEASE READ THE ANALYST CERTIFICATION AND IMPORTANT DISCLOSURES ON LAST PAGE MORE REPORTS FROM BLOOMBERG:RESP CMBR OR http:/.hk 1 MN 29 Apr 2025 CMB International Global Markets|Equity Research|Company Update Jiangsu Hengli(601100 CH)Higher expenses are transitory;eyes on new products Henglis repor

2、ted net profit in 4Q24/1Q25 was-4%YoY/+3%YoY and came in slightly lower than our expectation due to higher administrative expenses.That said,the higher expenses were due to the booking of depreciation of Mexico production plant and precision business(ball screws and linear motion)as a result of the

3、transfer of construction-in-progress to fixed assets.We fine-tune our 2025E/26E earnings forecast by-2%.We are staying positive on Hengli and revise up our TP to RMB92(previously:RMB64),based on 35x 2025E P/E(equivalent to historical average+1SD)as:(1)we roll over our valuation to 2025E,and(2)we bel

4、ieve humanoid robots components such as ball screws will serve as the important growth driver in the medium term.Maintain BUY.Key highlights in 2024 results:Revenue in 2024 grew 5%YoY to RMB10bn(1%/10%/2%/2%growth of hydraulic cylinders/pump&valve/hydraulic systems/components).Blended gross margin e

5、xpanded 1.4ppt YoY to 42.6%,driven by hydraulic cylinders.EBIT,however,was flat YoY largely due to a 1.8ppt YoY increase in administrative expense ratio(to 6.3%).Net profit was RMB2.5bn,stable YoY.In 4Q24,net profit dropped 4%YoY to RMB717mn,due to a 7%YoY decline in revenue and higher administrativ

6、e expense ratio(+3.4ppt to 8.7%).Key highlights in 1Q25 results:EBIT dropped 9%YoY to RMB579mn,as the 3%YoY increase in revenue was offset by 0.7ppt YoY contraction of gross margin(to 39.4%)and an increase in expense ratio in general.Helped by a 2.6x YoY increase in net finance income,net profit in