1、 See the last page for disclaimer Page 1 of 21 Equity Research Equity Research Report Company Report 股股票票研研究究 力劲科技力劲科技 LK Tech(00558 HK)公公司司报报告告 证证券券研研究究报报告告 机械行业机械行业 Machinery Sector Company Report:LK Tech(00558 HK)Alex Bai 白舸(852)2509 7202 公司报告：力劲科技(00558 HK).hk 16 August 2022 Rapid Application of

2、 Single-Piece Die-Casting Solution Presents Long-Term Growth Space,Initiate With Buy 车身一体化压铸方案快速应用打开公司长期成长空间，首予“买入”LK is a leading global large-scale die-casting machines manufacturer,and the demand for these machines is strong.Teslas innovative application of the single-piece die-casting solution h

3、as changed the development trend of the die-casting industry.The single-piece die-casting solution has various advantages such as lightweight vehicle bodies,cost saving and improved efficiency;it is now the general trend to the adopt single-piece die-casting solution.Market demand for these machines

4、 has exploded rapidly,and the penetration rate of single-piece die casting is increasing.LK has first-mover advantages in the single-piece die-casting industry,and its position in the industry is stable.The Company is the leader in the large-scale die-casting machines industry and currently has a ma

5、rket share of more than 90%.The threshold for research and development of super-large die-casting machines is high;the Company has accumulated rich experience in R&D and has technological advantages in this industry.The company cooperates closely with Tesla,and may continue to make breakthroughs in

6、single-piece die casting in the future.In addition,automobile manufacturers plan to expand single-piece die casting to other auto parts,including battery packs,subframes,shock absorber towers,etc.,which will continue to enrich the demand for super-large die-casting machines.Initiate with Buy and a T

7、P of HK$18.84.We forecast that the companys revenue in FY23-FY25 will be HK$7,302 mn/HK$9,851 mn/HK$13,244 mn,respectively.Our TP represents 28.6x/20.2x/14.5x FY23-FY25 PE ratio and 5.1x FY23 PB ratio;the target market cap is HK$25.9 billion.力劲科技是全球压铸机龙头，超大型压铸力劲科技是全球压铸机龙头，超大型压铸机机需求强劲需求强劲。特斯拉创新应用车身一体

8、化压铸方案，改变压铸行业发展趋势。一体化压铸方案具备轻量化、省成本、高效率等多种优势，应用一体化压铸方案成大势所趋。市场对超大型压铸机的需求快速爆发，当前一体化压铸方案正处于渗透率提升初期。公司在一体化压铸方案上先发优势明显，行业地位稳固。公司在一体化压铸方案上先发优势明显，行业地位稳固。公司率先推出超大型压铸机，目前在超大型压铸机领域市场占有率超过 90%。超大型压铸机投入研发门槛较高，公司经验积累丰富，具备工艺优势。公司与特斯拉合作紧密，未来在一体化压铸方案上可能会持续突破。此外，主机厂计划将一体化压铸方案拓展到汽车其他零部件，包括电池包、副车架、减震塔等，将继续丰富超大型压铸机的需求。首

9、予“买入”，目标价为首予“买入”，目标价为 18.84 港元。港元。我们预计公司 2023-2025 财年营收分别为7,302/9,851/13,244 百万港元。我们的目标价对应 28.6 倍/20.2 倍/14.5 倍的 2023-2025财年市盈率和 5.1 倍的 2023 财年市净率，目标市值 259 亿港元。Rating:Buy Initial 评级：买入买入(首次覆盖)6-18m TP 目标价:HK$18.84 Share price 股价：HK$13.540 Stock performance 股价表现 Change in Share Price 股价变动 1 M 1 个月 3

10、M 3 个月 1 Y 1 年 Abs.%绝对变动%6.1 45.8(33.6)Rel.%to HS Index 相对恒指变动%7.3 45.1(9.5)Avg.share price（HK$）平均股价（港元）13.7 13.7 15.0 Source:Bloomberg,Guotai Junan International.Table_Year End Turnover Net Profit EPS EPS PER BPS PBR DPS Yield ROE 年结 收入 股东净利 每股净利 每股净利变动 市盈率 每股净资产 市净率 每股股息 股息率 净资产收益率 03/31(HK$m)(HK$

11、m)(HK$)(%)(x)(HK$)(x)(HK$)(%)(%)2021A 4,021 344 0.262 9,433.8 51.6 2.066 6.6 0.052 0.4 15.5 2022A 5,362 626 0.456 74.0 29.7 3.108 4.4 0.101 0.7 20.3 2023F 7,302 904 0.659 44.4 20.5 3.729 3.6 0.138 1.0 22.2 2024F 9,851 1,278 0.932 41.4 14.5 4.597 2.9 0.205 1.5 25.8 2025F 13,244 1,785 1.302 39.7 10.4

12、5.807 2.3 0.288 2.1 28.8 Shares in issue(m)总股数(m)1376.4 Major shareholder 大股东 Girgio Industries Limited 61.6%Market cap.(HK$m)市值(HK$m)18,636.3 Free float(%)自由流通比率(%)37.7 3 month average vol.3 个月平均成交股数(000)10,345.8 FY23 Net gearing(%)FY20 净负债/股东资金(%)13.6%52 Weeks high/low(HK$)52 周高/低(HK$)26.182/7.640

13、 FY23 Est.NAV(HK$)FY20 每股估值（港元）22.79 Source:the Company,Guotai Junan International.(70.0)(60.0)(50.0)(40.0)(30.0)(20.0)(10.0)0.010.020.030.0Aug-21Nov-21Feb-22May-22Aug-22%of returnHSI indexLK Technology See the last page for disclaimer Page 2 of 21 LK Tech 力劲科技(00558 HK)16 August 2022 Table_PageHead

14、er LK Tech(00558 HK)Company Report Contents COMPANY PROFILE.3 The company is the global leader in super-large die-casting machines,and it cooperates closely with Tesla.3 The Companys performance grew rapidly and the gross profit margin continued to increase.6 INDUSTRY ANALYSIS.9 Teslas innovative ap

15、plication of single-piece die-casting solutions has changed the development trend of the industry.9 The single-piece die-casting solution has many advantages,and will become the general trend.10 Rapidly rising penetration rate of die-casting parts has created strong demand for super-large die-castin

16、g machines.12 COMPETITION ANALYSIS.14 The threshold in research and development of super-large die-casting machines is high,and the Company has accumulated rich experience.14 The company has first-mover advantages,and close cooperation with Tesla will continue to stabilize its position in the indust

17、ry.14 GROWTH PROSPECT ANALYSIS.15 Tesla will devote more resources to single-piece die casting,and the demand for super-large die-casting machines will remain strong.15 Chinese new energy vehicle manufacturers are adopting single-piece die-casting solutions,and the penetration rate is expected to ri

18、se from 2023.16 EARNINGS FORECASTS AND RECOMMENDATION.18 Core assumptions.18 Earnings forecasts and recommendation.19 RISK FACTORS.19 The penetration rate of the single-piece die-casting solution may be lower than expected.19 Expected risks from new energy vehicle sales may be lower than expected.19

19、 Market competition may intensify.19 Financial Statements and Ratios.20 WYEYVWEZ4YRWAUFXaQbP8OtRoOpNpNjMrRwOfQnMsM6MoPqPxNmOsRNZrMtN See the last page for disclaimer Page 3 of 21 LK Tech 力劲科技(00558 HK)16 August 2022 Table_PageHeader LK Tech(00558 HK)Company Report COMPANY PROFILE The company is the

20、global leader in super-large die-casting machines,and it cooperates closely with Tesla LK Technology(LK,or the Company)is a Chinese enterprise that designs,manufactures and sells die-casting machines,plastic injection molding machines and CNC machining centers.The company was established in 1979 and

21、 subsequently listed on the Hong Kong Stock Exchange in 2006.In 2008,the company acquired the European die-casting machine brand-Italian IDRA Group(IDRA).The company has been deeply engaged in the field of die-casting machines for many years.As early as 1980,the company launched its first generation

22、 of LK hot chamber die-casting machines,becoming one of the largest die-casting machine manufacturers in the world.In addition,the company is one of the top five injection molding machine manufacturers in China.Figure-1:LKs Development Milestones Source:the Company,Guotai Junan International.The Com

23、panys shareholding structure is stable,with LK management holding a majority stake.Girgio Industries Limited is the trustee of the Liu Family Trust,which owns 61.62%of the Companys shares.Girgio is 95%owned by its chairman,Ms.Chong Siw Yin(Ms.Chong),and 5%by her spouse,Mr.Liu Siong Song(Mr.Liu).Ms.C

24、hong and Mr.Liu directly own 0.23%and 0.42%of the companys shares,respectively.The CEO of the company,Mr.Liu Zhuo Ming,is the beneficiary of the trust.In addition,Mr.Liu Zhuo Ming directly owns 0.07%of the companys shares.In total,the companys management owns 62.34%of the companys outstanding shares

25、.We believe that substantial management ownership aligns the managements interests with those of its shareholders.Figure-2:LKs Shareholding Structure Source:the Company,Guotai Junan International.See the last page for disclaimer Page 4 of 21 LK Tech 力劲科技(00558 HK)16 August 2022 Table_PageHeader LK T

26、ech(00558 HK)Company Report The Companys product categories are rich,and die-casting machines are the companys core product.The Companys products include die-casting machines,plastic injection molding machines and CNC machining centers,which are used in downstream industries such as automobiles,moto

27、rcycles,and electronic products.Die-casting machines are the Companys main business,accounting for 71.2%of total revenue in FY22.The Companys die-casting machine products include IMPRESS cold chamber die-casting machine,AVIS hot chamber die-casting machine and VISION hot chamber die-casting machine.

28、The companys wholly-owned subsidiary,IDRA,manufactures products including the NEO/Giga Press series,the OL CS series,and the innovative X Press.Figure-3:Companys Product Categories Die-Casting Machines LK IMPRESS&D-Series(Cold Chamber)Cold chamber die casting machine including integration of extensi

29、ve experience and the latest technology,for producing non-ferrous alloys such as aluminum alloy,copper alloy,magnesium alloy,etc.LK AVIS&CLASSIC (Hot Chamber)Advanced hot chamber die casting machines consist of technologies for producing zinca and lead alloy products.LK VISION(Hot Chamber)VISION is

30、the smallest series among all of LKs die-casting machines,providing a fast and efficient production cycle.It is commonly used for producing small parts like zippers,buttons,snap hooks,etc.;used for high volume production projects.IDRA NEO&Giga Press Designed for high performance and constant product

31、 quality.IDRA XPress Conceived and designed in Italy,XPress pushes the boundaries,with many technological innovations and world class specifications in one compact solution;designed to have the same high performance of larger and more costly presses.Plastic Injection Molding Machines FORZA(Two-Plate

32、n)A versatile and efficient injection molding machine for large parts See the last page for disclaimer Page 5 of 21 LK Tech 力劲科技(00558 HK)16 August 2022 Table_PageHeader LK Tech(00558 HK)Company Report LENA(Direct-clamp)Modern highly optimized direct ram type injection molding machine;a classic solu

33、tion for optical and engineering applications.POTENZA(Toggle-type)LKs Potenza utilizes proven technologies,with a sturdy toggle clamping system.EFFECTA-S(High-speed)Designed for demanding application technologies.CNC machining centers Tapping Center LK Tapping Center Series is engineered for quality

34、 mass production with good yield rate.Vertical Machining Center MV series can be used for machining general mechanical and assembly parts,die-casting parts,and mold processing.Horizontal Machining Center The LK horizontal machining center HT,LNH adopts a box-in-box design which firmly anchors two pr

35、e-tensioned X-axis ball screws for the optimum motion control performance and it upholds the good cutting results.See the last page for disclaimer Page 6 of 21 LK Tech 力劲科技(00558 HK)16 August 2022 Table_PageHeader LK Tech(00558 HK)Company Report Double Column Machining Center Rough cutting and finis

36、hing of mold production can be completed on one machine.Source:the Company,Guotai Junan International.The companys large-scale die-casting machines are strong technical strength and the Company is the exclusive supplier of Tesla.The company launched the worlds first 6,000-tonne super-large die-casti

37、ng machine in 2019.IDRA,the companys wholly-owned subsidiary in Italy,supplied Tesla with several 6,000-tonne super-large die-casting machines,Giga Press,from 2019 to produce the single-piece rear casts of Teslas Model Y.In addition,the Company supplied 6,000-tonne super-large die-casting machines f

38、or Teslas Shanghai giga factory.The cooperation between the Company and Tesla is very close.Besides,the company has delivered 8,000-tonne die-casting machines,and will deliver 9,000-tonne die-casting machines by the end of 2022,and is currently developing a 12,000-tonne die-casting machine.The compa

39、nys various types of die-casting machines will further meet Teslas demand for production of unibodies.The Company has also cooperated with Chinese new energy vehicle companies and auto parts manufacturers,and has signed contracts with several manufacturers to supply super-large die-casting machines

40、ranging from 6,000 tonnes to 12,000 tonnes.The Company is currently at full capacity on orders,and will gradually release new production capacity by the end of 2022.With the application of the single-piece die casting,the Companys orders for super-large die-casting machines has increased rapidly.The

41、 companys orders increased 40%YoY in FY22.At present,the Company can produce 2-3 super-large die-casting machines per month and is continuing to expand its production capacity.It has completed the first phase of its expansion plan in the Shenzhen-Shantou Special Cooperation Zone,which will be put in

42、to production at the end of 2022,and is expected to increase the production capacity by 1-2 units per month.On July 14,the Company announced the construction of a large-scale die-casting machine production base in Hangzhou Bay,Ningbo.It is expected to be put into production from March to May 2023,wi

43、th an annual capacity of 400 units.The Company expects that from March to May 2023,the production capacity of super-large die-casting machines above 6,000 tonnes will be doubled,and it is expected to achieve an additional production capacity of 4-5 units per month.The Companys performance grew rapid

44、ly and the gross profit margin continued to increase Demand for super-large die-casting machines is strong,and the Companys revenue continues to grow rapidly.In FY22,the Company achieved revenue of HK$3.91 billion(+33.4%yoy)and net profit attributable to shareholders of HK$626 million(+82.0%).Since

45、Tesla adopted the single-piece die-casting solution to produce vehicle chassis,Chinese new energy vehicle companies have subsequently adopted the single-piece die-casting solution.The Companys super-large die-casting machines are in strong demand.Die-casting machines are the Companys main business,a

46、ccounting for 71.2%of total revenue in FY22,plastic injection molding machine business accounted for 25.5%of total revenue,and CNC machine center business accounted for 3.4%of total revenue.See the last page for disclaimer Page 7 of 21 LK Tech 力劲科技(00558 HK)16 August 2022 Table_PageHeader LK Tech(00

47、558 HK)Company Report Figure-4:The Companys Revenue Figure-5:Revenue Breakdown by Business Source:the Company,Guotai Junan International.Source:the Company,Guotai Junan International.The Companys core market is China and is developing steadily in Europe,North America,Central and South America and ot

48、her regions.The Chinese market contributes the main share of revenue to the Company,as the Companys die-casting machine products accounted for more than 50%of the Chinese market.In the past two years,Teslas Shanghai Giga factory has purchased several 6,000-tonne super-large die-casting machines prod

49、uced by the Company,which has led to a rapid growth in revenue.Benefitting from its global strategy,the Company has maintained steady development in Europe,North America,Central and South America and other regions.Figure-6:Revenue Breakdown by Region Source:the Company,Guotai Junan International.The

50、 gross profit margin of large-scale die-casting machines is relatively high,and the overall gross profit margin of the Company continues to increase.The gross profit margin of large-scale die-casting machines is above 35%,which is much higher than the Companys average gross profit margin.In the past

51、 two years,as the Companys large-scale die-casting machine products are in strong demand,the Companys gross profit margin continued to increase.In the past few years,the Companys gross profit margin was stable at around 25%,and the Companys gross profit margin in FY22 reached a record high of 29.2%.

52、The Companys main competitors in the field of die-casting machines include Bhler,Haitian Metal and Yizumi,and the main competitors in the field of injection molding machines are Yizumi and Haitian International,of which Bhler and Haitian Metal are not listed.Yizumi and Haitian International have dif

53、ferent revenue structures from the Company.The former two mainly focus on the injection molding machine business,and their gross profit margin is higher than that of the Company.-30%-20%-10%0%10%20%30%40%50%-1,000 2,000 3,000 4,000 5,000 6,000FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22RevenueG

54、rowthHK$mn67.3%70.8%68.8%66.1%71.2%28.9%26.3%27.5%31.0%25.5%3.8%2.8%3.6%2.9%3.4%0.0%20.0%40.0%60.0%80.0%FY18FY19FY20FY21FY22Die-casting machineInjection moulding machineCNC01,0002,0003,0004,0005,0006,000FY12FY13FY14FY15FY16FY17FY18FY19FY20FY21FY22Mainland ChinaOverseas See the last page for disclaim

55、er Page 8 of 21 LK Tech 力劲科技(00558 HK)16 August 2022 Table_PageHeader LK Tech(00558 HK)Company Report Figure-7:The Companys Gross Profit Figure-8:The Companys Revenue Growth Rate Source:the Company,Guotai Junan International.Note:For comparison,the Companys FY22 data is displayed as 2021A.Source:the

56、 Company,Guotai Junan International.Note:For comparison,the Companys FY22 data is displayed as 2021A.The Companys profit used to be volatile,but its net profit increased significantly with the improvement of its business in the past two years.Before super-large die-casting machines were launched,the

57、 die-casting machine industry was greatly affected prices of raw materials and downstream demand.However,after the introduction of the single-piece die-casting solution,the development trend of the industry changed,and super-large die-casting machines came into strong demand.The Company was the firs

58、t in the industry to launch super-large die-casting machines,and smooth cooperation with Tesla followed.these die-casting machines were favored by downstream manufacturers and the single-piece die-casting solution was widely used.In FY22,the Companys net profit was HK$630 million(+82.0%yoy).The grow

59、th rate of net profit was significantly faster than that of revenue,mainly because both the management expense ratio and sales expense ratio decreased.The Companys ROE in FY22 was 20.3%(+4.8%yoy),and the quality of earnings further improved.It is expected that the penetration rate of single-piece di

60、e-casting solutions will continue to increase in the next few years,the market demand for super-large die-casting machines will remain strong,and the companys profitability will continue to improve.Figure-9:Raw Material Cost of Cost of Sales Figure-10:The Companys Net Profit Source:the Company,Guota

61、i Junan International.Source:the Company,Guotai Junan International.0%10%20%30%40%2014A2015A2016A2017A2018A2019A2020A2021ALK TechnologyYizumiHaitian International-30%-20%-10%0%10%20%30%40%50%2014A2015A2016A2017A2018A2019A2020A2021ALK TechnologyYizumiHaitian International66.6%66.6%84.2%85.6%68.8%75.3

62、%87.8%75.3%74.1%79.6%86.6%50%60%70%80%90%100%FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY220200400600800FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22HK$mn See the last page for disclaimer Page 9 of 21 LK Tech 力劲科技(00558 HK)16 August 2022 Table_PageHeader LK Tech(00558 HK)Company Report F

63、igure-11:The Companys ROE Source:the Company,Guotai Junan International.Note:For comparison,the Companys FY22 data is displayed as 2021A.INDUSTRY ANALYSIS The single-piece die-casting solution triggered a revolution in the production process of new energy vehicles,and the demand for super-large die-

64、casting machines rapidly increased.Teslas innovative application of single-piece die-casting solutions has changed the development trend of the industry Die casting is a form of casting technology,and its technical application is mature.Die casting is a metal casting process that is characterized by

65、 forcing molten metal under high pressure into a mold cavity.The die-casting process has the advantages of being simple,having high production efficiency,and saving on raw materials,etc.At present,materials used in the die casting industry are mainly aluminum alloys,zinc alloys,copper alloys,magnesi

66、um alloys and other alloy materials,of which aluminum alloys account for the highest proportion.According to the working principle,die-casting machines can be divided into two categories:hot-chamber die-casting machines and cold-chamber die-casting machines.According to the clamping force,die-castin

67、g machines can be divided into small machines(below 400 tonnes),medium machines(400-1,000 tonnes),large machines(1,000-6,000 tonnes)and super-large machines(over 6,000 tonnes).Figure-12:Categories of Casting Figure-13:Categories of Die-Casting Machines Source:Guangdong Wencan,Guotai Junan Internatio

68、nal.Source:the Company,Guotai Junan International.Teslas innovative application of the single-piece die-casting solution has created huge space for the industry.In 2019,Tesla cooperated with IDRA to introduce the Giga Press,a 6,000-tonne super-large die-casting machine,and took the lead in trying to

69、 simplify the body production process using die-casting technology.With the success of Teslas single-piece die-casting solution,the automotive industrys demand for super-large die-casting machines has exploded.The die-casting machine industry will show a rapid growth trend in the next 3-5 years unde

70、r strong demand for super-large die-casting machines.0%5%10%15%20%25%2014A2015A2016A2017A2018A2019A2020A2021ALK TechnologyYizumiHaitian International See the last page for disclaimer Page 10 of 21 LK Tech 力劲科技(00558 HK)16 August 2022 Table_PageHeader LK Tech(00558 HK)Company Report Figure-14:Tesla M

71、odel Y Assembly Line Figure-15:Tesla Giga Press Source:Tesla,Guotai Junan International.Source:Tesla,Guotai Junan International.The single-piece die-casting solution has many advantages,and will become the general trend A large number of aluminum alloys are used in new energy vehicles to create cond

72、itions for single-piece die casting.The body of traditional fuel vehicles are mainly made from steel.Generally,steel chassis are stamped into different parts through the stamping process,and then assembled into the body by means of welding,riveting,gluing,etc.In contrast,aluminum alloys are widely u

73、sed as the main material of the body of new energy vehicles.Aluminum alloy has a low melting point and good plasticity,and can be die-casted with a die-casting machine.In 2019,Tesla first adopted the single-piece die-casting technology and started using it on the Model Y.In 2020,Tesla purchased a 6,

74、000-tonne die-casting unit Giga Press to produce the Model Y rear chassis from the die-casting equipment manufacturer,IDRA.At present,a number of automobile manufacturers have followed this trend to purchase single-piece die-casting machines.NIO ET5 will adopt the single-piece die-casting solution,a

75、nd Xiaopeng will adopt the single-piece die-casting solution on its new pure electric vehicle in 2023.The development of new energy vehicles and the trend of lightweight vehicles will further increase the demand for die-casting machines.An important improvement that new energy vehicles offer is the

76、lightweight characteristic,and the application of light alloys such as aluminum alloys is an important way to realize reduced weight of automobiles.According to the prospectus data of Guangdong Wencan,the application of aluminum alloys in vehicle hoods,fenders,doors,rear compartments,roofs and the w

77、hole body will be further expanded in the future.It is expected that the penetration rate of lightweight components will increase,which will provide greater demand for die-casting machines.According to Tesla,the Model Y,which uses single-piece die-casting technology to manufacture the rear chassis,h

78、as reduced the body weight of the vehicle by 10%and increased overall mileage by 14%.Figure-16:Tesla Die-Casting Process Figure-17:NIO ET5 Body Part Source:Tesla,Guotai Junan International.Source:NIO,Guotai Junan International.The single-piece die-casting solution simplifies the process flow,which c

79、an improve efficiency and save cost.According to Tesla,the Model 3 body rear chassis requires 70 pieces,while the Model Y body rear chassis needed only two pieces after the single-piece die-casting solution,and has finally been optimized into a single piece.The number of welding spots was reduced fr

80、om about 700-800 to 50.And because heat treatment is no longer required,the manufacturing time has also been reduced from 1-2 hours in the traditional process to 3-5 minutes.Tesla disclosed in early 2022 that its Model Y body See the last page for disclaimer Page 11 of 21 LK Tech 力劲科技(00558 HK)16 Au

81、gust 2022 Table_PageHeader LK Tech(00558 HK)Company Report front chassis also transitioned to single-piece die casting,replacing the originally required 171 pieces with two single-piece die-casting pieces to further improve production efficiency.According to the Company,one super-large die-casting m

82、achine can produce one piece in about 2 minutes,and can produce 100,000 die-casting pieces a year.After simplifying the production process,the single-piece die-casting solution reduces the number of molds,equipment,and labor used.The saving on production equipment has led to machines using 30%less f

83、loor area.In the traditional production process,a workshop requires 200-300 production workers,while a die-casting machine only requires 20 workers,which can save a lot on labor cost.Figure-18:Model 3 Rear Chassis Figure-19:Model Y Rear Chassis Source:Tesla,Guotai Junan International.Source:Tesla,Gu

84、otai Junan International.Figure-20:Model 3 Front and Rear Chassis Figure-21:Model Y Front and Rear Chassis Source:Tesla,Guotai Junan International.Source:Tesla,Guotai Junan International.See the last page for disclaimer Page 12 of 21 LK Tech 力劲科技(00558 HK)16 August 2022 Table_PageHeader LK Tech(0055

85、8 HK)Company Report Figure-22:Model 3 Rear Chassis Figure-23:Model Y Rear Chassis Source:Tesla,Guotai Junan International.Source:Tesla,Guotai Junan International.Rapidly rising penetration rate of die-casting parts has created strong demand for super-large die-casting machines The single-piece die-c

86、asting industry chain and application of single-piece die-casting solution are growing rapidly.The upstream of the industrial chain is mainly material suppliers,die-casting machine suppliers and mold suppliers.Due to the high difficulty of processing large-scale die-casting parts,special research an

87、d development of aluminum alloy materials is required to adapt to the process of single-piece die casting.Otherwise,different vehicle manufacturers have different requirements for components,and it is generally difficult to use standardized molds.Therefore,the production of die castings requires the

88、 close cooperation of material suppliers,mold suppliers and equipment suppliers.Some vehicle manufacturers represented by Tesla directly connect with the upstream and build their own factories to produce single-piece die-casting bodies.Other vehicle manufacturers choose to cooperate with midstream d

89、ie-casters to purchase die-casting parts.With the in-depth advancement of the single-piece die-casting solution by vehicle manufacturers,it is expected that super-large die-casting machines with larger tonnage will be required in the future.Figure-24:The Single-Piece Die-Casting Industry Chain Sourc

90、e:the Company,Guotai Junan International.Teslas single-piece die-casting solution is progressing rapidly,and Chinese new energy vehicle manufacturers and die-casting parts producers have followed suit.Tesla has been aggressive on the single-piece die-casting solution.After the adoption of a 6,000-to

91、nne die-casting machine in 2020,a 9,000-tonne die-casting machine will be used in the production of its pickup model,Cybertruck.Chinese new energy automakers also plan to use the single-piece die-casting solution to produce body parts.Chinas automobile part manufacturers purchased super-large die-ca

92、sting machines to produce die-casting parts for downstream automobile manufacturers.MachinesMoldMaterialParts ManufacturingAutomobileMakersUpstreamMiddlestreamDownstream See the last page for disclaimer Page 13 of 21 LK Tech 力劲科技(00558 HK)16 August 2022 Table_PageHeader LK Tech(00558 HK)Company Repo

93、rt Table-1:Automobile Makers Progress on Single-Piece Die-Casting Solution Company Solution Tesla It realized the single-piece die casting of the Model Y rear chassis in 2020,and realized the single-piece die casting of the Model Y front chassis in 2022.Tesla is planning to realize the single-piece

94、die casting of the Cybertruck rear chassis in the future.NIO Single-piece body production was carried out through the automobile parts supplier Guangdong Wencan,and trial production of the rear chassis has been realized.Xpeng Motors Single-piece body production was carried out through the automobile

95、 parts supplier Guangdong Hongtu;Wuhan plant plan to build a single-piece die-casting process workshop.Li.Auto Detailed information not disclosed;we speculate that Li.Auto may adopt the same model as NIO and Xpeng Motors.BYD Single-piece die-casting solution cooperation with Guangdong Hongtu.Geely V

96、olvo invested about RMB7 billion to build an electric car factory in Torslanda,Sweden and adopted single-piece die-casting solution.VW The introduction of a single-piece die-casting body planned for the Trinity electric vehicle project in 2026.Source:Tesla,NIO,Xpeng,Li.Auto,BYD,Geely,VW,Guangdong We

97、ncan,Guangdong Hongtu,Guotai Junan International.At present,the penetration rate of single-piece die-casting body technology is low,but is in a stage of rapid growth.In addition to Teslas use of single-piece die-casting bodies on its Model Y models,the single-piece die-casting solutions of other car

98、 companies are still in the planning stage or experimental stage.The current penetration rate of single-piece die-casting bodies is low.With the increase in market share of new energy vehicles and the increase in penetration rate of single-piece die-casting solutions,the industrys demand for super-l

99、arge die-casting machines will continue to be strong.Die-casting machine manufacturers will benefit from broad incremental increase in demand and continue to grow.The single-piece die casting market space is expected to grow significantly in China.We forecast Chinese new energy vehicle sales will re

100、ach 5.5 million,6.88 million,8.25 million and 9.9 million in 2022-2025,respectively,and the penetration rate of single-piece die casting applied to new energy vehicles will reach 6%,12%,18%and 24%in 2022,2023,2024 and 2025,respectively.At the same time,we forecast the value of one new energy vehicle

101、 using single-piece die-casting technology will reach RMB3,000,RMB6,000,RMB8,500 and RMB1,1000.We forecast the die-casting market space will reach RMB26.14 billion in 2025,with a CAGR of 197.78%.Table-2:Market Space of Single-Piece Die-Casting Industry in China 2022E 2023E 2024E 2025E Aggregate new

102、energy car sales（thousand）5,500 6,880 8,250 9,900 YoY 25.0%20.0%20.0%Penetration rate 6%12%18%24%Aeverage selling price on die-casting parts per car(yuan)3,000 6,000 8,500 1,1000 YoY 100.0%42.0%29.0%Market space(million yuan)990 4,950 12,620 26,140 YoY 400.4%154.8%107.1%Source:Guotai Junan Internati

103、onal.See the last page for disclaimer Page 14 of 21 LK Tech 力劲科技(00558 HK)16 August 2022 Table_PageHeader LK Tech(00558 HK)Company Report COMPETITION ANALYSIS The Company has first-mover advantages,and it continues to make breakthroughs on large tonnage die-casting machines.The threshold in research

104、 and development of super-large die-casting machines is high,and the Company has accumulated rich experience The threshold for research and development of super-large die-casting machines is high,resulting in few global competitors.The single-piece die-casting solution requires large tonnage die-cas

105、ting machines,and the Company has a fast pace in the research and development of super-large die-casting machines.In 2019,the Company took the lead in launching a 6,000-tonne die-casting machine,and was the only die-casting machine manufacturer in the world that could provide super-large die-casting

106、 machines at that time.At present,the Company has developed a 9,000-tonne die-casting machine and is developing a 12,000-tonne die-casting machine.There are only a few equipment manufacturers in the world that can produce super-large die-casting machines.Except for the Company,only Haitian Metal,Yiz

107、umi and Swiss Bhler can produce super-large die-casting machines of more than 6,000 tonnes.Table-3:Competitors on Super-Large Die-Casting Machines Company Progress of Development LK Technology Delivered several 6,000-7,000-tonne die-casting machines;Launched 9,000-tonne die-casting machines;Developi

108、ng 12,000-tonne die-casting machines.Haitian Metal Delivered 6,600-tonne and 8,800-tonne die-casting machines.Yizumi Delivered 7,000-tonne die-casting machines.Bhler Delivered 6,100-tonne die-casting machines.Source:Haitian Metal,Yizumi,Bhler,the Company,Guotai Junan International.Large capital inve

109、stment,long commissioning cycle and high trial and error cost of super-large die-casting machines hinder the entry of new competitors.The cost to manufacture small-and medium-sized die-casting machines under 1,000 tonnes is low;the selling price ranges from hundreds of thousands to millions of yuan.

110、With the increase in demand for higher clamping force,selling price of large-scale die-casting machines has increased significantly.The selling price of a 6,000-tonne die-casting machine is more than RMB50 million,and the price of a 9,000-tonne die-casting machine exceeds RMB100 million.It is usuall

111、y necessary to carry out debugging on super-large die-casting machines to achieve high production yield.The research and development process of super-large die-casting machines require high capital cost and time cost.Therefore,the possibility of new competitors entering the market is low,and the ind

112、ustry competition pattern may remain stable in the short term.The company has first-mover advantages,and close cooperation with Tesla will continue to stabilize its position in the industry The Company has been deeply engaged in the field of die-casting machines for many years,and has technical and

113、brand advantages.The Company has more than 40 years of experience in the development and production of die-casting machines,and is in a leading position in the industry.In 2020,the Companys market share in Chinas cold chamber die-casting machines market was close to 50%.Italian IDRA,a subsidiary acq

114、uired by the Company,is an old European die-casting machine manufacturer with a history of 80 years.Due to IDRAs excellent reputation and strength,its Giga Press was the first super-large die-casting machine exclusively purchased by Tesla.See the last page for disclaimer Page 15 of 21 LK Tech 力劲科技(0

115、0558 HK)16 August 2022 Table_PageHeader LK Tech(00558 HK)Company Report Figure-25:Chinas Cold Chamber Die-Casting Machine Market Share Source:Intelligence Research Group,Guotai Junan International.The company took the lead in super-large die-casting machines and accumulated a lot of technical experi

116、ence.With Teslas successful application of the single-piece die-casting solution,many equipment manufacturers have entered into the production of super-large die-casting machines.But so far,only the Company has successfully mass-produced multiple super-large die-casting machines and put them into us

117、e.The Company has accumulated rich experience in the development and production of super-large die-casting machines,which can better meet the needs of automobile manufacturers.For super-large die-casting machines,the technical theory is only the basis for research and development,and there are many

118、engineering problems in its application that need to be solved step by step.The accumulation of engineering experience can help the Company to better cope with these problems.For Chinese new energy car manufacturers,they may be more willing to choose the Companys products to reduce investment risks.

119、At present,the Companys market share in the field of super-large die-casting machines exceeds 90%,and the Company has seized opportunities to work with a large number of high-quality customers.In the future,even if competitors expand production capacity and enter the market,it will be difficult to s

120、hake the companys close relationship with its customers.The company cooperates closely with Tesla,and has the opportunity to continue to make breakthroughs in single-piece die casting in the future.Tesla has developed many innovative ideas in single-piece die casting,which are gradually being realiz

121、ed through super-large die-casting machines developed by the Company.After Tesla utilized single-piece die casting for the front and rear chassis of the Model Y in 2022,they have continued to achieve technological breakthroughs in other directions.Tesla has purchased a 9,000-tonne die-casting machin

122、e from the Company to implement its single-piece die casting for the rear chassis of its pickup model,Cybertruck.Through a multi-step strategy,Tesla has continuously improved the penetration rate of the single-piece body.Its ultimate goal is to realize the single-piece die casting of the entire vehi

123、cle body.This plan will require at least 10,000-tonne super-large die-casting machines,which would require higher technical requirements.The Company maintains close cooperation with Tesla and has taken the lead in the development of single-piece die-casting machines.In the process of realizing singl

124、e-piece die casting of entire vehicle bodies,the Company will have opportunities to develop more types of super-large die-casting machines to further create larger market space.GROWTH PROSPECT ANALYSIS The penetration rate of single-piece die casting has increased,and Tesla and there is strong deman

125、d for large-scale die-casting machines from Chinese car manufacturers.Tesla will devote more resources to single-piece die casting,and the demand for super-large die-casting machines will remain strong Teslas Model Y is its most popular vehicle,and the penetration rate of single-piece die casting of

126、 vehicle bodies will continue to increase.Among the four models currently produced by Tesla,Model S and Model X sales account for a small proportion,and do not use single-piece die casting at present.We estimate that other Tesla models may gradually adopt single-piece die casting following the Model

127、 Y.According to the existing process,a Model Y requires two super-large die-casting 49%14%8%5%3%21%LK TechnologyYizumiToshibaToyoBuhlerOthers See the last page for disclaimer Page 16 of 21 LK Tech 力劲科技(00558 HK)16 August 2022 Table_PageHeader LK Tech(00558 HK)Company Report machines to produce the f

128、ront and rear chassis,respectively.In the future,Tesla may use a single-piece die-casting machine to produce the Model Y middle frame,which will increase demand for an extra large die-casting machine.The Cybertruck may be mass produced in 2023;demand for 9,000-tonne die-casting machines could contri

129、bute significantly revenue to the Company.Tesla earlier announced that it will launch its pickup model,Cybertruck,in 2023,and will use a single-piece die-casting solution to manufacture the rear chassis.Pickup models are among the best-selling models in North America,and we expect Cybertruck sales i

130、n North America to continue to grow at a high rate.But given the low acceptance of pickups in Asia Pacific and Europe,the Cybertruck may represent a smaller percentage of Teslas total sales.The Cybertruck may replicate the Model Ys production route,first incorporating single-piece die casting of the

131、 rear chassis,and then the front chassis.At that time,a Cybertruck will require two 9,000-tonne die-casting machines to produce the front and rear chassis.Consider that the Cybertruck body is large and the process may be difficult,we assume that the die-casting capacity of the 9,000-tonne machine wi

132、ll be lower than that of a 6,000-tonne machine.Table-4:Tesla-Demand for 6,000-Tonne Machines 2021A 2022E 2023E 2024E 2025E Sales of Tesla1 930,422 1,354,892 2,153,864 2,617,041 3,062,077 YoY 82.5%45.6%58.7%21.9%16.8%Sales of Model Y(Estimate)392,458 781,267 1,431,669 1,730,149 2,040,082 YoY 328.5%99

133、.2%83.1%21.0%15.0%Sales of other models 538,422 573,625 722,195 886,892 1,021,995 Penetration rate of other models 0 0 10%25%55%Units need per car 1 2 2 3 3 Production capacity 100,000/y 100,000/y 100,000/y 110,000/y 110,000/y Total machines demand 6 16 29 51 66 New machines demand2 10 13 22 15-Sour

134、ce:Tesla,Guotai Junan International.Note:1.Cybertruck sales are not included.2.We assume that the new demand in the current year would have been produced in the previous year.Table-5:The Production of Cybertruck Needs 9,000-Tonne Machines 2021A 2022E 2023E 2024E 2025E Sales of Cybertruck 9,500 14,50

135、0 21,000 YoY n.a.52.6%44.8%Units need per car 1 2 3 Production capacity 80,000/y 80,000/y 80,000/y Total machines demand 1 2 3 New machines demand 1 1 1 1-Source:Tesla,Guotai Junan International.Note:1.Cybertruck sales are not included,2.We assume that the new demand in the current year would have b

136、een produced in the previous year.Chinese new energy vehicle manufacturers are adopting single-piece die-casting solutions,and the penetration rate is expected to rise from 2023 Chinese new energy vehicle manufacturers are aggressively investing in single-piece die-casting solutions,and demand for s

137、uper-large die-casting machines has exploded.After Tesla successfully incorporated single-piece die casting,Chinese new energy vehicle manufacturers actively followed up and deployed single-piece die-casting solutions.In addition to the new carmakers NIO,Xpeng,and Li.Auto,traditional carmakers are a

138、lso exploring single-piece die-casting solutions with the Company.We believe that in 2023,new carmakers may take the lead in single-piece die casting of vehicle bodies.The penetration rate of single-piece die-casting may gradually increase from 2023.See the last page for disclaimer Page 17 of 21 LK

139、Tech 力劲科技(00558 HK)16 August 2022 Table_PageHeader LK Tech(00558 HK)Company Report China has become the largest market for new energy vehicle sales,and the Chinese market may contribute major demand in the future.According to a forecast from the China Automobile Association,sales of new energy vehic

140、les in China will exceed 5 million in 2022,making China the largest new energy vehicle market in the world.Single-piece die casting is still in the early stages in the Chinese market.In the future,with the increase in penetration rate of single-piece die casting,demand for super-large die-casting ma

141、chines will remain strong.Chinese new energy vehicle manufacturers may expand the application scope of single-piece die-casting solutions,which will further increase market demand for die-casting machines.In addition to the front and rear chassis,the Company is discussing the application of single-p

142、iece die casting on other components with automobile manufacturers and component manufacturers.The Company expects that 8,000-tonne die-casting machines can be applied to the mid-frame of automobiles,and 2,000-3,000-tonne die-casting machines can be used for components of the three electric systems

143、in automobiles(the motor,battery,and electronic controls);12,000-tonne die-casting machines can be used to manufacture battery packs;4,500-6,000-tonne die-casting machines can be used to produce other components such as subframes,shock absorber towers,etc.The Company and its customers are jointly de

144、veloping and testing single-piece die-casting solutions for these parts.We expect that single-piece die casting for these parts may take 1-1.5 years to achieve mass production,and will contribute to greater demand from 2024.Table-6:Chinese New Energy Automobile Makers 2021A 2022E 2023E 2024E 2025E S

145、ales of Chinese new energy vehicle 3,520,000 5,500,000 6,880,000 8,250,000 9,90,000 YoY 160.0%42.0%44.6%42.2%39.8%Penetration rate1 0 6%12%18%24%The Companys market share 80%80%80%80%Front,rear chassis Units need per car 1 1.5 2 3 Production capactity 100,000/y 100,000/y 110,000/y 110,000/y Total ma

146、chines demand(6,000-8,000-tonne)3 14 22 35 New machines demand 2 3 11 8 13 Middle frame Units need per car 0.5 1 Production capactity 100,000/y 100,000/y Total machines demand(8,000-10,000-tonne)6 20 New machines demand 2 6 14 Battery pack Units need per car 0.5 1 1.5 2 Production capactity 140,000/

147、y 140,000/y 150,000/y 150,000/y Total machines demand(80,000-12,000-tonne)2 5 12 26 New machines demand 2 2 3 7 14 Subframe,shock absorber and others Units need per car 0.5 1 2 Production capactity 100,000/y 100,000/y 100,000/y Total machines demand(6,000-8,000-tonne)4 12 39 New machines demand 2 4

148、8 27 Total new machines demand 15 28 56 84 Source:The Company,Guotai Junan International.Note:1.The sales of Tesla is not included.2.We assume that the new demand in the current year would have been produced in the previous year.See the last page for disclaimer Page 18 of 21 LK Tech 力劲科技(00558 HK)16

149、 August 2022 Table_PageHeader LK Tech(00558 HK)Company Report Figure-26:The Forecast of Annual Demand on the Companys Super-Large Die-Casting Machines Source:Guotai Junan International.EARNINGS FORECASTS AND RECOMMENDATION Core assumptions Die-casting machine business Super-large die-casting machine

150、 sales will continue to maintain steady growth.Under the trend of single-piece die casting,the business of super-large die-casting machines will continue to maintain strong performance and account for a larger proportion of the die-casting machine business.The gross profit margin of super-large die-

151、casting machines is high,which will continue to improve the Companys financials.Super-large die-casting machines have higher unit prices and higher gross margin,thus improving the Companys overall gross margin.The Companys operating profit will explode significantly under the dual effects of perform

152、ance growth and gross profit margin improvement.It is estimated that the companys die-casting machine revenue in FY2023-FY2025 will be HK$5,656 million/HK$8,122 million/HK$11,431 million,with growth rate of 48.2%/43.6%/40.7%,respectively.Injection molding machine business Under strong performance of

153、 the die-casting machine business,the contribution of injection molding machines business will shrink.It is estimated that the revenue of the Companys injection molding machine business in FY2023-FY2025 will be HK$1,451 million/HK$1,515 million/HK$1,578 million,representing year-on-year increase of

154、6.3%/4.4%/4.2%,respectively.CNC business Under strong performance of die-casting machines business,contribution from CNC business will shrink.It is estimated that revenue of the companys injection molding machine business in FY2023-FY2025 will be HK$195 million/HK$214 million/HK$235 million,respecti

155、vely;year-on-year increase of 7.8%/9.6%/10.0%,respectively.336886.7%100.0%50.0%0%20%40%60%80%100%120%007080902021A2022E2023E2024EChina automobile makers-demandTesla-demandGrwoth rate See the last page for disclaimer Page 19 of 21 LK Tech 力劲科技(00558 HK)16 August 2022 Table_PageH

156、eader LK Tech(00558 HK)Company Report Table-7:Core Forecast Assumptions FY2021A FY2022A FY2023E FY2024E FY2025E Revenue by segment(HK$mn)Die-casting machine 2,657 3,816 5,656 8,122 11,430 injection molding machines 1,246 1,365 1,451 1,515 1,578 CNC 118 181 195 214 235 Operating margin by segment Die

157、-casting machine 16.1%16.9%17.8%18.0%18.2%injection molding machines 10.5%11.1%11.1%11.1%11.1%CNC-12.8%9.2%9.2%9.4%9.6%Key financial data(HK$mn)Revenue 4,021 5,362 7,302 9,851 13,244 Gross profit 1,115 1,566 2,188 3,050 4,191 EBIT 514 799 1,167 1,634 2,266 Shareholders profit 344 626 913 1,291 1,804

158、 Basic EPS(HK$)0.262 0.456 0.666 0.942 1.316 Source:The Company,Guotai Junan International.Earnings forecasts and recommendation We forecast that the Companys revenue in FY23-FY25 will be HK$7,302 million/HK$9,851 million/HK$13,244 million,respectively,yoy growth rate of 36.2%/34.9%/34.4%.Shareholde

159、rs profit will be HK$913 million/HK$1,291 million/HK$1,804 million,with a growth rate of 45.9%/41.4%/39.7%and PER of 21x/15x/10 x,respectively.We give an investment rating of Buy,and a TP of HK$18.84.Our TP represents PER 28.6x/20.2x/14.5x in FY23-FY25 and PBR 5.1x in FY23,and the target market valu

160、e is HK$25.9 billion,with an upside of 39.1%.RISK FACTORS The penetration rate of the single-piece die-casting solution may be lower than expected The single-piece die-casting solution has only taken less than 3 years from launch to application,and the technical maturity may be insufficient.If other

161、 car companies cannot improve their production yield rate in the short term,it may drag down the penetration rate of single-piece die casting.In addition,safety of single-piece die casting it yet to be proven,which may affect the markets acceptance of single-piece die casting.Expected risks from new

162、 energy vehicle sales may be lower than expected If the future growth rate of new energy vehicles is lower than our forecast,demand for super-large die-casting machines from new energy vehicle companies may decrease accordingly,which will affect the Companys revenue and profits.Market competition ma

163、y intensify The single-piece die-casting solution has driven the revolution of the manufacturing process of vehicle bodies,and market demand for single-piece die-casting equipment is strong.However,the Company is limited by its production capacity and cannot meet the entire needs of downstream manuf

164、acturers in the short term.Other die-casting machine manufacturers have also increased their investment in die-casting machines.In the future,as numerous die-casting machine companies deliver machines,the supply pattern of super-large die-casting machines may change,which in turn may affect the Comp

165、anys gross profit margin.See the last page for disclaimer Page 20 of 21 LK Tech 力劲科技(00558 HK)16 August 2022 Table_PageHeader LK Tech(00558 HK)Company Report Financial Statements and Ratios Table_IncomeStatement Income Statement Year end 31 March(HK$m)2021A 2022A 2023F 2024F 2025F Total revenue 4,02

166、1 5,362 7,302 9,851 13,244 Cost of sales (2,906)(3,796)(5,125)(6,817)(9,076)Gross profit 1,115 1,566 2,177 3,034 4,168 Other income 75 103 125 144 196 Other gain 59 39 77 95 107 Selling and distribution expenses (366)(481)(654)(883)(1,187)General and administrative expenses (344)(430)(586)(791)(1,06

167、3)Operating profit 515 793 1,139 1,599 2,220 Finance income and costs-net (57)(27)(26)(30)(25)Profit before tax 458 766 1,113 1,569 2,195 Income tax (114)(140)(209)(291)(410)Profit after tax 344 626 904 1,278 1,785 Non-controlling interest 0 0 0 0 0 Shareholders profit/loss 344 626 904 1,278 1,785 B

168、asic EPS(HK$)0.262 0.456 0.659 0.932 1.302 Cash Flow Statement Year end 31 March(HK$m)2021A 2022A 2023F 2024F 2025F Profit before tax 458 766 1,113 1,569 2,195 Depreciation&amortization 134 146 152 179 207 Changes in working capital 268-570-489-914-998 Income tax paid-134-143-226-310-423 Other adjus

169、tments 45-16-13-11-19 Cash from operating activities 771 183 537 513 963 Capital expenditure-263-462-429-467-510 Other investing activities 35-140-16-16-16 Cash from investing activities-229-602-444-483-526 Net changes in borrowings-568-86 65 69-49 Dividends paid-36-120-164-244-343 Other financing a

170、ctivities-102 602 1 1 1 Cash from financing activities-706 396-98-174-390 Cash at beg of year 714 588 577 428 475 Net changes in cash-163-23-5-144 48 Effect of exchange rate changes 38 11 0 0 0 Cash at End of Year 588 577 572 428 475 Source:the Company,Guotai Junan International.Balance Sheet Year e

171、nd 31 March(HK$m)2021A 2022A 2023F 2024F 2025F Intangible assets 15 15 16 17 18 Property,plant and equipment 1,174 1,477 1,744 2,021 2,311 Investment properties 343 652 691 732 776 Right-of-use assets 357 409 433 459 487 Others 545 707 775 881 1,011 Total non-current assets 2,076 2,850 3,226 3,651 4

172、,116 Cash&cash equivalents 588 577 572 428 475 Inventories 1,147 1,713 1,970 2,532 3,305 Trade and bills receivables 1,388 2,018 2,536 3,572 4,738 Others 279 441 544 735 978 Total current assets 3,402 4,749 5,622 7,267 9,496 Trade and bills payables,other paybles,deposits and accruals 1,679 2,467 2,

173、874 3,797 5,037 Borrowings 1,089 878 931 987 947 Others 2,669 60 68 78 88 Total current liabilities 2,808 3,406 3,874 4,861 6,073 Borrowings 77 2,890 3,324 3,257 3,062 Other Payables and deposit 62 96 694 652 613 Others 70 633 672 717 765 Total non-current liabilities 209 3,619 4,690 4,627 4,440 Tot

174、al liabilities 3,017 7,025 8,563 9,488 10,513 Share capital 119 120 120 120 120 Share reserves and retained earnings 2,342 11,547 12,508 13,876 15,505 Total shareholders equity 2,461 11,667 12,628 13,996 15,625 Minority interest 0 0 0 0 0 Total equity 2,461 11,667 12,628 13,996 15,625 Financial Rati

175、os Year end 31 March 2021A 2022A 2023F 2024F 2025F Gross margin(%)27.7 29.2 29.8 30.8 31.5 Operating margin(%)12.8 14.8 15.6 16.2 16.8 Net margin(%)8.5 11.7 12.4 13.0 13.5 ROE(%)15.5 20.3 22.2 25.8 28.8 ROA(%)7.4 10.0 11.4 13.3 14.9 Dividend payout ratio(%)21.3 22.0 22.0 22.0 22.0 Net gearing ratio(

176、%)24.7 14.4 13.6 15.0 10.5 See the last page for disclaimer Page 21 of 21 LK Tech 力劲科技(00558 HK)16 August 2022 Table_PageHeader LK Tech(00558 HK)Company Report Company Rating Definition The Benchmark:Hong Kong Hang Seng Index Time Horizon:6 to 18 months Rating Definition Buy 买入 Relative Performance1

177、5%;or the fundamental outlook of the company or sector is favorable.Accumulate 收集 Relative Performance is 5%to 15%;or the fundamental outlook of the company or sector is favorable.Neutral 中性 Relative Performance is-5%to 5%;or the fundamental outlook of the company or sector is neutral.Reduce 减持 Rela

178、tive Performance is-5%to-15%;or the fundamental outlook of the company or sector is unfavorable.Sell 卖出 Relative Performance 5%;or the fundamental outlook of the sector is favorable.Neutral 中性 Relative Performance is-5%to 5%;or the fundamental outlook of the sector is neutral.Underperform 跑输大市 Relat

179、ive Performance-5%;or the fundamental outlook of the sector is unfavorable.DISCLOSURE OF INTERESTS(1)The Analysts and their associates do not serve as an officer of the issuer mentioned in this Research Report.(2)The Analysts and their associates do not have any financial interests in relation to th

180、e issuer mentioned in this Research Report.(3)Except for SF REIT(02191 HK),JINSHANG BANK(02558 HK),BANKOFZHENGZHOU(06196 HK),XPENG-W(09868 HK),Guotai Junan and its group companies do not hold equal to or more than 1%of the market capitalization of the issuer mentioned in this Research Report.(4)Guot

181、ai Junan and its group companies have not had investment banking relationships with the issuer mentioned in this Research Report within the preceding 12 months.(5)Guotai Junan and its group companies are not making a market in the securities in respect of the issuer mentioned in this Research Report

182、.(6)Guotai Junan and its group companies have not employed an individual serving as an officer of the issuer mentioned in this Research Report.There is no officer of the issuer mentioned in this Research Report associated with Guotai Junan and its group companies.DISCLAIMER This Research Report does

183、 not constitute an invitation or offer to acquire,purchase or subscribe for securities by Guotai Junan Securities(Hong Kong)Limited(Guotai Junan).Guotai Junan and its group companies may do business that relates to companies covered in research reports,including investment banking,investment service

184、s,etc.(for example,the placing agent,lead manager,sponsor,underwriter or invest proprietarily).Any opinions expressed in this report may differ or be contrary to opinions or investment strategies expressed orally or in written form by sales persons,dealers and other professional executives of Guotai

185、 Junan group of companies.Any opinions expressed in this report may differ or be contrary to opinions or investment decisions made by the asset management and investment banking groups of Guotai Junan.Though best effort has been made to ensure the accuracy of the information and data contained in th

186、is Research Report,Guotai Junan does not guarantee the accuracy and completeness of the information and data herein.This Research Report may contain some forward-looking estimates and forecasts derived from the assumptions of the future political and economic conditions with inherently unpredictable

187、 and mutable situation,so uncertainty may contain.Investors should understand and comprehend the investment objectives and its related risks,and where necessary consult their own financial advisers prior to any investment decision.This Research Report is not directed at,or intended for distribution

188、to or use by,any person or entity who is a citizen or resident of or located in any jurisdiction where such distribution,publication,availability or use would be contrary to applicable law or regulation or which would subject Guotai Junan and its group companies to any registration or licensing requirement within such jurisdiction.2022 Guotai Junan Securities(Hong Kong)Limited.All Rights Reserved.27/F.,Low Block,Grand Millennium Plaza,181 Queens Road Central,Hong Kong.Tel.:(852)2509-9118 Fax:(852)2509-7793 Website:.hk