【行业研究报告】力劲科技-股价大涨点评：大型压铸机业务保持快速增长，传统业务有望复苏

Thelargedie-castingmachinebusinessofLKTechnology("LKTech",orthe"Company")maintainedrapid
growth;long-termgrowthlogicissolid.In1HFY23,thegrowthrateoflargedie-castingmachines(1,000t-5,000t)
exceeded40%,andthemarginalratiowasaround30%-35%;thegrowthrateofsuper-largedie-castingmachines
(>6,000t)exceeded50%,andthemarginalratioexceeded40%;andrevenuefromlargeandsuper-largedie-casting
machinesaccountedformorethan70%ofrevenueofthedie-castingmachinebusiness.Webelievethatasthe
Company’slargedie-castingmachinebusinesswillcontinuetogrowinthefuture,theimpactfromsmalldie-casting
Company’slargedie-castingmachinebusinesswillcontinuetogrowinthefuture,theimpactfromsmalldie-casting
machinebusinessandinjectionmoldingmachinebusinessontheCompanywillcontinuetodecrease;weexpectthe
Company'sgrossprofitmargintocontinuetoimprove.Withtheextremelylowpenetrationrateofsingle-piece
die-castingsolution,China'snewenergyvehicleindustrywillmaintainstrongdemandforlargeandsuper-large
die-castingmachinesinthenextfewyears;theCompany'slong-termgrowthlogicissolid.
TheCompany'straditionalbusinessmayrecoveralongsideeconomicrecovery,andtheCompany's
short-termperformanceisexpectedtoimprove.RevenueandgrossprofitoftheCompany'straditionalbusinesses
suchasinjectionmoldingmachinesandsmalldie-castingmachinesexperiencedsignificantdeclinein1HFY23.
However,withadjustmentsinChina'smacropolicyandtheincreaseofcapitalexpenditureofthemanufacturing
industry,overalldownstreamdemandwillgraduallyimprove.Revenueandgrossprofitoftheinjectionmolding
machinebusinessandsmalldie-castingmachinebusinessin2HFY23mayincrease,improvingtheCompany’s
short-termperformance.
PerformanceoftheCNCmachinetoolbusinesshasbeenoutstandingandwillexpandintonewgrowth
space.TheCompany'sCNCmachinebusinessrevenuein1HFY23wasHK$150million(+52.8%),andoperating
profitmarginwas11.9%(+17.4ppts).InSeptember,theCompanyreleasedtheMCG5five-axisgantrymachineto
optimizedie-castingpartsprocessing.TheCompany'sfive-axisgantrymachines,supportingequipmentfor
super-largedie-castingmachines,willalsobenefitfromtheincreaseinthepenetrationrateofsingle-piecedie-casting
solutions,andwillmaintainrapidgrowthtogetherwithsuper-largedie-castingmachines.
Investmentsuggestion:Webelievethatthelong-termgrowthlogicofLKTechissolid,andshort-termperformance
istoimprove.WemaintaintheCompany'sratingas"Buy",andmaintainTPofHK$11.90.Weforecastearningsper
shareinFY23/FY24/FY25tobeHK$0.437,HK$0.596,andHK$0.773,respectively.OurTPrepresents27.3x/20.0x/
15.4xFY23-FY25PEratio.