Dongxing Securities: Maintains "recommend" rating for Ningbo Gaofa, actively expanding international market.

Dongxing Securities research report points out that Ningbo Gaofa plans to establish overseas subsidiaries to actively expand international markets. According to the announcement, this investment is based on market conditions and the overseas capacity layout needs of customer projects, in order to implement the "going global" strategy. The company's investment in building factories in Morocco will help improve the company's global industrial layout and enhance the company's overall strength. Currently, the company's main business still focuses on the domestic market, with the 2024 annual report showing that the company's main operating revenue all comes from the domestic market. The foreign market is still blank, and the establishment of overseas subsidiaries will break this situation, bringing new growth opportunities for the company. With excellent cost and expense control capabilities, the company maintains a stable profitability. The company's existing product market share maintains a leading position in the industry, and continues to explore joint venture and overseas markets, with promising prospects. The company has sufficient cash reserves and is optimistic about its long-term development. It is expected that the company's net profit attributable to shareholders will be 221 million yuan in 2025, 256 million yuan in 2026, and 299 million yuan in 2027, corresponding to EPS of 0.99 yuan, 1.15 yuan, and 1.34 yuan, respectively. Based on the current stock price corresponding to PE of 16x, 14x, and 12x, the rating is maintained as "recommended".