Group 1: Investor Relations Activities - The company conducted a series of investor relations activities from February 10 to February 21, 2025, including phone conferences and on-site research [9] - A total of 150 participants attended various strategy meetings, showcasing significant interest from multiple investment firms [7] - The company engaged with 31 participants in a strategy meeting on February 11, highlighting the diverse investor base [2] Group 2: Product Development and Market Strategy - The company aims to achieve over 20% market share in PLC products, which are considered strategic for automation equipment [11] - The company is actively developing components for humanoid robots, including motors and actuators [12] - Recent acquisitions, such as Shanghai Lain and Korean SBC, have enhanced the company's precision machinery capabilities, with successful applications in various downstream sectors [13] Group 3: New Energy Vehicle Initiatives - The subsidiary, United Power, is focusing on technological innovations in core components for new energy vehicles, preparing to expand into intelligent automotive technologies [14] - The company is committed to integrating core technologies related to chassis domains to support future growth in the new energy vehicle sector [14] Group 4: Solutions and Customer Engagement - The company provides comprehensive "Industrial Control + Process" solutions tailored to meet diverse customer needs, enhancing product quality and production efficiency [9] - Solutions offered include a complete package of products such as PLCs, drives, industrial robots, and precision machinery, aimed at optimizing customer operations [9]

定量研究 | 定量研究专题报告 证券研究报告 报告日期 2025 年 02 月 23 日 分析师：郑兆磊 S0190520080006 zhengzhaolei@xyzq.com.cn 相关研究 【兴证金工】布局" 硬科技"突围新思路， 科创板全能选手来袭—鹏华上证科创板 综合 ETF 盛大发行中-2025.02.19 【兴证金工】浙江国资创新崛起，杭州概 念领跑市场—浙江国资 ETF 投资价值分 析-2025.02.13 【兴证金工】政策春风助力，把握科创板 块投资机遇-2025.02.12 政策支持不断落地，科技东风带来民企经济新启程— —弘毅远方国证民企领先 100ETF 投资价值分析 投资要点： 风险提示：基金投资有风险，本报告不代表投资建议；基金经理历史业绩不代表未来， 请投资者知悉。 | 一、 | 支持政策不断落地，科技东风带来民企经济新启程 | 4 | | --- | --- | --- | | （一） | 民营企业是中国经济的重要支撑 | 4 | | （二） | 支持政策不断落地，民营企业迎来历史机遇期 | 5 | | （三） | 民营企业在中美科技竞争前沿一线的重要性再度凸显 | 6 | | ...

Investment Rating - The investment rating for the company is "Accumulate" (maintained) [6] Core Views - The launch of the iFA platform marks a significant advancement in domestic industrial automation, enhancing project development and maintenance efficiency [1][2] - The Chinese industrial software market is growing, with the iFA platform positioned to compete with Siemens' software, facilitating hardware localization and supporting the company's growth in automation and new business areas like humanoid robots [2][4] Financial Performance - In Q3 2024, the company achieved a revenue of 9.21 billion yuan, a year-on-year increase of 20%, while the net profit attributable to shareholders was 1.24 billion yuan, a decrease of 1% [3] - For the first three quarters of 2024, total revenue reached 25.4 billion yuan, up 26% year-on-year, with a net profit of 3.35 billion yuan, reflecting a 1% increase [3] Business Segments - General Automation: Revenue for the first three quarters was 10.9 billion yuan, a 4% increase year-on-year, with significant contributions from various product lines [4][10] - New Energy Vehicles: Revenue reached 10.4 billion yuan, a remarkable 96% increase year-on-year, indicating strong growth potential [10] - Smart Elevators: Revenue was 3.6 billion yuan, down 6% year-on-year, while rail transit revenue was 340 million yuan, down 9% [10] Growth Drivers - The general automation market in China is projected to reach 311.5 billion yuan in 2023, with a growth rate of 11%, indicating substantial growth potential [4] - The company is positioned as a domestic leader in core product markets, with a clear and stable development path supported by manufacturing recovery and product expansion [4][11] Earnings Forecast - Revenue projections for 2024-2026 are 37.6 billion yuan, 48.2 billion yuan, and 58.0 billion yuan, with year-on-year growth rates of 24%, 28%, and 21% respectively [11] - Net profit forecasts for the same period are 4.8 billion yuan, 5.8 billion yuan, and 6.5 billion yuan, with growth rates of 0% in 2024, 22% in 2025, and 13% in 2026 [11]

Summary of Conference Call Records Company Overview - The company operates in three main segments: Industrial Automation (50% of revenue), New Energy (33%), and Elevators (17%) [2][29][30] - The Industrial Automation segment is the largest contributor to gross profit, accounting for nearly 90% of the company's total gross profit [3][29] Industry Performance - The overall performance of the industrial automation industry has been relatively flat, with a slight recovery noted in December of the previous year and January of the current year [1] - Despite a decrease in working days due to the early Lunar New Year, orders for tools and machine tools showed positive growth [1] - The automation industry is projected to face challenges in 2024, with a general expectation of subdued performance [4][20] Financial Performance - Revenue growth has been significant, but profit growth remains in single digits, primarily due to product mix issues, particularly in the New Energy segment [3] - The company’s profit forecasts for 2024, 2025, and 2026 are approximately 4.9 billion, 5.77 billion, and 6.8 billion respectively [3] - The company has consistently outperformed the market, with Industrial Automation revenue growth rates of 43%, 21%, and 17% over the past three years [4] Market Dynamics - The industrial automation market is estimated to reach nearly 300 billion, with the company capturing about 300 billion of that market [11][20] - The market for PLCs (Programmable Logic Controllers) is significant, with a total market size of approximately 165 billion in 2023 [13] - The company has a competitive edge in the servo market, with a market share of 28% in general servos, which is higher than its competitors [16] New Energy Sector - The New Energy vehicle market is rapidly growing, with the company’s revenue from this segment increasing significantly, reaching 9.3 billion in 2023 [22][23] - The company’s electric control products hold a market share of 11%, ranking second overall in the New Energy sector [22] Elevator Industry - The elevator market in China is valued at over 490 billion, with a domestic market share exceeding 60% [27] - The company’s elevator segment is expected to see growth driven by replacement demand, as many elevators are nearing the end of their operational life [26][29] Investment Outlook - The company is currently viewed as being at a low valuation point, with a projected PE ratio of around 32 for 2025, which is considered low compared to historical averages [30] - The expectation is for gradual recovery in revenue and profit growth, leading to a potential increase in valuation [30] Key Takeaways - The company is well-positioned in the Industrial Automation and New Energy sectors, with strong growth potential despite current market challenges [2][3][29] - The elevator segment is stable and expected to provide consistent cash flow, while the New Energy segment is emerging as a significant growth driver [29] - Overall, the company’s diversified portfolio across these sectors positions it favorably for future growth and recovery in profitability [30]

Group 1: Investor Relations Activities - The company conducted various investor relations activities from January 3 to January 21, 2025, including site visits, strategy meetings, and conference calls, involving a total of 27 to 52 participants in different sessions [1][2][3][4][5][6][7][8][9][10] - Notable participants included major funds and investment firms such as Fidelity Management, BlackRock, and Citadel, indicating strong interest from institutional investors [2][3][4][5][6][7][8][9][10] Group 2: Business Performance and Market Outlook - The company's industrial automation orders showed recovery in Q4 2024, particularly in traditional sectors like 3C, machine tools, and food and beverage, with a structural demand for electric machinery driving growth [3][4][5] - The government’s policy on large-scale equipment updates is expected to support demand for the company's automation-related business, enhancing order intake [5][6] Group 3: Strategic Initiatives - The company introduced the "Two Improvements, Four Savings, and Double Safety" initiative aimed at enhancing efficiency and safety while reducing energy and material costs [4][5] - The focus on digital business is to leverage over 20 years of experience in automation to enhance production and service management, providing a competitive edge in the market [8][9] Group 4: Mergers and Acquisitions - The company is pursuing mergers and acquisitions in areas closely aligned with its core business, including automation, precision machinery, and industrial software, to build a comprehensive industrial ecosystem [9][10]

Investment Rating - The report assigns a "Buy" rating for the company, indicating a potential upside of 15% to 35% [7][9]. Core Insights - The company’s subsidiary, United Power, is set to issue up to 710 million shares to raise approximately 4.86 billion RMB for the production of core components for new energy vehicles [7]. - United Power has achieved profitability, recording a net profit of 190 million RMB in 2023 and 280 million RMB in the first half of 2024, indicating continuous growth [7]. - The company is positioned as a leader in the electric drive system sector for new energy vehicles, with significant partnerships with major automotive manufacturers [7]. - Revenue for United Power has shown a compound annual growth rate (CAGR) of 79% from 2021 to 2023, with a projected revenue of 6.06 billion RMB in the first half of 2024 [7]. - The report anticipates further growth in net profit, projecting 4.9 billion RMB for 2024, 5.8 billion RMB for 2025, and 6.9 billion RMB for 2026 [9]. Company Overview - The company operates primarily in the electrical equipment sector, with a market capitalization of approximately 130.46 billion RMB [1]. - The stock price as of January 9, 2025, was 57.20 RMB, with a target price set at 67 RMB [1]. - The company’s product mix includes 46.5% in general automation, 38.5% in new energy vehicles and rail transportation, and 14.4% in elevator electrical products [3]. Shareholder Structure - Institutional investors hold 21.5% of the circulating A-shares, while general corporations hold 30.2% [4].

Investment Rating - The investment rating for 汇川技术 (Inovance Technology) is "Buy" with a 12-month price target of RMB 61.2, indicating an upside potential of 4.5% from the current price of RMB 58.58 [10][11]. Core Insights - 汇川技术's industrial automation orders in December 2024 showed a year-on-year growth of over 20%, outperforming the previous year's performance, driven by sectors such as electric engineering machinery and consumer electronics [1]. - The company is expected to achieve a revenue growth of 21% year-on-year in Q4 2024 and 24% for the entire year, with net profit projected to grow by 20% and 7% respectively [1]. - The report highlights the company's strong market position in the industrial automation sector, with significant growth opportunities in overseas markets and expanding market share in PLC products [7]. Summary by Sections Industrial Automation Orders - 汇川技术 reported a year-on-year increase of over 20% in industrial automation orders for December 2024, compared to approximately 10% in November [1]. - The improvement in orders is attributed to the demand from electric engineering machinery, consumer electronics, and other sectors, contrasting with the declining trends seen in competitors [1][2]. Financial Projections - The revenue for the industrial automation segment is expected to grow by 6% in Q4 2024 and 4% for the entire year, aligning with the order growth rates [4]. - The revenue from the new energy vehicle components segment is projected to increase significantly, with growth rates of 36% and 67% for Q4 and the full year respectively [4]. Competitive Positioning - 汇川技术 holds a leading position in the domestic industrial automation market, with market shares of 18% and 29% for its core products, variable frequency drives and servo systems, respectively [7]. - The company is anticipated to increase its overseas revenue share from 6% in 2023 to 18% by 2030, indicating strong international growth potential [7].

Investment Rating - Buy (maintained) [1] Core Views - The subsidiary United Power's IPO has been accepted by the Shenzhen Stock Exchange, aiming to raise 4.86 billion yuan for projects including "New Energy Vehicle Core Component Production Construction" [7] - United Power's revenue has shown significant growth, with a CAGR of 80% from 2021 to 2023, and its contribution to Huichuan Technology's revenue increased from 16% in 2021 to 41% in 24Q1-3 [7] - United Power's product structure includes multi-level components, with system-level, component-level, and module-level products developing rapidly, accounting for 85% and 15% of revenue respectively in 24H1 [7] - United Power's market share in domestic third-party electric control products is about 11%, ranking first, and its share in drive assembly, motor, and OBC markets ranks 4th, 5th, and 8th respectively [7] - United Power's profitability has improved significantly after turning losses into profits, with a net profit margin of 4.7% in 24H1, and its future net profit margin is expected to rise due to platformization and scale effects [7] - United Power's customer base includes major domestic and international automakers, with new models from companies like Li Auto, Xiaomi, Chery, and GAC expected to contribute to future revenue growth [7] - United Power's total assets and net assets have grown steadily, with a debt ratio showing a positive trend [7] - Huichuan Technology's revenue and net profit are expected to grow steadily, with projected revenue of 37.56 billion yuan in 2024 and net profit of 5.03 billion yuan, maintaining a "Buy" rating with a target price of 78.1 yuan [7] Financial Forecasts - Revenue is expected to grow from 30.42 billion yuan in 2023 to 54.59 billion yuan in 2026, with a CAGR of 18.49% [1] - Net profit attributable to the parent company is expected to grow from 4.74 billion yuan in 2023 to 7.18 billion yuan in 2026, with a CAGR of 19.39% [1] - EPS is projected to increase from 1.76 yuan in 2023 to 2.67 yuan in 2026 [1] - P/E ratio is expected to decrease from 31.96 in 2023 to 21.12 in 2026 [1] - Gross margin is expected to remain stable around 29-30% from 2024 to 2026 [8] - ROE is projected to remain around 18% from 2024 to 2026 [8] Market Data - Closing price: 56.30 yuan [5] - One-year low/high price: 39.17/74.94 yuan [5] - P/B ratio: 5.70 [5] - Market capitalization: 151.57 billion yuan [5] Fundamental Data - Net asset per share: 9.88 yuan [6] - Asset-liability ratio: 49.29% [6] - Total shares: 2.69 billion [6] - Circulating A shares: 2.28 billion [6]

Investment Rating - The report maintains a "Buy" rating for the company [3] Core Views - The company has experienced significant revenue growth, with a projected revenue of 210-230 billion yuan in 2025, representing a year-on-year increase of 40-50% [2][3] - The company has established a strong market position, with its revenue share increasing from 16% in 2021 to 41% in the first three quarters of 2024 [1] - The company is expected to benefit from new customer contributions and collaborations with major international automotive brands [2] Revenue Growth and Product Development - The company's revenue for the first three quarters of 2023 was 94 billion yuan, reflecting a year-on-year growth of 79%, with a compound annual growth rate (CAGR) of 80% from 2021 to 2023 [1] - The company has developed a multi-level product structure, with significant sales in electric drive and power systems, achieving sales of 134,000 and 37,000 units respectively in the first half of 2024 [1] Customer Structure and Market Position - The top five customers in the first half of 2024 accounted for 33.2%, 14.0%, 6.8%, 6.4%, and 6.0% of revenue, with a notable increase in the share from the leading customer [2] - The company is collaborating with major international automotive manufacturers, including Volvo, Stellantis, Volkswagen, Audi, Porsche, and Jaguar Land Rover, for mass supply of OBC and DC/DC products [2] Profitability Forecast - The company is projected to achieve net profits of 50.3 billion yuan, 60.1 billion yuan, and 71.8 billion yuan for the years 2024, 2025, and 2026 respectively, with corresponding price-to-earnings (PE) ratios of 31, 26, and 22 [3] - The report anticipates a long-term net profit margin improvement, with expectations of reaching 8% in the future [9] Financial Health - As of the first half of 2024, the company's total assets and net assets were 129.7 billion yuan and 41.7 billion yuan respectively, showing steady growth [10] - The company's debt ratio has improved, with a decrease from 70.4% in 2021 to 67.9% in the first half of 2024 [10]

Group 1: Market Position and Growth Strategies - The company has achieved a leading market share in the domestic automation sector, particularly in variable frequency drives and servo products, but sees potential for further growth due to competitive product enhancements and increasing domestic brand strength [3][4]. - The company is focusing on expanding its market share in discrete and project-based markets, which currently have relatively low penetration [4]. - The overseas market is a key area for expansion, with strategies being implemented to increase global market share as internationalization efforts progress [4][5]. Group 2: Product Development and Competitiveness - The company is prioritizing the enhancement of its PLC products, which have seen significant growth due to market opportunities created by foreign brand shortages [4][5]. - Future strategies for PLC products include supplementing large PLC offerings, building an ecosystem through partnerships, and enhancing product connectivity with other product lines [4]. - New product lines, including precision machinery, pneumatic products, and sensors, are being promoted through bundled sales strategies to meet customer needs more effectively [5][6]. Group 3: Internationalization and Client Base - The company has adopted a dual strategy for internationalization, focusing on leveraging existing multinational clients and customized solutions developed for the Chinese market to penetrate overseas markets [5]. - The client structure for the new energy vehicle business has improved, with contributions from various types of automotive manufacturers, including new energy vehicle startups and traditional manufacturers transitioning to electric vehicles [5][6]. Group 4: Digitalization Efforts - The company's InoCube digital platform has been iteratively developed and is now being applied in various sectors, including ports and air compressors, as part of its "automation + digitalization" strategy [6]. - The digital business is still in the investment phase, with ongoing efforts to provide affordable and easy-to-deploy digital solutions for industrial clients [6].