Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 16.40 [8]. Core Views - The company is expected to continue expanding its production capacity, which will solidify its scale advantages. The demand for products such as wind power yarn is anticipated to grow, leading to an increase in revenue contribution and enhanced profitability [1][4]. - The average prices for various fiberglass products have shown year-on-year improvements, with increases of 15% for winding direct yarn, 23% for SMC compound yarn, and 18% for G75 electronic yarn in the first five months of 2025 [2]. - The company has successfully launched new production lines, increasing its domestic fiberglass production capacity to 2.61 million tons by the end of May 2025, which is expected to further enhance its market share [3]. - The wind power and electronics sectors are experiencing high demand, with significant growth in new installations and emerging technologies, positioning the company to benefit from these trends [4]. Summary by Sections Production Capacity and Market Position - The company has two new production lines in Jiujiang, each with a capacity of 100,000 tons, which commenced operations in February and April 2025. The total domestic fiberglass production capacity reached 2.61 million tons by the end of May 2025 [3]. - The company also has overseas production capacities of 360,000 tons in Egypt and 100,000 tons in the United States, which are expected to provide competitive advantages amid tariff uncertainties [3]. Financial Performance and Forecast - The company’s gross margin and net profit margin for Q1 2025 were 30.5% and 16.3%, respectively, reflecting a year-on-year increase of 10.4 and 5.9 percentage points [2]. - The forecasted net profit for the company from 2025 to 2027 is RMB 32.7 billion, RMB 38.5 billion, and RMB 45.6 billion, respectively [5]. Industry Trends and Product Development - The wind power sector saw an addition of 20.0 GW of new installations in the first four months of 2025, a year-on-year increase of 19%, with April alone witnessing a 255% increase [4]. - The company is actively developing low dielectric constant products to meet the growing demand in the AI sector, positioning itself as a leader in the domestic electronic yarn and fabric market [4].

Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 82.00 [8][9]. Core Views - The company expects continued growth in the domestic engineering machinery market in 2025, with global layout providing new opportunities due to supply chain disruptions from trade tensions [1]. - The company's excavator product output remains robust, with a recovery cycle in the global excavator market, particularly in Europe [2]. - Supply chain disruptions from trade tensions are seen as opportunities for the company to increase its market penetration globally [3]. - The penetration rate of planetary roller screw solutions is expected to increase as prices decrease, supported by the company's investment in linear actuator projects [4]. - The company's projected net profits for 2025-2027 are RMB 27.51 billion, RMB 32.27 billion, and RMB 37.72 billion, respectively, with corresponding EPS of RMB 2.05, RMB 2.41, and RMB 2.81 [5]. Summary by Sections Market Outlook - The domestic excavator market in China sold 83,514 units from January to April 2025, a year-on-year increase of 21.4%, with domestic sales up 31.9% [2]. - The company anticipates sustained high growth rates in excavator sales despite seasonal fluctuations [2]. Global Strategy - The company is expanding its global production capacity, with a factory in Mexico starting production in June 2025, which is expected to reduce costs for North American customers [3]. - The Indonesian production capacity is also set to come online, allowing the company to meet local demand even amid potential trade tensions [3]. Product Development - The company has invested RMB 1.4 billion in developing linear actuator projects, with expectations of improved cost efficiency and product penetration in the market [4]. Financial Projections - The company forecasts revenue growth from RMB 8.985 billion in 2023 to RMB 14.176 billion in 2027, with a compound annual growth rate of 17.59% [7]. - The projected net profit margin is expected to remain stable, with net profit increasing from RMB 2.499 billion in 2023 to RMB 3.772 billion in 2027 [7].

| 华泰研究 | | | 更新报告 | | --- | --- | --- | --- | | 2025 年 | 6 月 | 05 日│中国香港 | 通信服务 | 6 月 5 日万国数据出席了我们组织的 2025 年中期策略会，会上公司表示： 1）国内数据中心的需求情况发生了明显的改善迹象，AI 推理需求不断在国 内一线城市涌现，大型 CSP 的订单持续释放，若后续芯片短缺问题得到有 效缓解，行业供需拐点将体现的更为明显；2）DayOne 在业务拓展方面取 得突破性进展，成功进军欧洲市场并斩获新订单；3）公司顺利完成了可转 债和增发融资工作，公募 REITS 项目发行在即，资本结构有望进一步优化。 国内业务：AI 应用需求带动行业供需情况持续向好 1Q25 在国内 AI 应用需求带动下，公司存量数据中心的上架率达到 75.7%， 环比提升 1.9pct，去库存情况良好；同时，公司新签数据中心订单达到 151.6MW。尽管短期国内 AI 芯片供应存在不确定性，但已签约订单的上架 和确收具备保障，中长期来看，AI 应用将为数据中心行业带来比云时代更 大、更可持续的发展机会。此外，政策正引导行业大型化、绿色化、集约 ...

Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 81.02 [8][19]. Core Insights - The company is accelerating its globalization strategy, highlighted by the acquisition of Czech IMI, which will serve as a strategic foothold in Europe [3][13]. - The company has successfully secured new orders from major global clients such as BMW, Mercedes-Benz, and Ford, indicating strong demand for its new products and technologies [2][14]. - The company aims to enhance its overseas production capabilities and expand its market share in the automotive electronics sector [3][19]. Summary by Sections Investment Rating - The investment rating is maintained as "Buy" with a target price set at RMB 81.02, reflecting confidence in the company's growth potential [8][19]. Globalization Strategy - The company is focusing on strengthening its existing automotive electronic products while developing new domain control products. The recent acquisition of Czech IMI is a key part of this strategy, aimed at enhancing overseas production capabilities [3][13]. - The company has achieved significant results in promoting new products and technologies to European and American clients, with a notable increase in overseas sales [2][14]. Acquisition of Czech IMI - The company announced the acquisition of 100% of Czech IMI for EUR 9.426 million, which will enhance its international production layout and support the ramp-up of global orders [3][16]. - This acquisition is expected to allow the company to produce for global platform clients, including Volkswagen, Ford, BMW, and Mercedes-Benz, starting with lighting control products [3][17]. Financial Forecast - The company forecasts revenues of RMB 78.3 billion, RMB 101.5 billion, and RMB 125.6 billion for the years 2025 to 2027, with net profits of RMB 10.5 billion, RMB 14.38 billion, and RMB 18.37 billion respectively [5][19]. - The report maintains a PE target of 31 times for 2025, indicating a strong outlook for profitability [5][19].

Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 42.96 [8][9]. Core Views - The company is expected to benefit from the resilience of the retail market due to the expansion of home decoration subsidies and the improving channel structure, leading to a potential recovery in profit margins and operational flexibility [1]. - The "Immediate Living" and "Beautiful Countryside" initiatives are anticipated to accelerate the company's presence in the stock renovation and third- and fourth-tier markets, with a projected demand for stock renovation of approximately 11 to 12 million units per year from 2024 to 2026, reflecting a CAGR of 5% [2]. - The company is undergoing a channel transformation towards engineering distribution, maintaining a leading market share despite a decline in direct sales revenue, which is expected to stabilize in the coming years [3]. - The retail sales of construction and decoration materials reached RMB 53 billion in the first four months of 2025, showing a year-on-year increase of 2.3%, with a significant monthly increase of 9.7% in April [4]. Summary by Sections Financial Forecasts and Valuation - The company’s net profit forecasts for 2025 to 2027 are RMB 651.4 million, RMB 847.05 million, and RMB 1.09 billion respectively, indicating a CAGR of 48.7% [5]. - The company is assigned a PEG ratio of 0.75x for 2025, with a target price based on a PEG of 1.0x, reflecting the expected growth in the "Immediate Living" business and stable market share in engineering [5]. - The projected revenue for 2025 is RMB 13.203 billion, with a year-on-year growth of 9.07% [7]. Market Position and Competitive Landscape - The company is positioned to capture growth opportunities in the renovation market, with its brand strength gradually being validated against competitors like Nippon Paint [2]. - The engineering business is expected to maintain its leading market share while reducing impairment risks, with accounts receivable turnover improving to 3.6 in 2024 [3]. Operational Insights - The company is actively managing costs and improving operational efficiency, with expectations for continued profit elasticity due to effective expense control measures [4]. - The average price of titanium dioxide, a key raw material, has decreased by 9.6% year-on-year, which may limit further price declines in products [4].

Investment Rating - The investment rating for the company is "Buy" with a target price of RMB 43.60 [8][9]. Core Views - The report indicates that the impact of tariffs on the sewing machine industry is manageable in the short term, while in the medium to long term, it may drive a shift in global apparel manufacturing, boosting demand for new sewing machines [1][2]. - The company is focusing on promoting AI technology in apparel manufacturing, introducing new products such as AI sewing machines and humanoid robots to help downstream clients reduce costs and improve efficiency [1][4]. - Continuous product innovation is expected to enhance the company's profitability [1]. Summary by Sections Tariff Impact - In the short term, uncertainty in U.S. tariff policies may lead some downstream clients to adopt a wait-and-see approach regarding expansion. However, in the medium to long term, this uncertainty is likely to accelerate the decentralization of the global apparel supply chain, prompting manufacturers to shift to countries with lower tariff risks, thereby increasing demand for new machines and providing opportunities for leading companies to enhance market share [2]. Industry Growth - In April, the industrial sewing machine export value reached USD 148 million, a year-on-year increase of 23%. Notably, demand from low-tariff risk regions like Egypt, Kenya, and Argentina saw significant growth, with year-on-year increases of 111%, 254%, and 842%, respectively [3]. Labor and AI Integration - The apparel manufacturing industry is labor-intensive, with a potential for significant machine replacement. The report highlights that the company has made milestone progress in high-end product development, including prototypes of high-end AI sewing machines and humanoid robots, which are expected to open new growth avenues [4]. Profit Forecast and Valuation - The company’s projected net profits for 2025 to 2027 are RMB 1.16 billion, RMB 1.28 billion, and RMB 1.38 billion, respectively, with corresponding PE ratios of 16, 14, and 13. The target price has been adjusted to RMB 43.60 based on a revised PE of 18 for 2025 [5][7].

Investment Rating - The investment rating for the company is "Buy" with a target price of 43.60 RMB [8][9]. Core Views - The report indicates that the impact of tariffs on the sewing machine industry is manageable in the short term, while in the medium to long term, it may drive a shift in global apparel manufacturing, boosting demand for new sewing machines [1][2]. - The company is focusing on promoting AI technology in apparel manufacturing, introducing new products such as AI sewing machines and humanoid robots to help downstream clients reduce costs and improve efficiency [1][4]. - Continuous product innovation is expected to enhance the company's profitability [1]. Summary by Sections Tariff Impact - In the short term, uncertainty in U.S. tariff policies may lead some downstream clients to adopt a wait-and-see approach regarding expansion. However, in the medium to long term, this uncertainty is likely to accelerate the decentralization of the global apparel supply chain, prompting manufacturers to shift to countries with lower tariff risks, thereby increasing demand for new machines and providing opportunities for leading companies to enhance market share [2]. Industry Growth - In April, the industrial sewing machine export value reached 148 million USD, reflecting a year-on-year increase of 23%. Notably, demand from external markets like Vietnam and Bangladesh grew by 32% and 50% respectively, although this was a slowdown compared to Q1 [3]. - Countries with lower tariff risks, such as Egypt, Kenya, and Argentina, showed remarkable demand growth, with year-on-year increases of 111%, 254%, and 842% respectively [3]. AI and Robotics in Manufacturing - The apparel manufacturing industry is labor-intensive, with significant potential for AI and humanoid robot applications. Over the past eight years, approximately 57 million industrial sewing machines have been used in China, indicating a global sewing machine population of nearly 60 million. This suggests a substantial opportunity for machine replacement [4]. - The company has made significant progress in developing high-end products, including prototypes of AI sewing machines and humanoid robots, which are expected to open new growth avenues [4]. Profit Forecast and Valuation - The company maintains its profit forecast, expecting net profits of 1.16 billion, 1.28 billion, and 1.38 billion RMB for 2025 to 2027, corresponding to PE ratios of 16, 14, and 13 times respectively. The target price has been adjusted to 43.6 RMB, reflecting an increase from the previous 38.4 RMB due to a rise in comparable company PE ratios [5].

Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 42.96 [8][9]. Core Views - The company is expected to benefit from the resilience of the retail market due to the expansion of home decoration subsidies and the improving channel structure, leading to a potential recovery in profit margins and operational flexibility [1]. - The "Immediate Residence" and "Beautiful Countryside" initiatives are anticipated to accelerate the company's presence in the renovation market, particularly in lower-tier cities, with a projected demand for 11 to 12 million units per year from 2024 to 2026, reflecting a CAGR of 5% [2]. - The company has shifted its focus towards engineering distribution channels, maintaining a leading market share despite a decline in direct sales revenue, with a gradual improvement in accounts receivable turnover [3]. - Price competition is expected to ease, and the company is likely to continue demonstrating profit elasticity due to effective cost control measures implemented since late 2024 [4]. Summary by Sections Financial Forecasts and Valuation - The company’s net profit forecasts for 2025 to 2027 are RMB 651.4 million, RMB 847.05 million, and RMB 1.09 billion respectively, with a CAGR of 48.7% [5]. - The company is valued at a PEG of 0.75x for 2025, and the target price reflects a PEG of 1.0x, indicating strong growth potential [5]. - Revenue projections for 2025 are set at RMB 13.203 billion, with a growth rate of 9.07% compared to 2024 [7]. Market Position and Competitive Landscape - The company is positioned to capture a significant share of the renovation market, with its brand strength gradually being validated against competitors like Nippon Paint [2]. - The engineering business is expected to stabilize its market share at the top level, with reduced impairment risks on accounts receivable [3]. Operational Insights - The retail sales of construction and decoration materials reached RMB 53 billion in the first four months of 2025, showing a year-on-year increase of 2.3% [4]. - The average price of titanium dioxide, a key raw material, decreased by 9.6% year-on-year as of May 2025, which may limit further price declines in products [4].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 81.02 [8][19]. Core Insights - The company is accelerating its globalization strategy, highlighted by the acquisition of Czech IMI, which will serve as a strategic foothold in Europe [3][16]. - The company has successfully secured new orders from major global clients such as BMW, Mercedes-Benz, and Ford, indicating strong demand for its products [2][14]. - The company aims to enhance its product offerings in automotive electronics and develop new domain control products, focusing on expanding its customer base [2][13]. Summary by Sections Acquisition of Czech IMI - The company announced the acquisition of 100% of Czech IMI for EUR 9.426 million to enhance its overseas market presence and production capabilities [3][16]. - This acquisition will establish a factory in the Czech Republic, serving as a strategic base for the company in Europe and facilitating the production of global platform client orders [3][17]. Globalization Strategy - The company has been actively promoting new products and technologies to European and American clients, achieving significant results in recent years [2][14]. - In 2024, the company expects to generate over RMB 1.2 billion in sales from new projects, with a significant portion coming from overseas clients [14][15]. - The company plans to continue expanding its global footprint by targeting new business opportunities and enhancing its existing client relationships [15][19]. Financial Forecast - The report forecasts revenues of RMB 78.3 billion, RMB 101.5 billion, and RMB 125.6 billion for 2025, 2026, and 2027 respectively, with net profits of RMB 10.5 billion, RMB 14.38 billion, and RMB 18.37 billion [5][19]. - The company is expected to maintain a PE ratio of 31 times for 2025, reflecting strong growth potential [5][19].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 23.88 [5][8]. Core Insights - The company is actively expanding its overseas market presence and has a strong pipeline of new products, including the anticipated internal testing of the AI emotional companion application "EVE" [1][4]. - The successful launch of new games, such as "Dragon Valley World" and "Digital Monster: Source," has garnered significant market attention, indicating the company's ability to leverage classic IPs and innovate gameplay [2]. - The company's overseas mobile game "Party Beast Control" achieved top rankings in various regions shortly after its launch, showcasing its effective market strategy and user growth potential [3]. Summary by Sections Product Performance - The new game "Dragon Valley World" topped the App Store free games chart on its first day of public testing and remains a strong performer in the iOS action game category [2]. - "Digital Monster: Source" has also gained traction, ranking 73rd in the iOS adventure game category as of June 3, 2025 [2]. Overseas Expansion - The company launched "Party Beast Control" in Hong Kong, Taiwan, and Macau, achieving top download rankings in these regions [3]. - "MU Immortal" was released in over 100 countries, topping the RPG free charts in Canada and Germany, indicating successful international market penetration [3]. AI Technology Integration - The company is investing in AI technology, with the upcoming "EVE" game expected to enhance user engagement through multi-platform interactions [4]. - The new brand "Warm Star Valley Dream Journey" combines AI technology with interactive experiences, aiming to attract a broader audience [4]. Financial Forecast - The company forecasts net profits of RMB 20.4 billion, RMB 24.1 billion, and RMB 27.3 billion for 2025, 2026, and 2027 respectively, with a PE ratio of 25X for 2025 [5][7]. - Revenue is projected to grow from RMB 4.295 billion in 2023 to RMB 6.910 billion by 2027, reflecting a compound annual growth rate [7][19].