HFM(SH:603011) Xin Lang Cai Jing·2025-09-18 09:47Core Viewpoint - Foreign investment banks such as Morgan Stanley, Goldman Sachs, and UBS are showing interest in a Chinese high-end manufacturing company, Hezhuan ZN, despite its recent decline in profits, indicating potential underlying value and future growth opportunities [1][2][6]. Group 1: Financial Performance - The company reported a net profit of 9.51 million, a year-on-year decrease of 11%, which raises questions about its current performance [5]. - Inventory reached a historical high of 1.367 billion, increasing by 13% year-on-year, suggesting proactive stockpiling for anticipated orders rather than unsold products [7]. - The accounts receivable turnover days improved to 129 days, a 20% acceleration, indicating faster cash collection from customers [5][9]. - Cash received from sales amounted to 1.119 billion, a 12% increase, surpassing revenue, which reflects high-quality income generation [9][10]. Group 2: Strategic Insights - The interest from foreign investors is driven by the belief in the irreversible future of high-end manufacturing in China, rather than short-term profit figures [6]. - The company is positioned in a favorable macroeconomic environment that supports high-end manufacturing and new productivity initiatives [9]. - Hezhuan ZN is recognized as a leader in the domestic forming machine tool sector and has made breakthroughs in manufacturing core components for fusion reactors, opening opportunities in advanced equipment manufacturing [9][11]. Group 3: Future Growth Potential - The company is in a transitional phase, balancing traditional business stability with investments in new technologies, which may lead to future profit growth [10]. - The national push for large-scale equipment upgrades is expected to generate significant orders for the company's core products [11]. - Breakthroughs in new materials and fields, such as fusion reactor components, could lead to valuation restructuring and expansion into other high-end sectors [11]. - The growth of intelligent sorting equipment in various industries provides a stable growth trajectory for the company [11].