汇川技术：周期底部修炼内功，拐点将近龙头有望再次腾飞

Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - The company, 汇川技术, is currently refining its internal capabilities at the bottom of the cycle, with expectations of a near-term turning point for the leading company to soar again. The business outside of automotive is steadily developing, with per capita revenue and profit levels among the industry leaders. In 2023, the company's profitability declined due to industry conditions and market competition, but it has effectively controlled expense ratios and personnel numbers. In the first half of 2024, the non-automotive business is showing signs of stabilizing in net profit margins, and profitability is expected to gradually improve with the recovery of the manufacturing industry and stabilization of PPI [2][5][12]. Summary by Sections Company Overview - 汇川技术 has been operating in the new energy vehicle sector since 2012, transitioning from commercial vehicles to passenger vehicles since 2016. The per capita revenue has significantly increased from 650,000 yuan in 2012 to 1,190,000 yuan in 2023, outperforming domestic competitors [14][15]. Financial Performance - The company faced a relative low point in the industry during 2023-2024, leading to a temporary increase in sales expense ratios, which are expected to return to average levels in the first half of 2024. Management expenses have been maintained around 5%, while R&D expenses are projected to rise to 11% in the first half of 2024 due to new product development [17][20]. Profitability Trends - The company's gross margin and net profit margin are stabilizing, with the gross margin for the non-automotive business at 42% and net profit margin at 18% in the first half of 2024. The overall profitability is expected to recover as the industry rebounds [22][24]. Market Opportunities - The overseas market presents a significant growth opportunity, with the global industrial control market being approximately 13,444 billion yuan, which is 3-4 times larger than the domestic market. The company is well-positioned to leverage its industry expertise and channel development to penetrate international markets [28][30][31].