SIASUN(SZ:300024)2025-06-04 15:25Investment Rating - The report maintains an "Overweight" (OW) rating for key companies including Inovance, AirTAC, and Leader Drive, reflecting a positive outlook for the sector [12]. Core Insights - The Factory Automation (FA) sector is experiencing a cycle inflection with improving demand trends, particularly in project-based and OEM markets. Companies are reporting positive growth across various sectors, driven by new product rollouts and strategic expansions [2][5]. - The competitive landscape is dynamic, with domestic brands outperforming foreign counterparts, and companies are strategically positioning themselves for long-term success despite initial earnings delivery being muted [2][18]. Latest Demand Checks & Order Trends - The Chinese automation market is recovering, with notable growth in sectors such as wind power and lithium batteries. Inovance targets 20% year-over-year growth in IA sales for 2025, while AirTAC projects low-teens revenue growth supported by 3C electronics and automotive sectors [5][25]. - Estun Automation reports solid demand for industrial robots, driven by investments in lithium battery and 3C electronics sectors, with key clients like CATL and BYD expanding capacity [25]. Pricing & Margin Dynamics - Pricing and margin dynamics are showing signs of improvement, with companies like Yiheda Automation targeting a 1.5 percentage points year-over-year improvement in gross profit margin (GPM) by diversifying its customer base [19][20]. - AirTAC is managing pricing pressures effectively, supported by stable inventory levels and strategic capacity relocation from Taiwan to Ningbo [22]. New Product Initiatives - Companies are focusing on innovation as a key driver for growth. Inovance plans to launch humanoid robots in the second half of 2025, while Estun is advancing AI-driven robotics products for manufacturing scenarios [28][29]. - Yiheda Automation is enhancing its automation components and exploring opportunities in the humanoid robot segment, aiming to standardize non-standard parts [29]. Competitive Landscape & Market Share - Domestic brands are gaining market share, with companies like Inovance targeting competition with industry giants such as ABB and Siemens. Yiheda Automation aims to strengthen its position in the non-core FA components niche market [32][33]. - Leader Drive is leveraging its early-mover advantage in the harmonic drive market, maintaining close relationships with leading industrial robot brands [32]. Strategic Expansion & Global Footprint - Companies are accelerating their overseas expansion to tap into new markets. Inovance is building brand recognition through overseas research centers, while Yiheda plans to increase its overseas sales exposure to over 10% in three years [33][39]. - Estun aims to double its European sales by 2025, and Leader Drive is establishing manufacturing bases abroad to enhance its global footprint [39].