SIASUN(SZ:300024) Goldman Sachs·2025-06-23 02:09Investment Rating - The report indicates a positive outlook for the industrial automation sector, particularly in the context of strong demand from the battery terminal market and equipment upgrades in various industries [1][3]. Core Insights - The production of industrial robots in China saw a year-on-year increase of 36% in May, although there was a month-on-month decline of 3% [3]. - The total demand for process automation in the next two years is projected to reach between RMB 10 billion to 20 billion, driven by equipment upgrades in coal chemical, power, nuclear power, and metallurgy sectors [1]. - The order trends for industrial automation companies showed mixed results, with some companies experiencing order growth while others faced deterioration [3]. Summary by Sections Industrial Robot Production - In May, industrial robot production increased by 36% year-on-year, but the month-on-month growth was down by 3%, contrasting with a historical average seasonal growth of 11% [3][33]. Equipment Exports - The export growth rate for major equipment has slowed, with injection molding machine exports growing by 25% in value and 28% in volume year-on-year in April, down from 45% in both metrics in March [3][26]. Order Trends - Among the 32 companies covered, 3 reported improved order trends in May, while 5 experienced a decline. Notably, Yiheda's orders grew due to strong demand from the lithium battery sector, despite a decline in consumer electronics [3][7]. Process Automation Market - The demand for process automation is expected to be supported by equipment upgrades starting in May, with a total projected demand of RMB 10 billion to 20 billion over the next two years [1][3]. Manufacturing and Economic Indicators - The manufacturing PMI for China was reported at 49.5 in May, indicating a slight improvement from 49.0 in April, while the PPI was down by 3.3% year-on-year [38][40].