SIASUN(SZ:300024)2025-06-23 02:10Investment Rating - The report upgrades Sanhua to "Overweight" (OW) and Xusheng to "Equal Weight" (EW) based on their potential in the humanoid market and expected revenue recovery [6][27]. Core Insights - Humanoid robots are anticipated to create a third wave of growth for auto parts suppliers, following the previous waves driven by vehicle electrification and smartization [2][36]. - The report emphasizes the importance of companies with order visibility or business synergy in the emerging humanoid market [1][4]. Summary by Sections Humanoid Market Opportunity - The humanoid industry is still in its infancy, presenting significant growth potential for auto parts suppliers, particularly tier-1 suppliers like Sanhua and Tuopu, who are better positioned to capture this growth [5][26]. - The global humanoid market is estimated to reach US$5 trillion by 2050, with a notable US$0.8 trillion market in China [23][24]. Advantages for Auto Companies - Auto OEMs can leverage their expertise in autonomous driving and large-scale manufacturing to develop humanoid robots, which can initially operate in auto factories [4][21]. - Chinese humanoid parts suppliers have a cost advantage over their global counterparts, although their success may depend on geopolitical factors such as US import tariffs [4][24]. Company Ratings and Price Targets - Sanhua's price target is upgraded to RMB 30 from RMB 29, reflecting stronger revenue expectations and the potential for humanoid actuator module supply [30]. - Xusheng's price target is adjusted to RMB 12 from RMB 13, with expectations of modest revenue recovery amid competitive pressures [31]. - Tuopu remains rated OW, but its price target is reduced to RMB 63 from RMB 72 due to weaker shipments to overseas customers [32]. Historical Context and Growth Waves - The report outlines two previous growth waves in the auto industry: electrification (2021-22) and smartization (since 2022), which have significantly impacted the revenue and valuation of auto parts suppliers [36][42]. - The electrification wave saw China's NEV penetration rate increase from 15% in 2020 to 36% in 2022, while the smartization wave has driven up the adoption of advanced driving technologies [37][42].