Leaderdrive(SH:688017) Huachuang Securities·2025-07-03 06:15Investment Rating - The report gives a "Buy" rating for the precision reducer industry, highlighting its broad application space and high technical barriers, driven by downstream industries for rapid market growth [10][12]. Core Insights - The precision reducer market is experiencing robust growth, with a projected market size of 9.1 billion yuan in 2024, driven by industrial robots, machine tools, and humanoid robots [36][40]. - Domestic manufacturers are expected to accelerate core customer integration and achieve domestic substitution through years of industry and technology accumulation [10][12]. - The report identifies three main categories of domestic reducer manufacturers: traditional precision reducer manufacturers, upstream and downstream industry players, and manufacturing companies transitioning to reducer production [4][11]. Summary by Sections Section 1: Precision Reducers - Precision reducers serve as core transmission components, connecting power sources and actuators, with various types including harmonic, RV, and planetary reducers [16][19]. Section 2: Industry Opportunities - The precision reducer market is set for steady growth, with the industrial robot sector being the largest downstream application, accounting for 36% of the market in 2024 [37][39]. - The machine tool sector follows, representing 23% of the market, while humanoid robots are emerging as a potential growth area [36][40]. Section 3: Domestic Manufacturer Landscape - Traditional precision reducer manufacturers like Grede Harmonic and Ring Dynamics have established a strong presence in the industrial robot sector [4][11]. - Companies from the automotive parts and related industries are extending their reach into the reducer market, leveraging their existing capabilities [4][11]. - Manufacturers with OEM capabilities are transitioning to reducer production, capitalizing on market demand [4][11]. Section 4: Key Company Profit Forecasts and Valuation - Grede Harmonic is projected to have an EPS of 0.47 yuan in 2025, with a PE ratio of 252.81, indicating strong growth potential [5].