Guolian Minsheng Securities·2026-03-14 13:30Investment Rating - The report maintains a recommendation for the process industrial instrumentation and control sector, particularly highlighting the potential of Chuan Yi Co., Ltd. as a beneficiary of the historical opportunity for domestic substitution in high-end fields [2][3][65]. Core Insights - The report emphasizes that under the national strategies of "Manufacturing Power" and "Industrial Chain Security," major state-owned enterprises are required to increase the procurement rate of domestic products, presenting a historic opportunity for leading domestic brands [2][65]. - Chuan Yi Co., Ltd. is positioned at the intersection of accelerated domestic substitution and industrial chain collaboration, with the backing of the State Machinery Group addressing its previous high-end market entry barriers [2][65]. - The report predicts that the high-end market will become a battleground for domestic brands, with significant potential for breakthroughs in 2025, driven by advancements in technology, supportive policies, and resource advantages [2][46][61]. Summary by Sections 1. Emerson as a Benchmark - Emerson has transformed from a motor manufacturer to a global leader in industrial automation through strategic acquisitions and divestitures, focusing on smart devices and software [9][21]. - The company has significantly expanded its product categories and market presence through acquisitions, establishing a comprehensive portfolio in the automation control sector [21][22]. 2. Domestic Instrumentation Opportunities - The report notes that from 2015 to 2024, the market share of domestic brands in the control valve sector increased from 33% to 43%, with domestic sales growing at a CAGR of approximately 11% [36][41]. - The high-end market for instrumentation in the oil and petrochemical sectors remains largely untapped, with a current domestic substitution rate of about 20% [46][57]. - The report identifies that the domestic brands, particularly Chuan Yi Co., Ltd., are well-positioned to capture market share in high-end applications due to improved product performance and supportive government policies [46][61]. 3. Investment Recommendations - The report recommends focusing on Chuan Yi Co., Ltd. as a leading automation instrumentation manufacturer, highlighting its comprehensive product offerings and strategic positioning for future growth [65][66]. - The company is expected to benefit from increased capital expenditures by major state-owned enterprises and the ongoing push for domestic product procurement [65][66].