Core Viewpoint - The establishment of the "Embodied Intelligence Branch" of the China Electromechanical Integration Technology Application Association aims to promote the development of embodied intelligence in China, integrating resources to address challenges and drive high-quality economic growth [1]. Group 1: Background of the Embodied Intelligence Branch - The strategic value of embodied intelligence is highlighted as a key driver of the new technological revolution and industrial transformation, integrating AI, robotics, and cognitive science [2]. - In the first half of 2025, domestic financing for the embodied intelligence industry exceeded 23 billion yuan, indicating rapid growth and significant potential in various sectors such as industrial, logistics, healthcare, and elder care [1]. Group 2: Relationship Between Electromechanical Integration and Embodied Intelligence - Electromechanical integration serves as the "physical foundation" for embodied intelligence, facilitating the evolution of intelligent systems from "functional integration" to "cognitive interaction" [2]. - The relationship is characterized by a dynamic closed-loop interaction between the physical structure provided by electromechanical integration and the cognitive capabilities of embodied intelligence [2]. Group 3: Introduction to the Leading Association - The China Electromechanical Integration Technology Application Association, established in September 1989, is a national, professional, non-profit organization focused on automation, robotics, and intelligent manufacturing [3]. Group 4: Purpose and Positioning of the Branch - The branch will act as a national industry organization for embodied intelligence, bridging government and industry, and focusing on technology research, industry standards, and application scenarios [4][5]. Group 5: Membership Recruitment Scope - The recruitment targets key industry enterprises across three levels: upstream component and software companies, midstream integration and application companies, and downstream end-user enterprises in various sectors [6]. - Research institutions and universities involved in embodied intelligence research are also included in the membership scope [7]. - Third-party service organizations related to the embodied intelligence field are encouraged to join [8]. Group 6: Membership Application Conditions - Applicants must have independent legal entity status, comply with national laws, and have no major violations in the past three years [9]. Group 7: Work Procedures - The application process includes material submission, qualification review, and the convening of an inaugural meeting to establish the branch's leadership [10][11][12].

Group 1 - The next five years are critical for the global humanoid robot development, and any country that gains an advantage in this competition will reshape the ranking of technological powers and secure a significant future market [1][4] - Morgan Stanley's latest "Robot 100" report for 2025 lists only four Taiwanese companies: Hon Hai, Heda, Shyein, and TSMC, highlighting the gap between Taiwan's humanoid robot industry and China's [1][2] - Taiwanese companies face significant challenges in competing directly with Chinese counterparts due to differing cost structures, making direct competition unlikely [2] Group 2 - Analysts suggest that Taiwan should focus on its strengths in semiconductors and integrated solutions, with three development directions: focusing on semiconductor opportunities, providing integrated system components, and understanding end-user needs before developing parts [2] - Taiwan's industry should avoid direct competition with international giants and instead leverage specific advantages by providing high-quality key components rather than assembling complete humanoid robots [3] - The current Taiwanese humanoid robot supply chain faces internal completeness issues and external low-cost competition from China, but potential opportunities may arise due to the tense US-China relations [3]

Group 1 - The company is focusing on expanding its E-bike business in the North American market, leveraging the high brand recognition of Segway and the large market demand [2] - The company believes that now is the right time to enter the E-bike industry, aiming for innovations in electromechanical integration, intelligence, and motor and transmission systems to achieve better profitability [2] - The company aims to maintain a 70% market share in the domestic market by 2024 and enhance its global market penetration through technological advantages [2] Group 2 - The electric scooter business is experiencing strong growth, with a 30.13% year-on-year increase in retail revenue for its own brand in Q1 2025 [3] - The company plans to expand its store network to 10,000 locations while emphasizing compliance management and sales capabilities [3] - The company is exploring innovative forms of two-wheeled transportation in collaboration with BMW [3]

Investment Rating - The report assigns an "Accumulate-A" rating for the company, indicating a positive outlook for its stock performance in the near term [1][9]. Core Views - The company is experiencing a recovery in performance, with a focus on product expansion and high-end application scenarios. The industrial robot sector is showing signs of demand recovery, which is beneficial for the company's growth [1][4]. - The company has a leading position in the domestic harmonic reducer market and is expected to benefit from the expansion of high-end applications [9]. Financial Performance Summary - In 2024, the company achieved revenue of 387 million yuan, a year-on-year increase of 8.77%. However, the net profit attributable to shareholders decreased by 33.26% to 56 million yuan [2][4]. - For Q1 2025, the company reported revenue of 98 million yuan, a year-on-year increase of 19.65%, and a net profit of 20 million yuan, marking a turnaround from losses in the previous quarter [2][4]. - The gross margin and net margin for 2024 were 37.54% and 14.41%, respectively, both showing a decline compared to the previous year [4]. Product and Market Development - The company is continuously optimizing its harmonic reducers and expanding into high-end application markets, including semiconductor equipment and humanoid robots [5][6]. - The company is also enhancing its planetary roller screw technology to provide comprehensive precision transmission solutions, with a focus on high precision and long lifespan [5][6]. Capacity and Global Expansion - The company is progressing steadily with its capacity expansion projects, aiming for an annual production of 500,000 precision reducers, and is actively establishing sales teams in key international markets [6][8]. - The acquisition of a German company has facilitated local production of precision transmission components in Europe, enhancing the company's global footprint [8][9]. Earnings Forecast - The company is projected to achieve earnings per share (EPS) of 0.54, 0.67, and 0.83 for the years 2025, 2026, and 2027, respectively, with corresponding price-to-earnings (P/E) ratios of 271.4, 217.5, and 175.4 [9][11].

Investment Rating - The report assigns an "Accumulate-A" rating for the company, indicating a positive outlook for its stock performance in the near term [1][9]. Core Insights - The company has shown signs of performance recovery in Q1 2025, with a revenue increase of 19.65% year-on-year, and a return to profitability with a net profit of 0.20 billion yuan [2][4]. - The company is focusing on expanding its product offerings and high-end application scenarios, particularly in the semiconductor and robotics sectors, which presents significant growth opportunities [5][6]. - The company is actively enhancing its production capacity and pursuing globalization strategies, including establishing sales teams in key international markets and acquiring a German company to strengthen its European presence [6][8]. Financial Performance - In 2024, the company achieved a revenue of 3.87 billion yuan, reflecting an 8.77% year-on-year growth, while the net profit decreased by 33.26% to 0.56 billion yuan [2][11]. - The gross margin and net margin for 2024 were reported at 37.54% and 14.41%, respectively, both showing a decline compared to the previous year [4][11]. - The company expects significant growth in earnings per share (EPS) from 0.54 yuan in 2025 to 0.83 yuan in 2027, indicating a positive trend in profitability [9][11]. Product Development and Market Position - The company is a leader in the domestic harmonic reducer market, with ongoing optimization and iteration of its products to meet high-end market demands [5][9]. - The company has successfully penetrated the semiconductor equipment market, meeting stringent requirements for low vibration and high reliability [5]. - The company is also advancing its planetary roller screw technology, which addresses high precision and long lifespan challenges, thereby enhancing its product portfolio [6]. Market Outlook - The report anticipates that the company's EPS will grow significantly over the next few years, with projected P/E ratios decreasing from 271.4 in 2025 to 175.4 in 2027, suggesting an improving valuation as earnings grow [9][11]. - The company is well-positioned to capitalize on the recovery in the industrial robotics sector, with a reported 3.93% year-on-year growth in revenue from industrial and service robot components [4][11].

Group 1: Industry Outlook - The industry has four main characteristics: widespread product applications, clear market prospects, demand for high-end products due to intelligence, precision, and reliability, and a significant potential for high-end product import substitution due to the gap with developed countries [2]. Group 2: Company Performance - In 2024, the company's operating revenue increased by 5.24% year-on-year, while the net profit attributable to shareholders grew by 4.46% [3]. Group 3: Growth Drivers - The main drivers for the company's future profit growth include technological innovation, process innovation, product innovation, and enhancement of market position [3]. Group 4: Competitor Performance - Investors are advised to refer to the disclosed information of other major companies in the industry for comparative performance insights [3].