Core Viewpoint - The market perceives the company as a traditional home appliance manufacturer with limited growth potential in sectors like vacuum cleaners, leading to developmental bottlenecks. However, the company possesses two core capabilities that can facilitate its diversification: refined management skills and precise investment and acquisition capabilities [1] Group 1: Core Capabilities - The company excels in cost control and product quality management, maintaining a leading profitability level in the industry due to its solid manufacturing foundation as an OEM [1] - Historical acquisitions, such as the purchase of the automotive die-casting company Pache in 2021 and the PCBA company Lihua in 2023, have been successfully integrated into larger subsidiaries, significantly enhancing profitability. Currently, these acquisitions contribute approximately 30% to the company's revenue and are expected to further support diversification into other fields [1] Group 2: Overseas Production and Profitability - The company's overseas home appliance production capacity was fully transferred after the tariff event in Q2 2025, leading to initial pressure on net profit margins due to transition costs. Historical data suggests that the impact on net profit margins lasts about three quarters, after which production efficiency improves significantly [2] - The profitability of Pache is gradually increasing, with a full order book. The Thai automotive die-casting factory is expected to reach a production scale of $100 million, primarily supplying major U.S. clients. The automotive die-casting business is anticipated to drive overall net profit margin improvements due to its superior profitability compared to the home appliance sector [2] Group 3: Emerging Business Opportunities - The acquisition of Lihua Technology, focused on PCBA, opens up extensive downstream applications in communications and consumer electronics. The company possesses advanced technology capable of meeting the production requirements for AI products [2] - The company's investments in motor technology extend into the robotics sector, and it is also investing in the digital chip unicorn Cloud Leopard Intelligence, indicating a broadening of its business landscape [2] Group 4: Earnings Forecast and Investment Recommendation - The company is projected to achieve earnings per share of 1.47, 2.03, and 2.37 yuan for the years 2025 to 2027. Based on comparable company valuation methods, a target price of 42.63 yuan is set for 2026, with an initial "buy" rating assigned [3]