Summary of HMS Networks Capital Markets Day Company Overview - **Company**: HMS Networks (OM:HMS) - **Event**: 2025 Capital Markets Day - **Date**: September 09, 2025 Key Industry Insights - **Industry Focus**: Industrial communication solutions, factory automation, and process industry - **Market Dynamics**: The industry is experiencing behavioral and technological shifts, with a focus on AI and ARR (Annual Recurring Revenue) models [2][3][6] Core Company Strategies - **Five Pillars**: HMS Networks emphasizes five pillars: access, insights, visualize, connect, and diagnose, which are expected to remain relevant over the next five years [3] - **Market Position**: HMS Networks considers itself a dominant player in a fragmented market, with no single competitor offering the same comprehensive solutions across all segments [5][4] - **M&A Strategy**: The company aims to expand its portfolio through acquisitions, focusing on profitable companies with established management teams and a compatible culture [19][20][27] Financial Performance and Projections - **Market Share**: The company has an 8% market share in the INT segment, with a larger share in embedded business compared to gateways [11] - **Revenue Growth**: The target is to achieve organic growth of around 8% annually, in line with market growth, with a focus on improving gross margins [29][64] - **Investment in R&D**: Significant investments in R&D are planned to support product development and enhance competitive positioning [29][51] Competitive Landscape - **Competitors**: The competitive landscape includes various fragmented technology providers, with specific competitors in niches such as remote access and switches [7][9] - **Emerging Trends**: There is a shift towards customers preferring complete industrial communication solutions rather than building their own [7][75] Technology and Product Development - **AI and Data Utilization**: The integration of AI is expected to enhance product offerings and reduce development costs, although there is caution regarding potential new competition [81][83] - **Wireless Solutions**: The company sees potential in wireless technology, particularly in logistics and remote applications, but acknowledges slow adoption in factory settings [66][68] Geographic Focus - **China Strategy**: HMS Networks is selectively targeting opportunities in China, focusing on less government-controlled sectors and leveraging local supply chains [34][36] Customer Segmentation - **Target Customers**: The company segments its customer base into OEMs (45%), system integrators (30%), and end users (25%), with a focus on expanding relationships with system integrators [22] Conclusion - **Future Outlook**: HMS Networks is positioned for growth through strategic investments, a focus on technology synergies, and a commitment to enhancing its market presence in both existing and new industries [25][36][64]

Core Insights - The article emphasizes the importance of intelligent and digital communication systems in substations as part of the new power system construction, highlighting the transition from traditional communication devices to industrial Ethernet switches as a core component for automation [2][3]. Group 1: Product Features - The Fiberroad FR-WIST series industrial switches are specifically designed for the unique requirements of the power industry, offering features such as multi-optical and electrical interface combinations to accommodate various terminal access needs [3]. - The switches are built to operate in extreme conditions, with a wide temperature range of -40℃ to +75℃ and a fanless cooling structure, ensuring stable performance in high humidity and strong electromagnetic interference environments [3]. - The FR-WIST series meets essential power industry standards, including surge protection and lightning resistance, and complies with relevant power communication specifications like DL/T 1214 [3]. Group 2: Application Scenarios - In the process layer, the FR-WIST series supports high-speed data exchange for devices such as field merging units and protection measurement and control devices, ensuring stable transmission of control commands and real-time sampling data [4]. - The rack-mounted products in the station control layer provide high-density ports and performance capabilities, facilitating the aggregation of station data to dispatch platforms or main control systems for remote management and intelligent scheduling [4]. Group 3: Industry Trends - The power system is rapidly advancing towards cleaner, digital, and interactive models, with intelligent substations being critical nodes that require communication systems capable of supporting future technologies like edge computing and remote control [5]. - The FR-WIST series has received high recognition in multiple transmission and transformation projects, showcasing its industrial-grade performance and adaptability to power scenarios [5][6].