Summary of Silver Wheel Co., Ltd. Conference Call Company Overview - **Company**: Silver Wheel Co., Ltd. (银轮股份) - **Industry**: Robotics and Automotive Components Key Points and Arguments Financial Performance - Silver Wheel's Q2 performance is expected to exceed market expectations, with actual growth projected to be over 10% [2][3] - The company anticipates that its H1 performance guidance will not require significant downward revision, maintaining an initial target of 1.05 billion yuan [2][3] Growth Drivers - The data center and commercial vehicle thermal management businesses are identified as new growth engines, expected to contribute 300-400 million yuan in revenue and 30-40 million yuan in profit increment [2][4] - Despite a revenue downgrade from 1.7 billion yuan to approximately 1.4 billion yuan for a key North American client, the company has managed to achieve growth through product category expansion [4] Robotics Business - Silver Wheel holds a leading position in the humanoid robotics sector, with a market capitalization of approximately 23 billion yuan and an annual growth rate exceeding 20% in its main business [5] - The company is strategically focusing on core components such as linear joints, rotary joints, and dexterous hands, with significant order volumes indicating a potential increase in market share [5][6] Market Concerns - There are concerns regarding the structural differences between domestic and overseas supply chains, particularly related to client F's confirmation issues. However, these concerns are deemed unnecessary due to the distinct organizational forms of chains F and T [7][8] - The market is experiencing significant divergence regarding client T's assembly progress and industry chain structure, with a cautious approach from the company in communicating with core clients [9] Future Outlook - Silver Wheel is expected to continue its strategic layout in core components starting Q3, with a large order volume for flying rotary assemblies indicating substantial market potential [6][10] - The company’s strong customer service system and R&D capabilities are seen as key competitive advantages, positioning it well for future growth in both domestic and international markets [10][11] Overall Sentiment - The long-term outlook for Silver Wheel is positive, with expectations of continued performance exceeding market predictions, particularly in the humanoid robotics sector [11]

Core Viewpoint - The company's Q1 performance met expectations with revenue and net profit showing significant year-on-year growth, indicating a positive trend in business operations and financial health [1][2]. Financial Performance - Q1 revenue reached 3.416 billion yuan, a year-on-year increase of 15.1% - Net profit attributable to shareholders was 212 million yuan, up 10.9% year-on-year - Non-recurring net profit attributable to shareholders was 208 million yuan, reflecting a 16.3% year-on-year growth - Gross margin slightly decreased to 19.8%, down 1.0 percentage points year-on-year, primarily due to annual pressure [1] Cost and Cash Flow - Operating expense ratio improved to 10.7%, down 1.6 percentage points year-on-year, with reductions in sales, management, and R&D expense ratios - Financial expense ratio decreased by 0.8 percentage points due to increased exchange gains - Net cash flow from operating activities improved to -135 million yuan, compared to -638 million yuan in the same period last year, driven by increased cash receipts from sales [1] Business Segments - Passenger vehicle revenue grew approximately 10% year-on-year, with the new energy segment increasing by about 21% - Commercial vehicle and digital energy business revenues rose by approximately 12% and 50% respectively - The energy storage business is expected to grow rapidly due to rising customer demand, while the diesel generator thermal management business is entering a capacity ramp-up phase [2] International Expansion - Q1 overseas sales revenue was approximately 880 million yuan, accounting for 25.85% of total revenue - North American profitability continues to improve, and the European Setrab company has turned profitable - The company plans to accelerate overseas development, including the construction of a third factory in Mexico and expansion in Poland and Malaysia [2] Future Outlook - EPS forecasts for 2025-2027 are projected at 1.26, 1.63, and 2.02 yuan respectively - The average PE ratio for comparable companies in 2025 is estimated at 24 times, with a target price set at 30.24 yuan, maintaining a buy rating [3]