Investment Rating - The report assigns an "Add-A" rating to the company, indicating a positive outlook for its stock performance in the near term [1][9]. Core Views - The company has established a dual pillar structure with its industrial automation and new energy vehicle (NEV) businesses, which are expected to drive growth. The NEV segment is particularly highlighted for its rapid expansion, while the industrial automation sector maintains a strong market position [4][9]. - The company aims for a sales revenue growth of 10%-30% and a net profit growth of 5%-25% for 2025, reflecting its optimistic growth strategy [4]. Financial Performance - In 2024, the company achieved a revenue of 37.041 billion yuan, a year-on-year increase of 21.77%, while the net profit was 4.285 billion yuan, a decrease of 9.62% [4]. - The first quarter of 2025 showed a significant revenue increase of 38.28% year-on-year, reaching 8.978 billion yuan, with a net profit growth of 63.08% [4]. - The company's revenue from the NEV and rail transit business reached 16.642 billion yuan in 2024, marking a 67.76% increase year-on-year, contributing 44.93% to total revenue [4]. Business Segments - The general automation business remains a leader in the market, with a domestic market share of approximately 28.3% for general servo systems and 18.6% for low-voltage frequency converters [5]. - The NEV business is a key growth driver, with sales revenue of around 16 billion yuan in 2024, reflecting a growth of about 70% year-on-year [6]. - The company is actively pursuing the development of humanoid robots, focusing on core component R&D and manufacturing, which is expected to become a third growth engine in the medium to long term [8][9]. Market Position - The company holds a strong competitive position in the NEV sector, ranking second in the domestic market for electric motor controllers with a market share of 10.7% [6]. - The report emphasizes the company's ongoing efforts to enhance its capabilities in the process industry, which is expected to grow faster than the overall automation sector [5]. Financial Projections - The company forecasts revenues of 45.195 billion yuan for 2025, with a year-on-year growth of 22% [11]. - The projected earnings per share (EPS) for 2025 is 1.98 yuan, with corresponding price-to-earnings (P/E) ratios of 34.5 for 2025, 28.4 for 2026, and 24.5 for 2027 [13][15].

Investment Rating - The report assigns an "Add-A" rating to the company, marking its first coverage [1]. Core Insights - The company has established a dual pillar structure with industrial automation and new energy vehicle (NEV) businesses. It is expected to enhance its market share in high-end scenarios and process industries while also expanding its NEV business, particularly through the progress of its joint venture, United Power, towards domestic listing [10]. Financial Performance - In 2024, the company achieved operating revenue of 37.041 billion yuan, a year-on-year increase of 21.77%. However, the net profit attributable to the parent company was 4.285 billion yuan, down 9.62% year-on-year. The first quarter of 2025 saw a significant revenue increase of 38.28% year-on-year, reaching 8.978 billion yuan, with net profit rising by 63.08% to 1.323 billion yuan [4][5]. - The company aims for a sales revenue growth of 10%-30% and a net profit growth of 5%-25% in 2025 [4]. Business Segments - The NEV and rail transit business generated revenue of 16.642 billion yuan in 2024, up 67.76% year-on-year, contributing 44.93% to total revenue. The gross margin for this segment was 17.12%, an increase of 0.57 percentage points [5]. - The general automation business reported revenue of 15.243 billion yuan, a modest increase of 1.36% year-on-year, with a gross margin of 42.03%, down 1.93 percentage points [5]. - The smart elevator business faced a decline, with revenue of 4.939 billion yuan, down 6.65% year-on-year, and a gross margin of 25.86%, down 2.88 percentage points [5]. Market Position - The company holds a leading position in the general automation sector, with a market share of approximately 28.3% in general servo systems and 18.6% in low-voltage frequency converters, both ranking first in the domestic market [6]. - In the NEV sector, the company ranks second in the domestic market for electric motor controllers with a market share of 10.7% and fourth for electric drive assemblies with a market share of 6.3% [7]. Future Outlook - The company is focusing on enhancing its capabilities in digitalization and large PLC fields, anticipating that the growth in process industries will outpace the overall automation sector [6]. - The projected earnings per share (EPS) for 2025-2027 are 1.98, 2.41, and 2.79 yuan, respectively, with corresponding price-to-earnings (P/E) ratios of 34.5, 28.4, and 24.5 based on the closing price of 68.30 yuan on May 19 [10].