Core Viewpoint - The automotive parts company Fuda Co., Ltd. (603166.SH) has shown steady improvement in operational performance, driven by its transition to the new energy vehicle industry and a focus on technological innovation [2][4]. Financial Performance - For the first three quarters of 2025, Fuda achieved operating revenue of 1.413 billion yuan, a year-on-year increase of 27.32% - The net profit attributable to shareholders was 221 million yuan, up 83.27% year-on-year - The net profit excluding non-recurring gains and losses was 206 million yuan, reflecting a growth of 77.68% year-on-year [2][4][9]. Business Transformation - Fuda has fully transitioned towards the new energy vehicle sector, focusing on core businesses such as new energy hybrid crankshafts, new energy electric drive gears, and precision forgings, while also developing emerging strategic businesses like robot components [2][6]. - The company has made significant progress in its robot division, particularly in the development of planetary gear reducer products, with multiple models being developed and some entering the delivery phase [2][6]. Research and Development - Fuda has positioned "technological innovation" as a core driver of its development, with R&D expenses amounting to 78.73 million yuan for the first three quarters of 2025, representing an 18.46% increase year-on-year, and an R&D expense ratio of 5.57% [2][9]. Stock Performance and Incentives - As of October 23, 2025, Fuda's stock price was 15.92 yuan per share, reflecting a cumulative increase of over 109% since the beginning of the year - The company granted 1.707 million restricted stock units to 44 incentive recipients, which have appreciated by 2.334 million yuan [3][5]. Strategic Investments - Fuda has been actively investing in Longban Technology Co., Ltd., increasing its stake from 6% to 17% through phased capital increases, with plans for further acquisitions to enhance its product offerings in the robotics sector [7][8].

Summary of Fuda Co., Ltd. Conference Call Company Overview - **Company**: Fuda Co., Ltd. - **Date**: October 22, 2025 Key Points Financial Performance - **Q3 Revenue**: Achieved 476 million yuan, a year-on-year increase of 21.9% [3] - **Net Profit**: 75.26 million yuan, nearly 60% year-on-year growth [3] - **Excluding Non-recurring Items**: Net profit close to 72 million yuan, up 58.14% year-on-year [3] - **Q2 Investment Income**: 12 million yuan, not present in Q3, affecting sequential data [2][3] Response to Client Order Decline - **Market Share Increase**: Adjusted product structure to increase market share among other clients, e.g., market share in Seris increased from 30% to 70%, and in Chery from 20% to over 40% [4] - **Gross Margin Impact**: Slight decline in gross margin due to capacity ramp-up and reduced client orders, but overall net profit margin remained stable [2][5] Future Outlook - **Q4 Expectations**: Anticipates recovery in revenue and profit, with gross margin expected to improve back to H1 levels [2][7] - **Client Penetration Plans**: Current market share among major clients is close to 65%, with plans to gradually increase this and expand new client base [6] Business Segment Performance - **New Energy Electric Drive Gear Business**: Experienced a loss of approximately 23 million yuan in H1, but revenue normalized in Q3 due to client structure adjustments [8] - **Long Board Products**: Achieved production capacity since July, with significant improvements in product consistency and precision, currently operating nearly 70 units [9] Strategic Developments - **Reverse Planetary Roller Screw**: Completed audits and batch quotations for major clients, awaiting order confirmations [10] - **Production Capacity**: Currently has a capacity of 30,000 sets, with plans for cautious expansion based on demand [11] - **Collaboration with Domestic Automakers**: Engaging in technical exchanges with domestic main engine manufacturers for robotics applications [12] Investment and Financing - **Future Investments**: Plans for external investments to enhance capabilities, particularly in robotics, while maintaining a cautious approach to avoid blind investments [15][16] - **Convertible Bond Issuance**: Applied for issuance in July, indicating confidence from the controlling shareholder [19] Risk Management - **2026 Performance Outlook**: Despite challenges in 2025, expects to adjust client and capacity structures, with confidence in achieving growth in 2026 [18] Technology and Product Development - **Micro Screw Products**: Developing a 3.5 mm differential screw and working on a 1 mm screw for linear joints, currently in R&D phase [13] - **Cycloidal Gear Technology**: Longboard Technology is leading the development of national standards for cycloidal reducers, with a strong patent reserve [17] Additional Insights - **Market Trends**: Changes in design philosophies among overseas manufacturers may provide Fuda with competitive advantages in certain product lines [10]

Core Viewpoint - Fuda Co., Ltd. has made adjustments to its 2024 restricted stock incentive plan, including conditions for the first unlock period, repurchase and cancellation of certain shares, and adjustments to repurchase prices [1][7]. Group 1: Incentive Plan Overview - On September 3, 2024, Fuda Co., Ltd. approved the draft of the 2024 restricted stock incentive plan during its sixth board meeting [2]. - The plan was subsequently approved by the third extraordinary general meeting of shareholders on September 19, 2024, with the first grant of 7.2 million shares completed on October 11, 2024 [2]. Group 2: Unlock Conditions and Performance - The first unlock period for the restricted stock began on October 11, 2024, lasting until the last trading day of the 24 months following the grant date, with a 30% unlock ratio for the total granted shares [3]. - Company-level conditions were met, as there were no negative audit opinions for the most recent fiscal year. Individual conditions were also satisfied, with all performance assessments for the 44 primary incentive recipients being deemed competent [4]. Group 3: Repurchase and Cancellation Details - A total of 558,000 shares will be repurchased and canceled due to unmet performance targets in the new energy electric drive gear product sales and the departure of two incentive recipients [5][6]. - The repurchase price was adjusted from 2.25 CNY per share to 2.15 CNY per share following the company's annual equity distribution [7].

Group 1 - The company held its 28th meeting of the 6th Board of Directors on September 12, 2025, where all 9 directors attended, ensuring compliance with relevant laws and regulations [2][3][4] - The Board approved the proposal regarding the first unlock conditions of the 2024 restricted stock incentive plan, allowing 1,707,000 shares to be unlocked for 44 eligible participants [3][29][36] - The Board also approved the proposal to repurchase and cancel 558,000 shares of restricted stock due to unmet performance targets and the departure of two incentive participants [6][18][19] Group 2 - The repurchase includes 408,000 shares from 7 participants who did not meet the first unlock conditions and 150,000 shares from 2 participants who left the company [20][21][24] - The adjusted repurchase price is set at 2.15 yuan per share plus bank interest, with the total repurchase amount estimated at approximately 1.2047 million yuan [24][26] - Following the repurchase, the company's total share capital will decrease from 646,208,651 shares to 645,650,651 shares [25][40] Group 3 - The company has fulfilled all necessary decision-making procedures and disclosure obligations regarding the stock incentive plan and the repurchase of shares [17][31][37] - The legal opinion confirms that the repurchase and cancellation of shares comply with relevant laws and regulations, ensuring the legality and validity of the decisions made [27][37][44] - The company will notify creditors regarding the share repurchase and provide them with the opportunity to claim debts within specified timeframes [41][42]

Investment Rating - The report maintains an "Outperform the Market" rating for Fuda Co., Ltd. [4][6][20] Core Views - Fuda Co., Ltd. has shown stable growth in its main business areas, including crankshafts and gears, while also expanding its robotics segment, particularly in planetary gear reducers and screw drives [4][20] - The company achieved a revenue of 940 million yuan in the first half of 2025, representing a year-on-year increase of 30.3%, and a net profit of 146 million yuan, up 98.8% year-on-year [9][18] - The report highlights the successful development and mass production of new products in the hybrid crankshaft and electric drive gear sectors, indicating strong demand from major clients [2][20] Financial Performance Summary - In Q2 2025, Fuda Co., Ltd. reported a revenue of 466 million yuan, a year-on-year increase of 16.8%, and a net profit of 81 million yuan, up 93.3% year-on-year [9][18] - The gross margin for Q2 2025 was 28.5%, an increase of 4.9 percentage points year-on-year, reflecting improved profitability driven by scale effects and cost control measures [13][18] - The company forecasts net profits of 300 million, 390 million, and 490 million yuan for the years 2025, 2026, and 2027, respectively, with corresponding EPS of 0.47, 0.60, and 0.76 yuan [4][5][20] Business Development Summary - Fuda Co., Ltd. has accelerated its product development in the hybrid crankshaft sector, completing nine new product developments for clients such as Li Auto and BYD [2][20] - The robotics division is advancing with multiple product models in the planetary gear reducer business, with one product entering small batch delivery and two in sample testing [3][18] - The company has successfully established a high-precision production line for planetary screw drives, significantly enhancing its production capacity [3][18]

Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative performance increase of over 15% against the benchmark index in the next 6 to 12 months [8] Core Views - The company has shown strong performance in its Q2 results, with revenue reaching 940 million yuan, a year-on-year increase of 30.3%, and a net profit of 146 million yuan, up 98.8% year-on-year [5] - The growth is attributed to the gradual release of crankshaft production capacity and the successful trial production of hybrid crankshafts, with an annual production line capacity of 1.8 million units [5] - The company is expanding its footprint in the humanoid robotics sector through a strategic investment in Changban Technology, which has achieved an annual production capacity of 30,000 screw rods [5] - The report highlights the potential for significant growth in the company's electric drive gear business and the development of its robotics business, which is expected to enter a commercial phase soon [5] Financial Summary - The company forecasts revenue growth from 1.35 billion yuan in 2023 to 3.9 billion yuan by 2027, with a compound annual growth rate (CAGR) of approximately 20% [3] - Net profit is projected to increase from 104 million yuan in 2023 to 542 million yuan in 2027, reflecting a CAGR of around 24% [3] - The report indicates a significant improvement in profitability, with gross margins expected to rise from 25% in 2024 to 28.3% in 2027 [7] Business Development - The company is benefiting from the increasing demand for hybrid vehicles, with partnerships established with leading manufacturers such as BYD and Chery [5] - The robotics sector is being actively developed, with a dedicated technical team formed to enhance the company's capabilities in producing robot reducers [5] - The report emphasizes the strategic importance of the company's investments in technology and production capacity to support long-term growth in both the automotive and robotics sectors [5]

Core Viewpoint - Fuda Co., Ltd. has demonstrated stable growth in its operating performance, with significant increases in revenue and net profit in the first half of 2025 [2][3]. Financial Performance - In the first half of 2025, the company achieved operating revenue of 937 million yuan, a year-on-year increase of 30.26% [2]. - The net profit for the same period was 146 million yuan, reflecting a year-on-year growth of 98.77% [2]. - The net profit margin improved from 10.23% in the first half of 2024 to 15.61% in 2025 [2]. - The gross profit margin increased from 24.04% to 27.8% during the same period [2]. - The return on equity reached 5.95%, up by 2.66 percentage points year-on-year [2]. - The net cash flow from operating activities was 282 million yuan, marking an 81.28% increase [2]. - The cash on hand at the end of the period was 238 million yuan, a 47.57% increase [2]. Business Drivers - The growth in revenue is attributed to increased demand for passenger car crankshafts, particularly in the hybrid power sector [2]. - The company has focused on quality improvement and cost reduction, leading to enhanced efficiency [2]. - The transfer of a 25% stake in a joint venture has optimized resource allocation and increased investment income [2]. Industry Position - Fuda Co., Ltd. primarily engages in the research, production, and sales of crankshafts, precision forgings, and other components for various machinery [3]. - The company has transitioned towards the new energy vehicle sector, with a focus on hybrid crankshafts and electric drive gears [3]. - Fuda is a key supplier of hybrid crankshafts to major automotive manufacturers such as BYD, Geely, and Great Wall [3]. Market Performance - As of August 11, the company's stock price was 17.7 yuan per share, with a year-to-date increase of over 146.86% [4].

Summary of Conference Call for Hengda Co., Ltd. Company Overview - **Company**: Hengda Co., Ltd. - **Industry**: Automotive components and manufacturing Key Points and Arguments Financial Performance - Hengda Co., Ltd. expects a net profit growth of 87% to 101% in the first half of 2025, reaching between 132 million to 142 million yuan, primarily due to capacity ramp-up [2] - The company achieved a net profit of 145 million to 155 million yuan in the first half of 2025, representing a year-on-year increase of 97.15% to 111.74% [3] - The second quarter performance showed a sequential improvement from the first quarter, driven by gradual capacity ramp-up despite a challenging automotive market [3] Production Capacity and Strategy - Longban Technology's four-stage capacity has reached production ahead of schedule, with actual output exceeding expectations due to new equipment and upgrades to existing machinery [2][4] - The company maintains its capacity expansion plan, targeting 4.2 million sets by the end of 2025 and 5.5 million sets by the end of 2026 [2][5] - Despite initial lower orders from major clients in Q2, production has recovered in June and July, with the company confident in meeting its annual supply target of 2.5 million sets [2][6] Market and Pricing Strategy - Hengda Co., Ltd. has proactively adjusted its pricing strategy to expand market share, implementing moderate price reductions that have not significantly impacted overall profit margins due to scale effects and cost control [2][7] - The commercial vehicle sector has outperformed expectations, with capacity utilization gradually increasing, potentially becoming a significant profit growth driver [2][8] New Business Developments - The new energy electric drive gear business has shown promising growth, achieving monthly revenues in the tens of millions [2][9] - The Tibet factory has commenced production and is expected to ship several thousand units in the second half of the year, exceeding initial expectations [2][15] - The company is preparing production lines for the new hundred-line detector product, which has garnered interest from domestic and international clients [2][18] Future Outlook - Hengda Co., Ltd. plans to increase its overseas business presence to mitigate potential pressures from the automotive market in the coming year [3] - The company is considering investments in other industries and product lines to enhance its core component capabilities and system integration [2][29] Additional Insights - The commercial vehicle segment is projected to generate revenues between 200 million to 300 million yuan, with a high gross margin but net profit margin constrained by overall capacity utilization [2][8] - The company has received scale orders for its roller four-cylinder products and is preparing to meet these demands [2][25] - The pricing strategy for the hundred-line detector is set to be competitive with mid-to-high-end products, with expectations of lower costs upon scaling production [2][20] This summary encapsulates the key insights from the conference call, highlighting Hengda Co., Ltd.'s financial performance, production strategies, market positioning, and future outlook.

Core Viewpoint - Fuda Co., Ltd. plans to establish a wholly-owned subsidiary, Guilin Fuda Drive Technology Co., Ltd., to take over the business of its existing subsidiary, New Energy Electric Drive, which will be subsequently deregistered [1][2] Group 1: Company Restructuring - The establishment of Guilin Fuda and the deregistration of New Energy Electric Drive will help the company optimize resource allocation and improve operational efficiency [2] - The new subsidiary will have independent legal status, facilitating related production and operational activities [2] - The transfer of employees from the New Energy Electric Drive to the new subsidiary will be conducted in accordance with national laws and regulations [2] Group 2: Financial Impact - The assets being contributed to the new subsidiary are valued at 475 million yuan (including tax) as per the asset evaluation report [1] - The contribution will consist of 470 million yuan allocated to the registered capital of the new subsidiary, with the remaining amount going to capital reserves [1] - The restructuring will not lead to significant changes in the company's consolidated financial statements or affect its business development and profitability [2][4] Group 3: Business Development - Fuda Co., Ltd. has been transitioning towards the new energy vehicle industry, focusing on new energy hybrid crankshafts and electric drive gears [2] - The company has secured multiple project allocations from major clients such as BYD, gaining entry into three strategic customer systems in 2024 [3] - Recent investments include a project for ultra-precision gears for electric drive systems and robotic transmission components in Pinghu Economic and Technological Development Zone [3]

Core Viewpoint - The company, a leader in crankshafts, is leveraging opportunities in the new energy and robotics sectors to create new growth trajectories [1][5]. Group 1: Company Overview and Growth Strategy - Established in 1995 and listed in 2014, the company specializes in crankshafts, clutches, precision forgings, gears, and bolts, positioning itself as a domestic leader in crankshafts [1][12]. - In 2022, the company entered the new energy sector with electric drive gears and plans to develop robotic gear products by 2024, indicating a strategic shift towards new growth areas [1][5]. Group 2: Crankshaft Demand and Market Dynamics - The demand for crankshafts is expected to rise due to the increasing sales of hybrid vehicles, which still require crankshafts despite the rise of pure electric vehicles [2][48]. - The company has successfully transitioned its crankshaft business from commercial vehicles to passenger vehicles, with over 50% of its crankshaft supply for BYD in 2024 [2][58]. - A new production line with a capacity of 1 million hybrid crankshafts is expected to be operational by May 2025, further enhancing the company's market position [2][53]. Group 3: New Energy Gear Expansion - The company established a new energy electric drive technology subsidiary in May 2022, investing 408 million yuan to develop precision gear products, with production expected to start in July 2024 [3][18]. - The company has secured multiple projects with major clients like BYD and Geely, indicating strong demand for its new energy gear products [3][18]. Group 4: Robotics Business Development - In 2024, the company entered the robotics sector by acquiring a 35% stake in Changban (Yangzhou) Robot Technology, showcasing its commitment to diversifying its business [5][18]. - The company aims to leverage its existing customer base and technical expertise in precision gears to establish a foothold in the robotics market [5][18]. Group 5: Financial Performance and Projections - The company experienced a significant rebound in 2022, with revenues of 1.135 billion yuan, a 37.5% decline from the previous year, but is projected to achieve revenues of 1.648 billion yuan in 2024, a 21.89% increase [24][25]. - Forecasts suggest revenues of 2.434 billion yuan, 3.019 billion yuan, and 3.394 billion yuan from 2025 to 2027, with corresponding net profits of 301 million yuan, 385 million yuan, and 460 million yuan [6][25].