Investment Rating - The report maintains an investment rating of "Buy" for the company [1] Core Insights - The company has launched multiple new robotic core components, enhancing its product matrix and performance parameters, positioning itself to benefit from future breakthroughs in humanoid robot mass production [1] - The humanoid robot industry is expected to gain momentum, with major companies like Tesla planning to showcase mass-producible prototypes, which will likely accelerate orders for core components from suppliers [2] - The company has introduced several new motor and driver products, including micro frameless motors and high-power density drivers, which exhibit superior specifications and performance [3] - The company has partnered with joint ventures to release innovative hand and joint solutions, emphasizing lightweight and durability, suitable for various industries [4] Financial Forecast and Valuation - The company is projected to achieve net profits of 271 million, 313 million, and 361 million RMB for the years 2025 to 2027, respectively, with corresponding EPS of 1.27, 1.46, and 1.69 RMB [5] - The target price for the company is set at 116.80 RMB, reflecting a PE ratio of 80 times for 2026, indicating a potential valuation premium due to its strong market position and product advantages [5]

Core Viewpoint - Zhaowei Electromechanical is a leading enterprise in the micro drive system sector, focusing on R&D and production, with a strong technical foundation and full industry chain advantages [1] Group 1: Business Performance - In Q3 2025, Zhaowei Electromechanical reported revenue of 1.255 billion yuan, ranking 14th in the industry, significantly lower than the top competitors [2] - The main business composition includes micro drive systems at 498 million yuan (63.25%), precision parts at 239 million yuan (30.44%), and precision molds and other products at 49.639 million yuan (6.31%) [2] - The net profit for the same period was 181 million yuan, ranking 7th in the industry, outperforming the industry average [2] Group 2: Financial Ratios - As of Q3 2025, the asset-liability ratio was 19.58%, lower than the industry average of 35.64%, indicating strong solvency [3] - The gross profit margin was 32.24%, higher than the industry average of 21.03%, reflecting robust profitability [3] Group 3: Executive Compensation - The chairman, Li Haizhou, received a salary of 1.7784 million yuan in 2024, an increase of 538,100 yuan from 2023 [4] - The general manager, Ye Shubing, had a salary of 1.7792 million yuan in 2024, also reflecting a significant increase from the previous year [4] Group 4: Shareholder Information - As of September 30, 2025, the number of A-share shareholders decreased by 8.28% to 51,000 [5] - The average number of circulating A-shares held per shareholder increased by 9.63% to 4,066.22 [5] Group 5: Growth Drivers - The company experienced steady growth in automotive electronics, transitioning from precision components to system-level solutions, with long-term partnerships with major clients [6] - Humanoid robots emerged as a second growth engine, with breakthroughs in technology and the launch of the ZWHAND series products [6] - Plans for a new production base in Thailand with an investment of up to 100 million USD were approved by the board [6] - An application for H-share listing was submitted to the Hong Kong Stock Exchange to raise funds for global R&D and capacity expansion [6] Group 6: Market Outlook - The company is deeply engaged in the robotics sector, with innovative products in the pipeline, and projected net profits for 2025-2027 are estimated at 270 million, 328 million, and 418 million yuan respectively [7]

Summary of Zhaowei Electromechanical Conference Call Company Overview - Zhaowei Electromechanical has launched two new dexterous hands: DM17 and LM06, targeting different applications in home and industrial settings respectively [2][3]. Product Features and Applications - **DM17**: - Designed for home use with 17 degrees of freedom - Utilizes linear motor drive - Finger pressure ranges from 5 to 12 Newtons - Capable of enduring over one million cycles - Available for purchase on JD.com and Zhaowei's official website [4][5]. - **LM06**: - Designed for factory repetitive tasks with 6 active degrees of freedom - Grip strength of 200 Newtons and fingertip pressure of 15 to 20 Newtons - Aimed at high-load scenarios [4][5]. Technical Advancements - Zhaowei has developed three types of brushless hollow cup motors and a micro ball screw linear drive module, achieving over 30% efficiency improvement and a module efficiency greater than 95% [7]. - The company has also made significant advancements in tactile sensors, achieving a collection frequency of over 100 Hz and a lifespan exceeding 1 million cycles [10]. Market Position and Competitive Landscape - DM17 is positioned as a leading product in the market with 17 active degrees of freedom, while competitors like Linxingqiao offer 18 to 21 degrees [11]. - The tactile sensor technology varies among manufacturers, with Zhaowei adopting piezoresistive and piezoelectric technologies, while others like Mingxingqiao use capacitive solutions [12][13]. Industry Development Stage - The dexterous hand industry is currently in a standardization and ecosystem-building phase, with a trend towards higher degrees of freedom and enhanced multi-modal perception capabilities [14]. - The cost of dexterous hands is decreasing as the industry matures, with products like Mingxingqiao's priced at 8,800 Yuan and Huilin's at 2,999 Yuan [15]. Future Outlook - Zhaowei plans to continue developing the DM series with models DM18, DM19, and DM20, focusing on increasing degrees of freedom and collaborative ecosystem development [8]. - The company has applied for 26 patents and is involved in setting industry standards, maintaining a fully self-developed core component strategy [9]. Valuation and Investment Potential - Zhaowei's current market capitalization is approximately 24.7 billion Yuan, with a reasonable valuation of its main business at around 10 billion Yuan [20]. - If Zhaowei establishes itself as a dexterous hand module provider, the expected unit value could reach 50,000 Yuan, reflecting a potential market for 60,000 units [20][21]. Key Factors for Industry Growth - Continuous exploration of products and downstream application scenarios, along with industry standards and ecosystem cooperation, are critical for the development of the dexterous hand industry [18]. Potential Participants in the Industry - Future participants may include leading humanoid robot manufacturers and third-party companies specializing in dexterous hands, providing standardized products to robot manufacturers [19].

Investment Rating - The report maintains a "Buy" rating for the company [10][12]. Core Viewpoints - The company is a leading player in both the driver and controller sectors in China, with a strong focus on humanoid robots, which are expected to drive significant growth in the motion control industry [3][7]. - The company has launched new products, including high-power density motors and micro servo drivers, enhancing its capabilities in providing core components for robotic systems [3][9]. - The automation industry is anticipated to experience a cyclical recovery, driven by domestic substitution and emerging demand, which will likely contribute to the company's rapid growth [3][8]. Summary by Sections Company Overview - The company has undergone three entrepreneurial phases since its establishment in 1997, focusing on motion control technology and expanding into general automation and humanoid robotics markets [7][22][25]. - The founder, with a strong technical background, emphasizes R&D, with over 33% of employees in R&D and a research expense ratio exceeding 12% [7][27][28]. Product and Market Strategy - The company has transitioned from a controller-centric approach to a platform-based layout that includes drivers and motors, establishing a comprehensive product range [8][38]. - The company has seen a significant increase in its market share in the servo system sector, with a rise to 3.6% in Q1 2025, ranking second among domestic competitors [8][61]. Financial Performance - The company achieved a revenue of 1.584 billion yuan in 2024, marking an 11.93% year-on-year increase, with a net profit of 200 million yuan, up 44.7% [42][45]. - The gross margin for the control technology segment remains high at over 65%, reflecting the company's strong pricing power and customer loyalty [45]. Marketing and Sales Strategy - The company has shifted its marketing strategy from direct sales to a channel-based approach, increasing the proportion of revenue from distributors from 24.6% in 2021 to 48.3% in 2024 [49][50]. - The company is focusing on expanding its presence in emerging markets and enhancing its product offerings to drive sales growth [49][50]. Future Outlook - The humanoid robot market is expected to grow rapidly, with the company positioned to benefit from this trend through its advanced component solutions [9][65]. - The company forecasts net profits of 263 million, 335 million, and 420 million yuan for 2025, 2026, and 2027, respectively, indicating a strong growth trajectory [10].

Group 1: Investor Relations Activities - The company held an earnings briefing on May 8, 2025, via the investor relations interactive platform [3] - Key attendees included the General Manager, Financial Officer, Board Secretary, and Sponsor Representative [3] Group 2: Order and Product Development - The company is currently in the R&D and sample testing phase for humanoid robot components, with no large-scale supply yet [5] - The company has initiated the construction of a motor factory in Thailand, expected to be operational within 2025 [5] - The company is focusing on precision motion control products, including linear actuators and brushless motors, to enhance its market position [8] Group 3: Strategic Partnerships and Collaborations - The company maintains a long-term strategic partnership with Mindray Medical, supplying core components for medical devices [7] - The company has established a global marketing network, successfully expanding its customer base in non-U.S. markets since 2024 [5] Group 4: Shareholder Value and Market Management - The company plans to enhance shareholder returns through cash dividends, stock buybacks, and mergers and acquisitions [8] - The company emphasizes investor relations management to effectively communicate its value creation potential to the market [9] Group 5: Product Offerings and Innovations - The company has developed various linear transmission products, including T-type screws and ball screws, with high precision specifications [10] - The company aims to provide high-performance, high-precision products in the robotics sector, focusing on key components like hollow cup motors and precision gearboxes [12] Group 6: New Ventures - The establishment of Changzhou Dingzhi New Energy Co., Ltd. aims to integrate resources for the development of electric motors and battery packs, promoting sustainable growth [13]