Investment Rating - The investment rating for the company is "Outperform the Market" [5][25]. Core Views - The company has officially entered the humanoid robot business and has initiated core component research and development [3]. - The company's revenue for Q1 2025 increased by 38.28% year-on-year, while net profit grew by 63.08%, primarily driven by the strong performance in the new energy vehicle and general automation sectors [1][8]. - The company is expected to see a net profit of 53.17 billion yuan in 2025 and 64.47 billion yuan in 2026, with a projected price-to-earnings ratio of 34/28/24 times [3]. Financial Performance - In 2024, the company achieved a revenue of 370.41 billion yuan, a year-on-year increase of 21.77%, but net profit declined by 9.62% to 42.85 billion yuan [1]. - The gross margin for 2024 was 28.70%, down 4.85 percentage points year-on-year, while the net margin was 11.73%, down 3.97 percentage points [1]. - The company’s revenue from the general automation business in 2024 was 152.43 billion yuan, accounting for 41.15% of total revenue, with a year-on-year growth of 1.36% [2]. Business Segments - The new energy vehicle and rail transit revenue reached 166.42 billion yuan in 2024, representing a significant year-on-year increase of 67.76% [2]. - The smart elevator business generated 49.39 billion yuan in revenue, a decline of 6.65% due to weak market demand [2]. - In Q1 2025, revenue from new energy vehicles and rail transit was approximately 39 billion yuan, growing by 66% year-on-year [2]. Profitability and Cost Structure - The company’s operating expenses for 2024 included a sales expense ratio of 4.00%, a management expense ratio of 4.16%, and a research and development expense ratio of 8.50% [1]. - The gross margin improved to 30.98% and the net margin to 14.96% in Q1 2025, reflecting a year-on-year improvement of 1.13 and 2.28 percentage points, respectively [1].

Investment Rating - The investment rating for the company is "Outperform the Market" [5][25]. Core Views - The company has officially entered the humanoid robot business and has initiated core component research and development [3]. - The company's revenue for Q1 2025 increased by 38.28% year-on-year, while net profit grew by 63.08%, primarily driven by the strong performance in the new energy vehicle and general automation sectors [1][8]. - The company is expected to see a net profit of 53.17 billion yuan in 2025 and 64.47 billion yuan in 2026, with a projected price-to-earnings ratio of 34/28/24 times [3]. Financial Performance - In 2024, the company achieved a revenue of 370.41 billion yuan, a year-on-year increase of 21.77%, but net profit declined by 9.62% to 42.85 billion yuan [1]. - The gross margin for 2024 was 28.70%, down 4.85 percentage points year-on-year, while the net margin was 11.73%, down 3.97 percentage points [1]. - The company’s revenue from the general automation business in 2024 was 152.43 billion yuan, accounting for 41.15% of total revenue, while the new energy vehicle and rail transit revenue reached 166.42 billion yuan, representing a 67.76% increase [2]. Business Segments - The general automation business continues to grow, with a revenue of approximately 41 billion yuan in Q1 2025, up 29% year-on-year [2]. - The new energy vehicle and rail transit revenue for Q1 2025 was about 39 billion yuan, reflecting a 66% year-on-year growth [2]. - The smart elevator business saw a revenue of 49.39 billion yuan in 2024, but this segment experienced a decline of 6.65% due to weak market demand [2]. Profitability and Cost Structure - The company’s gross margin improved to 30.98% in Q1 2025, an increase of 1.13 percentage points year-on-year, while the net margin rose to 14.96%, up 2.28 percentage points [1]. - The selling expense ratio for 2024 was significantly reduced to 4.00%, indicating improved cost management [1]. Future Projections - Revenue projections for the company are as follows: 48.34 billion yuan in 2025, 61.80 billion yuan in 2026, and 75.86 billion yuan in 2027, with respective growth rates of 30.5%, 27.9%, and 22.7% [4][23]. - The expected net profit for 2025 is 53.17 billion yuan, with a growth rate of 24.1% compared to 2024 [4][23].

Investment Rating - The investment rating for the company is "Buy" and is maintained [9] Core Views - The company reported a revenue of 37.041 billion yuan for 2024, representing a year-on-year growth of 21.77%. However, the net profit attributable to shareholders decreased by 9.62% to 4.285 billion yuan, while the net profit excluding non-recurring items was 4.036 billion yuan, down 0.87% [2][6] - In Q1 2025, the company achieved a revenue of 8.978 billion yuan, marking a year-on-year increase of 38.28%. The net profit attributable to shareholders surged by 63.08% to 1.323 billion yuan, and the net profit excluding non-recurring items rose by 55.87% to 1.234 billion yuan [2][6] - The company continues to see high growth in the new energy vehicle sector, with revenue growth of 68% in 2024 and 66% in Q1 2025. The general automation business is showing signs of recovery, with a growth of 1% in 2024 and 28% in Q1 2025 [2][12] - The company is focusing on strategic initiatives, including humanoid robots and AI, which are expected to create new growth drivers. The company has developed low-voltage high-power drivers and other components for humanoid robots, with promising performance in internal tests [12][12] Summary by Sections Financial Performance - For 2024, total revenue was 37.041 billion yuan, with a gross profit margin of 29%. The net profit margin was 11.6% [16] - In Q1 2025, the company reported a net profit margin of 14.96%, an increase of 2.3 percentage points year-on-year [12][12] Business Segments - The new energy vehicle and rail transit businesses showed significant growth, with respective year-on-year increases of 68% and 66% in 2024 and Q1 2025. The general automation business also showed recovery with a 28% growth in Q1 2025 [12][12] - The company’s market share in key product categories such as servo systems and low-voltage frequency converters has improved, ranking first in several categories [12][12] Strategic Initiatives - The company is advancing its strategic initiatives in internationalization, digitalization, and energy management, while also investing in humanoid robots and AI technologies [12][12] - The company plans to launch components for humanoid robots in the market in 2025, leveraging its understanding of industrial scenarios to develop intelligent solutions [12][12]

Group 1: Company Performance and Market Outlook - In April 2025, the company observed some impact from tariffs but deemed it minor, with further observation needed for May and June [1] - The company's Q1 2025 performance was driven by strong domestic GDP growth, consumer stimulus policies, and a rapid recovery in the lithium battery industry [1] - The 2024 gross margin for the general automation business is expected to decline by approximately 2 percentage points due to product structure changes [2] - The 2025 target for the general automation business is set between 10% to 30% [2] Group 2: Product Strategy and Development - The company is focusing on high-efficiency motors, large-load six-axis robots, and electromagnetic valves as part of its new product strategy [2] - The company aims to enhance its capabilities in digitalization and large PLCs to support the process industry [3] - The IFA industrial software platform is highlighted as a significant development, integrating IT and OT [10] Group 3: Market Expansion and Competition - The company plans to expand its presence in the process industry, expecting growth to exceed that of the general automation sector [4] - To compete with foreign brands, the company emphasizes high internal operational efficiency and customized solutions for specific industries [5] - The company is targeting both developed markets (Europe, USA) and emerging markets (Korea, Vietnam, India) for international expansion [9] Group 4: Future Investments and Innovations - The company views humanoid robots as a long-term investment opportunity, with a market realization expected in three years [12] - Investment in humanoid robotics will focus on core components and customized solutions based on client needs [13] - The Nanjing production base has been launched with a planned capacity of 400,000 units of industrial robots and precision machinery [14] Group 5: Financial Performance and Cash Flow - The company set a profit target for 2025 between 5% to 25%, considering external uncertainties [14] - Positive cash flow in 2024 and Q1 2025 is attributed to effective bill collection strategies [14]

Key Points - In Q1 2025, the company reported revenue of 9 billion yuan, a year-on-year increase of 38%, and a net profit attributable to shareholders of 1.3 billion yuan, up 63% year-on-year [1] - For the full year 2024, the company achieved revenue of 37 billion yuan, a 22% increase year-on-year, but net profit attributable to shareholders decreased by 10% to 4.3 billion yuan [1] Segment Analysis - General Automation: Revenue reached 15.2 billion yuan in 2024, a 1% increase year-on-year, with specific product revenues of 5.6 billion yuan for general servo, 5.2 billion yuan for general frequency converters, 1.3 billion yuan for PLC&HMI, and 1.1 billion yuan for industrial robots [2] - New Energy Vehicles: Revenue was 16 billion yuan, a significant increase of 70% year-on-year, driven by the growth of the new energy vehicle industry and increasing penetration rates [2] - Smart Elevators: Revenue declined to 4.9 billion yuan, a 7% decrease year-on-year, with the domestic elevator production dropping by 8% [3] - Rail Transit: Revenue increased to 560 million yuan, a 2% growth year-on-year [3] Future Focus Areas - The company is prioritizing internationalization, digitalization, energy management, AI, and humanoid robots, with overseas revenue reaching 2 billion yuan in 2024, a 17% increase [3] - Progress in humanoid robots includes the development of high-power drivers and high-performance joint components, as well as establishing connections with machine manufacturers and industrial clients [3] Profit Forecast and Valuation - Short-term outlook suggests a recovery in the industrial control cycle and steady profit contribution from the new energy vehicle business [3] - Long-term projections estimate revenues of 45.2 billion yuan, 54.7 billion yuan, and 65.7 billion yuan for 2025, 2026, and 2027 respectively, with net profits of 4.9 billion yuan, 5.9 billion yuan, and 7.1 billion yuan, reflecting year-on-year growth rates of 14%, 19%, and 20% [3]