Core Viewpoint - The rapid development of artificial intelligence, 5G, big data, and cloud computing in China is driving the demand for remote and fully automated industrial manufacturing, positioning Bozhong Precision (688097) to expand its business through the acquisition of Shanghai Wodian Industrial Automation Co., Ltd. [1] Group 1: Acquisition Details - Bozhong Precision plans to invest 420 million yuan to acquire 70% of Shanghai Wodian, aiming to create a multi-driver business model in "3C + new energy + automotive" sectors [1] - The acquisition will help Bozhong Precision enhance its capabilities in automotive manufacturing automation, filling gaps in its existing business [2] Group 2: Shanghai Wodian's Strengths - Shanghai Wodian specializes in providing comprehensive industrial automation solutions, with a focus on the automotive sector, and has established partnerships with major automotive brands [2] - The company holds 67 patents, including 16 invention patents, showcasing its technological expertise [2] Group 3: Strategic Benefits - The integration of Shanghai Wodian's technology in smart factory systems and logistics can synergize with Bozhong Precision's precision manufacturing capabilities in the 3C sector [3] - Shanghai Wodian is expanding into high-margin overseas markets, with a significant portion of its orders coming from Europe and the U.S. [3] Group 4: Performance Commitments - The acquisition includes performance commitments, with Shanghai Wodian expected to achieve a net profit of no less than 185 million yuan during the performance commitment period from 2025 to 2027 [3] Group 5: Industry Positioning - Bozhong Precision has diversified its business since 2017, expanding into sectors such as semiconductors, automotive electronics, and new energy, enhancing its competitive edge [4] - The global industrial automation market is projected to grow from $192 billion in 2024 to $402 billion by 2033, with a compound annual growth rate of 9.1% [6]

Investment Rating - The report maintains a "Buy" rating for the company [3][5]. Core Views - The company is expected to achieve stable revenue growth in 2024, with projected revenue of 4.95 billion yuan, a year-on-year increase of 2.36%, and a net profit of 398 million yuan, also up 2.05% year-on-year [3][4]. - The company is focusing on multiple downstream sectors including consumer electronics, new energy, and robotics, which are expected to synergistically develop [3][4]. - The company has made significant breakthroughs in the new energy sector, particularly in lithium battery specialized machines and smart charging and swapping station equipment [3]. - The company is strategically expanding its customer base in the consumer electronics sector, targeting major clients such as Huawei, Samsung, and Xiaomi [2][3]. Financial Performance Summary - In Q4 2024, the company reported a revenue of 1.68 billion yuan, a year-on-year increase of 5.32%, but a net profit of 145 million yuan, which is a decrease of 10.17% year-on-year [3]. - The gross profit margin for 2024 is projected to be 34.38%, an increase of 0.59 percentage points year-on-year, while the net profit margin is expected to be 8.04%, a slight decrease of 0.03 percentage points [3][4]. - For Q1 2025, the company is expected to report a revenue of 737 million yuan, a year-on-year decrease of 0.8%, and a net loss of 31 million yuan [2]. Financial Forecast - The company is projected to achieve net profits of 517 million yuan, 690 million yuan, and 793 million yuan for the years 2025, 2026, and 2027 respectively [3][4]. - The report indicates a significant growth rate in revenue for 2025 at 29.80%, followed by 23.66% in 2026 and 14.08% in 2027 [4][5].

Core Viewpoint - The article emphasizes the growth potential of the company in the 3C automation equipment sector, driven by advancements in consumer electronics and the integration of flexible automation solutions with MR devices [3]. Group 1: 3C Automation Equipment - The company is a leading manufacturer in the 3C automation equipment field, with the capability to cover the FATP segment, having successfully delivered over 40 flexible modular production lines in 2023 [3]. - As consumer electronics evolve with AI advancements, the company is positioned to benefit from product innovation and increased automation rates, anticipating expansion into more process segments and other consumer electronic product categories [3]. Group 2: Diversified Business Layout - In the renewable energy sector, the company offers lithium battery specialized equipment, smart charging and swapping station equipment, and automotive automation equipment, with significant orders from major clients like CATL and others [4]. - The semiconductor sector is strategically targeted, with products including die bonding machines and AOI inspection equipment, having secured bulk orders for 400G/800G die bonding machines [4]. - The core components business is managed by a subsidiary, focusing on self-supply and external sales, with applications extending across various industries including 3C, renewable energy, and healthcare [4]. - The low-altitude economy segment, also managed by a subsidiary, is projected to reach a market size of trillions in China, indicating significant growth potential [4].