Investment Highlights - The SW auto parts index increased by 1.65% this week, ranking 2nd in the SW auto sector, with a year-to-date increase of 5.07% [3][11] - The latest trading day shows SW auto parts PE (TTM) at the 84.66% historical percentile and PB (LF) at the 79.21% historical percentile [11][33] - The Wande robot index rose by 1.81% this week, with a year-to-date increase of 5.62%, outperforming the SW auto parts index by 0.16% [3][11] Core Coverage Changes - Double Ring Transmission increased its wholly-owned subsidiary, Huan Yan Transmission, by RMB 100 million [4][11] - Fuda Co., Ltd. completed the issuance of convertible bonds, with a scale of RMB 470 million [4][11] Weekly Performance of Core Coverage - Notable weekly gains include: - Xinquan Co., Ltd. +16.24% - Hengshuai Co., Ltd. +11.36% - Daimai Co., Ltd. +8.76% - Yatai Co., Ltd. +8.12% - Fuda Co., Ltd. +6.99% [5][11] Major Events This Week - Fulian Precision plans to issue RMB 3.175 billion in stocks to CATL, which will fully subscribe in cash, becoming a related shareholder with over 5% stake [6][11] - Wuzhou Xinchun signed a strategic cooperation agreement with Lixing Co., Ltd. [6][11] Investment Recommendations - For auto parts, focus on structural opportunities by selecting product-oriented companies and those entering high-value sectors to increase ASP, as well as potential leaders prioritizing capacity in Europe, North America, and Southeast Asia [8][11] - For robotics, look for certainty opportunities with the Optimus V3 expected to launch in Q1 2026, and monitor order timelines and application implementations from domestic companies like Xiaopeng, Yuzhu, and Zhiyuan [8][11] - Recommended stocks based on EPS include: Fuyao Glass, Xingyu Co., Ltd., Minshi Group, Junsheng Electronics, and Xingyuan Zhuomei, with a focus on Xinquan Co., Ltd. [8][11] - Recommended stocks based on PE include: Top Group, Junsheng Electronics, Double Ring Transmission, Minshi Group, Yinlun Co., Ltd., and Feilong Co., Ltd., with a focus on Yapu Co., Ltd. and Daimai Co., Ltd. [8][11]

Core Viewpoint - The company is expanding its operations into the robotics industry, specifically in the automotive precision manufacturing sector, by integrating key hardware components for intelligent electric joints [1] Company Developments - The company has made strategic investments in the robotics sector, focusing on the integration of reducers, intelligent control, and motor technology [1] - The company is developing two platforms for electric joint products: harmonic reducers and planetary reducers [1] - The production line for intelligent joints has been launched and is now delivering products to customers [1]

Group 1 - The company has made significant advancements in the humanoid robot sector, particularly in the production of key hardware components such as intelligent electric joints [2] - The company is integrating technologies related to reducers, intelligent control, and motors to enhance its product offerings in the robotics industry [2] - The production line for intelligent joints has been launched and is currently delivering products to customers [2]