Core Insights - Zhu Cheng Technology has developed a product line for robot connectors, primarily used in robot control systems, grounding, and EMC protection [2] - The products have been applied to clients such as KUKA and UBTECH [2] - The company has established a new subsidiary, "Yueqing Zhu Cheng BiXuan Robot Technology Co., Ltd.," to promote collaborative development within the robotics industry chain [2]

Group 1 - The company has developed a product line for robot connectors, primarily used for robot control system connections, grounding, and EMC protection [1] - The products have been applied to clients such as KUKA and UBTECH [1] - The company has established a new subsidiary, "Yueqing Zhucheng UBTECH Robot Technology Co., Ltd.," to promote collaborative development within the robotics industry chain [1]

Group 1 - The company has established a product line for robot connectors, primarily used for robot control systems, grounding, and EMC protection [1] - The products have been applied to clients such as KUKA and UBTECH [1] - A new subsidiary, "Yueqing Zhucheng UBTECH Robot Technology Co., Ltd.," has been set up to promote collaborative development within the robot industry chain [1]

Investment Rating - The report maintains an investment rating of "Buy" for the company with a target price of RMB 90.95 [1][6]. Core Insights - The company is expected to enter a harvest phase for its new AI product layout, with significant growth in its electric vehicle (EV) business and successful penetration into overseas markets, particularly in Europe [6][8]. - The third quarter of 2025 saw a revenue of RMB 796 million, representing a year-over-year increase of 26.15% and a quarter-over-quarter increase of 4.32% [6][7]. - The company has strategically positioned itself in the AI data center connector and robotics connector markets, with a complete product lineup that is anticipated to attract both domestic and international clients [6][8]. Financial Performance - For the first three quarters of 2025, the company achieved a total revenue of RMB 2.321 billion, a year-over-year increase of 46.04%, and a net profit attributable to the parent company of RMB 233 million, up 119.89% year-over-year [6][9]. - The company’s revenue projections for 2025-2027 are RMB 3.391 billion, RMB 4.486 billion, and RMB 5.689 billion, respectively, with corresponding net profits of RMB 272.82 million, RMB 343.09 million, and RMB 461.29 million [5][9]. - The report highlights a projected EPS of RMB 1.33 for 2025, with a PE ratio of 59.93 [5][9]. Market Position and Strategy - The company is focusing on becoming a platform enterprise for connectors, with a strong emphasis on the EV sector and emerging markets [8][9]. - The report notes that the company has secured orders for EV connectors from European automotive clients, indicating a stable and long-term revenue stream [8][9]. - The company’s new product lines in AI and data center communication are expected to enter a harvest phase, with existing orders from domestic cloud service providers and ongoing efforts to engage with international clients [8][9].

Investment Rating - The report maintains a "Buy" rating for the company [6] Core Views - The company has a diversified customer base, including major clients such as SAIC Volkswagen, Daimler, Audi, and others, which supports its leading position in the domestic wiring harness market [2] - The company is expanding its overseas market presence, particularly in Europe, by enhancing its management team and optimizing supply chain management [2] - The demand for high-voltage wiring harnesses is increasing due to the growth of electric vehicles and autonomous driving, positioning the company to benefit from industry expansion and domestic substitution trends [3] - The company has developed a full range of high-voltage connectors and is actively involved in the robotics sector, providing wiring harnesses and connectors for AI companies and robotic systems [3] Financial Summary - For the first three quarters of 2025, the company reported revenue of 5.84 billion yuan, a year-on-year increase of 6%, and a net profit of 420 million yuan, a year-on-year decrease of 3% [1] - The gross profit margin for the first three quarters of 2025 was 15.6%, down 1.7 percentage points year-on-year, while the net profit margin was 7.3%, down 0.6 percentage points year-on-year [1] - The company expects net profits for 2025, 2026, and 2027 to be 670 million yuan, 800 million yuan, and 930 million yuan, respectively, with corresponding P/E ratios of 24, 20, and 17 times [3]

Group 1: Company Overview and Operations - The company specializes in household appliance connectors with a development cycle of approximately 45 days and a customer certification period ranging from 1 to 6 months [2] - The automotive product development cycle is about 40 to 50 days, with a typical certification period of six months [2] - The company is enhancing strategic cooperation with core customers to meet their demands for product intelligence and customization [3] Group 2: Robotics and New Ventures - The company has established a subsidiary, Foshan Zhucheng Intelligent Technology Co., Ltd., focusing on connectors for industrial robots [3] - A strategic joint venture agreement has been signed with UBTECH to develop components for intelligent service robots and humanoid robots [3] - The company has received sample orders from UBTECH for humanoid robots and has obtained supplier codes from KUKA Robotics (Guangdong) Co., Ltd. for small batch supply [3] Group 3: Revenue Streams and Capacity Utilization - Other main revenue sources include connectors for new energy photovoltaic storage, smart terminals, and robotics [3] - The company is continuously updating production equipment and expanding production lines to enhance capacity and support business growth [3] Group 4: Expansion and Construction Progress - The company has acquired land in Leqing, Foshan, Qingdao, and Wuhan for new production bases, with all projects progressing as planned [3] - The company will disclose specific progress in accordance with regulations and advises stakeholders to be aware of related risks [3] Group 5: Investor Relations Activity - The investor relations activity included a management exchange and a tour of the company’s exhibition hall and factory [2] - The event did not involve any undisclosed significant information [3]

Company and Industry Summary Company:珠城科技 (Zhu Cheng Technology, Stock Code: 301280) Key Financial Performance - **2024 Revenue**: 16.0 billion yuan, up 31.8% year-on-year [1] - **Q1 2025 Revenue**: 4.5 billion yuan, up 24.5% year-on-year [1] - **Net Profit for 2024**: 1.86 billion yuan, up 26.4% year-on-year [1] - **Q1 2025 Net Profit**: 0.54 billion yuan, up 12.5% year-on-year [1] - **Deducted Non-Recurring Net Profit for 2024**: 1.75 billion yuan, up 25.8% year-on-year [1] - **Q1 2025 Deducted Non-Recurring Net Profit**: 0.51 billion yuan, up 8.8% year-on-year [1] Profitability Metrics - **2024 Gross Margin**: 24.97%, down 0.73 percentage points year-on-year [2] - **2024 Net Margin**: 12.30%, down 0.92 percentage points year-on-year [2] - **Q1 2025 Gross Margin**: 24.45%, down 2.04 percentage points year-on-year and down 1.36 percentage points quarter-on-quarter [2] - **Q1 2025 Net Margin**: 12.91%, down 1.31 percentage points year-on-year and up 1.40 percentage points quarter-on-quarter [2] Growth Drivers - Growth primarily driven by the increase in home appliance connectors [1] - Future benefits expected from the rise in domestic production rates of home appliance connectors, as well as the expansion in robot and automotive connector markets [1] Strategic Initiatives - Strengthening the automotive and robot connector segments to create a second growth curve [2] - Acquired 20% stake in Wuxi Deweijia to accelerate entry into the automotive connector market [2] - Collaborations established with major players: - Partnership with UBTECH for product samples [2] - Supplier code obtained from KUKA Robotics for small batch supply [2] - Formation of a specialized team to deepen existing customer collaborations and enhance customized product development [2] Future Projections - Projected EPS for 2025-2027: 2.52 yuan, 3.22 yuan, and 4.36 yuan respectively [2] - Target price raised to 75 yuan based on a 30x PE ratio for 2025 [2]