Core Conclusions - The report covers Hengshuai Co., Ltd. (300969.SZ), a key player in automotive micro-motors, which is expected to enter the humanoid robot motor sector. The company is benefiting from the electrification and intelligence of vehicles, leading to steady growth in its automotive business. The strong technical capabilities of the company suggest significant performance increases from humanoid robot motors. Projected net profits for 2025-2027 are estimated at 239 million, 294 million, and 389 million yuan, representing year-on-year growth of 11.8%, 23.0%, and 32.4%, respectively, with corresponding PE valuations of 37.2, 30.2, and 22.8 times, leading to a "Buy" rating [1][4][5]. Automotive Sector Insights - Hengshuai Co., Ltd. is a leading enterprise in automotive micro-motors and cleaning systems, with a global expansion strategy. In 2024, the company is expected to achieve revenue of 960 million yuan, a year-on-year increase of 4.21%, with a CAGR of 29.6% from 2020 to 2024. The projected net profit for 2024 is 210 million yuan, reflecting a year-on-year growth of 5.75% and a CAGR of 34.2% from 2020 to 2024. The gross margin is expected to be 34.79%, a decline of 1.5 percentage points, while the net margin is projected at 22.21%, an increase of 0.3 percentage points [4][5]. - The demand for micro-motors in the automotive sector is expected to grow due to the acceleration of vehicle electrification. The average usage of micro-motors in mid-to-high-end electric vehicles is significantly higher than in traditional fuel vehicles. According to QYResearch, the global automotive micro-motor market is projected to reach 20.4 billion USD by 2031 [4][5]. - The trend towards automotive intelligence is evident, with the ADAS cleaning system making significant progress. Canalys predicts that by 2025, the penetration rate of L2 and above vehicles in the Chinese market will reach 62%, leading to an increase in sensor usage and cleaning points, thus providing more growth opportunities for automotive cleaning systems [5]. Humanoid Robot Motor Market Potential - The company is strategically positioning itself in the humanoid robot motor market, which is expected to reach a market size of 58.3 billion yuan by 2027. The harmonic magnetic field motor developed by the company is in the industrialization phase, indicating potential entry into the humanoid robot sector. Additionally, the company is extending its reach upstream in the supply chain by investing in magnetic materials, enhancing its technological depth and cost advantages [5].

Investment Rating - The report assigns a "Buy" rating for the company [4]. Core Insights - Hengshuai Co., Ltd. is a leading enterprise in automotive micro-motors and cleaning systems, with steady global expansion. The company primarily focuses on automotive motor technology and fluid technology. In 2024, it is projected to achieve revenue of 960 million yuan, a year-on-year growth of 4.21%, with a CAGR of 29.6% from 2020 to 2024. The net profit attributable to shareholders is expected to reach 210 million yuan, a year-on-year increase of 5.75%, with a CAGR of 34.2% during the same period [1][4][31]. Summary by Sections Automotive Micro-Motor and Cleaning System Leadership - Hengshuai Co., Ltd. has been deeply engaged in the automotive cleaning system and micro-motor industry since its establishment in 2001, continuously enhancing its product matrix and expanding its global footprint [21][22]. - The company has established subsidiaries in various locations since 2019, actively expanding its domestic and international customer base [21][31]. Growth in Automotive Electrification - The trend of automotive electrification is evident, driving rapid growth in the demand for automotive micro-motors. The average usage of micro-motors in mid-to-high-end electric vehicles is significantly higher than in traditional fuel vehicles [50][53]. - The global automotive micro-motor market is expected to reach 20.4 billion USD by 2031, with a CAGR of 3.1% from 2025 to 2031 [60][61]. Advancements in Automotive Intelligence - The report highlights the increasing penetration of intelligent driving technologies, with the demand for ADAS (Advanced Driver Assistance Systems) cleaning systems expected to grow as the number of sensors in vehicles increases [2][71]. - The company has made significant progress in developing ADAS active perception cleaning systems, having secured batch business designations from various clients [79]. Strategic Expansion into Humanoid Robot Motors - Hengshuai Co., Ltd. is strategically positioning itself in the humanoid robot motor market, which is projected to have a market space of 58.3 billion yuan by 2027. The company’s harmonic magnetic field motors are entering the industrial expansion phase, indicating potential growth in this sector [2][80]. Financial Projections - The company is expected to achieve net profits of 239 million, 294 million, and 389 million yuan from 2025 to 2027, representing year-on-year growth rates of 11.8%, 23.0%, and 32.4%, respectively [2][15]. - The projected revenue for the same period is expected to be 1.08 billion, 1.32 billion, and 1.71 billion yuan, with corresponding growth rates of 12.4%, 22.1%, and 29.3% [2][15]. Valuation - The report notes that Hengshuai Co., Ltd. has a lower PE valuation compared to comparable companies in the automotive micro-motor sector, with projected PE ratios of 37.2, 30.2, and 22.8 for 2025 to 2027 [15].

Group 1 - The core viewpoint of the news is the performance and characteristics of Hengshuai Convertible Bonds, which are currently trading at 221.0 yuan per share with a conversion premium rate of 112.02% [1] - Hengshuai Convertible Bonds have a credit rating of "A+" and a maturity period of 6 years, with interest rates increasing from 0.20% in the first year to 2.50% in the sixth year [1] - The conversion price for Hengshuai Convertible Bonds is set at 62.55 yuan, with the conversion start date on December 5, 2025 [1] Group 2 - Hengshuai Co., Ltd. has focused on automotive micro-motors and related products for many years, adapting to the rapid development of the global automotive industry [2] - The company has invested in innovative design and advanced manufacturing processes, including self-made molds and automated assembly lines, to enhance product development and quality control [2] - For the first quarter of 2025, Hengshuai reported a revenue of 202.8 million yuan, a year-on-year decrease of 16.04%, and a net profit of 41.8 million yuan, down 35.48% year-on-year [2] - As of June 2025, Hengshuai's shareholder concentration is high, with 8,995 shareholders and an average holding of 3,375 shares per person, amounting to an average investment of 189,700 yuan [2]

Group 1 - The event titled "Capital Market Servicing High-Quality Development of Private Economy in Ningbo" was held to promote the implementation of the new "National Nine Articles" and to enhance the capital market's role in supporting private economic development [1] - 11 industry institutions and 8 representatives from private enterprises participated, sharing experiences on direct financing, corporate governance, and risk management [1][2] - Yongxing Securities, as the only local securities firm in Ningbo, has completed 19 investment banking projects since its establishment in 2020, with a total financing scale of 14.362 billion yuan [1] Group 2 - Representatives from various securities firms expressed their commitment to support Ningbo's private economy and proposed strategies for enhancing service delivery [2] - Companies like Hengshuai Co., Ltd. shared their experiences with capital market tools, including the successful issuance of convertible bonds, focusing on projects in automotive micro-motors and cleaning systems [3] - Legal experts emphasized the importance of providing high-quality legal services to private enterprises, highlighting the need for compliance, governance, and digital transformation support [4]

Core Viewpoint - Hengshuai Co., Ltd. has successfully issued convertible bonds totaling approximately 328 million yuan, aimed at expanding production capacity and enhancing global competitiveness through the establishment of a new automotive parts production base in Thailand [1][2]. Group 1: Convertible Bond Issuance - The total amount of the convertible bonds issued by Hengshuai is approximately 328 million yuan, which will be used for various projects including a new automotive parts production base in Thailand and the expansion of R&D centers [1]. - The convertible bonds will be listed on the Shenzhen Stock Exchange starting June 17, with the bond code "123256" [1]. Group 2: Business Expansion and Global Strategy - The issuance of convertible bonds is expected to accelerate Hengshuai's business development, allowing the company to meet the growing market demand and enhance its global competitiveness [1]. - The company plans to allocate over half of the raised funds for overseas production capacity, specifically investing 195 million yuan in the new automotive parts production base in Thailand [2]. - The Thailand project aims to produce an additional 3 million door motors, 1.3 million charging door actuators, 1.3 million invisible door handle actuators, and 3 million washing pumps upon reaching full production [2]. Group 3: International Market Positioning - Thailand is viewed as a strategic location for Hengshuai's overseas production layout, leveraging its favorable business environment and policies to mitigate international trade friction [2]. - The company has also established a factory in the United States, which focuses on supporting cleaning system products and developing new products, contributing to a growing overseas production network [2]. - The collaboration between the factories in Thailand and the United States is expected to enhance Hengshuai's supply capabilities and market share in international markets [2].

Core Viewpoint - The company, Ningbo Hengshuai Co., Ltd., has adjusted the investment amount for its fundraising projects due to the actual net amount raised being lower than initially disclosed in the convertible bond offering document, ensuring efficient use of funds and alignment with its development strategy [1][2][5]. Fundraising Overview - The company issued convertible bonds totaling RMB 327.59 million, with a net amount of RMB 322.30 million after deducting issuance costs of RMB 5.29 million [1][2]. - The bonds were issued to unspecified investors, with a maturity of six years and a face value of RMB 100 per bond [1]. Adjustment of Investment Amount - The adjustment in the investment amount for the fundraising projects was necessary due to the actual net amount being less than the amount disclosed in the offering document [2][3]. - The total investment amount for the Thai new automotive parts production base project was adjusted from RMB 453.53 million to RMB 327.59 million, with the final amount being RMB 322.30 million [3]. Impact of Adjustment - The adjustment is deemed a prudent decision based on the actual situation of the fundraising projects, ensuring no adverse effects on the company's normal operations or shareholder interests [4][5]. - The company aims to enhance the efficiency of fund usage and optimize resource allocation, aligning with its strategic goals and benefiting all shareholders [4][5]. Approval Process - The adjustment proposal was approved by the company's board of directors and supervisory board, confirming compliance with relevant regulations and ensuring no change in the intended use of the raised funds [4][5].

Core Viewpoint - The company, Ningbo Hengshuai Co., Ltd., is utilizing its own funds, foreign exchange, and bank acceptance bills to pay for fundraising projects and will replace these with raised funds in an equivalent amount, ensuring compliance with regulatory requirements and enhancing fund utilization efficiency [1][5][8]. Fundraising Overview - The company raised a net amount of RMB 374.9462 million from its initial public offering (IPO) by issuing 20 million shares at a price of RMB 3.86538 million [1]. - The company also raised RMB 322.2995 million through the issuance of convertible bonds, with a total of 3,275,900 bonds issued at a face value of RMB 100 each [2]. Investment Project Details - The total investment for the IPO fundraising projects is RMB 652.23 million, with RMB 374.9462 million allocated from the raised funds [2]. - The adjusted investment amount for the convertible bond projects is RMB 322.2995 million [5]. Payment Methodology - The company plans to use its own funds, foreign exchange, and bank acceptance bills to pay for project costs, which will later be replaced by the raised funds to improve fund utilization efficiency and reduce financial costs [5][6]. - A detailed operational process has been established to track and manage the payments made using these methods [6]. Impact on the Company - The approach of using alternative payment methods is expected to enhance the overall efficiency of fund operations without affecting the normal implementation of fundraising projects [6][8]. - The company has confirmed that this method does not change the intended use of the raised funds or harm shareholder interests [6][8]. Decision-Making Process - The board of directors and the supervisory board have approved the use of alternative payment methods, affirming that it aligns with the company's interests and complies with relevant regulations [7][8]. - The sponsor institution has also reviewed and endorsed the decision, confirming that it adheres to regulatory guidelines [8].

Core Viewpoint - The company intends to increase the use of part of its idle raised funds for cash management to improve fund utilization efficiency while ensuring that it does not affect the construction of fundraising projects or the company's normal operations [1][7][8]. Summary by Sections Fundraising Overview - The company raised a net amount of RMB 374.9462 million from its initial public offering (IPO) by issuing 20 million shares at a price of RMB 3.86538 million [1][2]. - The total investment amount for the fundraising projects was adjusted due to the actual net amount being less than initially disclosed [2][4]. Adjusted Investment Amounts - The adjusted investment amounts for the fundraising projects are as follows: - Annual production of 19.54 million automotive micro-motors and related components: RMB 652.23 million, with RMB 374.9462 million from raised funds [3][5]. - Convertible bonds raised a total of RMB 322.2995 million, with adjustments made to the investment amounts as well [4][5]. Cash Management Plan - The company plans to use up to RMB 200 million of idle raised funds for cash management, increasing the previous limit from RMB 120 million to RMB 320 million [6][7]. - The investment products will include structured deposits, income certificates, principal-protected financial products, and treasury reverse repos [6]. Implementation and Oversight - The management is authorized to sign relevant contracts within the approved limits and duration, with the finance department responsible for implementation [6][7]. - The income generated from cash management will be managed according to regulatory requirements [6][7]. Board and Supervisory Opinions - The board and supervisory committee have approved the cash management plan, confirming it will not affect the fundraising projects or the company's normal operations [7][8]. - The plan aligns with regulatory guidelines and is in the best interest of the company and its shareholders [8]. Sponsor's Verification - The sponsor has verified that the cash management plan has undergone necessary approval processes and does not involve changing the purpose of the raised funds [8][9].