Core Viewpoint - The company is a leading global supplier of automotive micro motors and systems, with a complete global manufacturing system and stable Tier 1 customer resources. It is rated "Buy" for investment, with projected revenue and net profit growth from 2026 to 2028, indicating significant valuation attractiveness compared to peers [1] Group 1: Automotive Motor Business - The company is transitioning from fuel vehicles to electric vehicles, with the average number of motors in new energy vehicles being approximately 17 times that of fuel vehicles. The estimated value per vehicle for fuel vehicles is $217.6, while for new energy vehicles it is $326.5 [2] - Global production of new energy vehicles is expected to grow from 24.9 million in 2024 to 40.2 million in 2028 (CAGR=12.7%), with the company's market share increasing from 7.2% to 7.4%, leading to revenue growth from $600 million to $970 million [2] - Traditional fuel vehicle production is projected to decline from 64.7 million to 55.2 million (CAGR=-3.9%), with corresponding revenue decreasing from $2.6 billion to $2.0 billion [2] Group 2: Humanoid Robot Business - The company aims to become a core supplier for domestic and international humanoid robot manufacturers, leveraging its mature customer system and global manufacturing layout. Approximately two-thirds of its production capacity is overseas, enhancing its global manufacturing and delivery advantages [2] - The estimated value per humanoid robot is approximately ¥21,389, with the BOM value accounting for 12.25% [2] Group 3: AI Data Center Liquid Cooling Pump - The demand for cooling efficiency in AI data centers is driving the growth of liquid cooling solutions. The market for AI servers using liquid cooling systems is expected to grow from $20 billion in 2024 to $728.9 billion by 2030 (CAGR=82.1%) [3] - The global liquid cooling pump market is projected to increase from $1.4 billion in 2024 to $51 billion by 2030. The company has a product matrix covering 18W to 1800W liquid cooling pumps [3] - In optimistic, neutral, and conservative scenarios, the company's revenue from liquid cooling pumps could reach $357 million, $255 million, and $153 million by 2030, respectively [3] Group 4: Catalysts for Stock Performance - Key catalysts include the mass production validation of humanoid robots, increased sales of liquid cooling pump products, higher-than-expected penetration rates of new energy vehicles, improved gross margin structure through cost control and capacity optimization, and exceeding expectations in new orders and product launches [4]

Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [1]. Core Insights - The company is a global leader in automotive micro-motors and systems, with a complete global manufacturing system and stable Tier 1 customer resources. Revenue projections for 2026E-2028E are $3.816 billion, $4.100 billion, and $4.634 billion, respectively, with corresponding net profits of $271 million, $297 million, and $339 million. The company’s valuation shows significant attractiveness compared to A-share and global peers [7]. Summary by Sections 1. Global Leading Micro-Motor Manufacturer - The company has evolved through three stages since its establishment in 1959, transitioning from toy micro-motors to automotive electric motors and expanding into various fields through acquisitions [18]. 2. Main Business: APG Growth Amid Electrification - The company’s automotive product group (APG) is expected to see volume and price increases due to the transition from fuel vehicles to electric vehicles. The average number of motors in electric vehicles is approximately 17 times that of fuel vehicles, leading to a significant increase in single-vehicle value [8][51]. 3. Key Assumptions - The company’s APG business is projected to benefit from the growth in electric vehicle production, with global electric vehicle output expected to rise from 24.9 million units in 2024 to 40.2 million units in 2028, reflecting a CAGR of 12.7% [8]. - The humanoid robot business is anticipated to become a core supplier for domestic and international manufacturers, leveraging its global manufacturing layout and system-level motor technology [8]. - The AI data center liquid cooling pump business is expected to benefit from the growing demand for cooling efficiency, with the market projected to grow from $2 billion in 2024 to $72.89 billion by 2030 [8]. 4. Financial Forecast and Valuation - The company’s projected revenues and net profits for 2026E-2028E are $3.816 billion, $4.100 billion, and $4.634 billion, and $271 million, $297 million, and $339 million, respectively. The corresponding P/E ratios are 15.2, 13.9, and 12.2 [10][12]. 5. Market Perception - Contrary to common perceptions that the company’s growth is constrained by the automotive cycle, the report highlights the company’s capabilities in high-precision motors and fluid control systems, which provide a strong foundation for growth in emerging sectors [11]. 6. Revenue Structure and Growth - The company’s revenue structure is increasingly concentrated in the automotive sector, with APG expected to account for 84% of total revenue by 2025. The company’s global customer base includes major automotive manufacturers and high-end brands across various industries [20][33]. 7. Electric Vehicle Market Dynamics - The report indicates that the global automotive industry is transitioning from quantity growth to structural optimization, with electric vehicles becoming the primary source of growth. The penetration rate of electric vehicles is expected to rise significantly, driving revenue growth for the company [55][56]. 8. Single Vehicle Value Enhancement - The average single vehicle value for electric vehicles is projected to be significantly higher than that of fuel vehicles, with estimates of $326.5 for electric vehicles compared to $217.6 for fuel vehicles [56].

Group 1 - The global game console accessories market is projected to reach $16.49 billion in 2024 and $34.24 billion by 2031, with a compound annual growth rate (CAGR) of 11.2% from 2025 to 2031 [4] - The flexible tactile sensor market is expected to grow from approximately $1.53 billion in 2022 to $5.32 billion by 2029, with a CAGR of 17.9% [7][28] - The IoT smart terminal market for two-wheeled vehicles is forecasted to reach $19.75 billion by 2031, with a CAGR of 16.3% from 2025 to 2031 [11] Group 2 - The Southeast Asian metal packaging market for food and beverages is anticipated to reach $5.75 billion by 2029, providing significant growth opportunities for companies in the region [13] - The global electric scooter market is projected to reach $2.37 billion in 2024 and $5.685 billion by 2031, with a CAGR of 13.5% from 2025 to 2031 [16] - The automotive micro-motor market is expected to reach $20.4 billion by 2031, driven by the increasing use of micro-motors in high-end electric vehicles [18] Group 3 - The global SiC power module market is estimated to reach $65.71 billion by 2030, with a CAGR of 24.1% from 2024 to 2030 [20] - The edge AI chip market is projected to grow from $3.246 billion in 2024 to $9.342 billion by 2031, with a CAGR of 16.5% [22] - The quartz crystal component market is dominated by the top ten manufacturers, holding a combined market share of 66.4%, with the company ranking ninth globally at 3.08% [24] Group 4 - The global robotic multi-finger dexterous hand market is expected to exceed $5 billion by 2030, with a CAGR of 64.6% from 2024 to 2030 [51] - The global high-pressure cleaning machine market is projected to reach $4.42 billion by 2031, with a CAGR of 4.7% from 2025 to 2031 [53] - The global FMM market is expected to grow from $365 million in 2024 to $952 million by 2031, indicating a shift in industry dynamics [56]

Core Viewpoint - The company reported a decline in revenue and net profit for the first half of 2025, but the Q2 performance showed signs of recovery with a sequential increase in revenue and net profit, indicating potential for future growth despite short-term challenges [3][4][7]. Financial Performance - In H1 2025, the company achieved revenue of 428 million yuan, a year-on-year decrease of 7.46%, and a net profit attributable to shareholders of 85 million yuan, down 26.79% year-on-year [3]. - For Q2 2025, the company reported revenue of 226 million yuan, a year-on-year increase of 1.92% and a sequential increase of 11.19%. The net profit for the same quarter was 43 million yuan, down 15.72% year-on-year but up 2.52% sequentially [3][4]. - The gross margin for Q2 2025 was 31.05%, a decrease of 5.15 percentage points year-on-year and 1.16 percentage points sequentially, primarily due to price reductions from downstream customers [4]. Competitive Advantages - The company possesses core competencies in technology research and development, cost control, customer coverage, product expansion, and capacity layout [5][6]. - It has a leading technological advantage in product development, automated production lines, and a platform strategy that enhances cost efficiency [6]. - The company has established deep partnerships with major automotive manufacturers and international Tier 1 suppliers, enhancing its market position [6]. Profit Forecast and Investment Rating - The profit forecasts for 2025-2027 have been adjusted to 215 million yuan, 264 million yuan, and 326 million yuan, respectively, with corresponding EPS of 1.92 yuan, 2.36 yuan, and 2.91 yuan [7]. - The company is recognized as a leader in the automotive micro-motor industry with significant growth potential and is actively expanding into robotics-related businesses, leading to a maintained "buy" rating [7].

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].