Core Viewpoint - The recent surge in Hengda's stock price, which has increased over 100% in the last five trading days and over 171% since April 9, is primarily driven by the announcement of the acquisition of SMS's high-precision CNC grinding business for €8.5 million (approximately ¥69.36 million) [1][3]. Group 1: Acquisition Details - Hengda announced on May 10 its intention to acquire the high-precision CNC grinding business from the German company SMS, along with related assets, specific contractual rights and obligations, and personnel [3]. - SMS, founded in 1995, initially focused on the CNC retrofitting of mechanical thread grinding machines and shifted its focus to the research and manufacturing of CNC thread grinding machines in 2006 [5]. - The acquisition was competitive, with Hengda emerging victorious among over ten international companies after three rounds of bidding [7]. Group 2: Strategic Importance - The acquisition aims to enrich Hengda's product matrix in intelligent CNC equipment and significantly enhance the overall technical level of the company's industrial mother machines [10]. - Hengda has been actively promoting the development of rolling function components, including ball screw assemblies and planetary roller screw assemblies, which are crucial in high-tech fields such as humanoid robots and automotive applications [9]. Group 3: Future Plans - SMS plans to collaborate with Hengda to advance localization efforts in China, including sending procurement lists and technical documents to facilitate the integration of the Chinese supply chain [11]. - Hengda is set to establish a dedicated team to work with SMS on local production planning, including testing and trial production of domestically manufactured models [11]. - Projections indicate that Hengda's revenue will reach ¥700 million and ¥754 million in 2026 and 2027, respectively, with a year-on-year growth of 10% and 8% [11].

Core Insights - A German company specializing in high-precision CNC thread grinding machines has become a hot commodity due to its relevance in the humanoid robot industry, leading to a competitive bidding process involving over ten global firms [1][5] - The winning bid was made by Heng Er Da, which aims to expand its product offerings into high-precision grinding machines and become a key player in the embodied intelligent robotics sector [1][6] Company Overview - SMS Maschinenbau GmbH, established in 1995, has evolved from a machine tool modification company to a respected global supplier of innovative profile and thread grinding machines [2] - SMS's thread grinding machines have an average price of around €600,000, with some products exceeding €1 million, indicating a high-value market with few competitors [3] Market Dynamics - The demand for thread grinding machines has surged due to the growth of the embodied intelligent robotics industry, where ball screws and planetary roller screws are critical for enhancing transmission efficiency and precision [3][4] - The production of these high-precision machines is capital and technology-intensive, with significant reliance on foreign imports, creating a high entry barrier for domestic companies [4] Acquisition Details - Heng Er Da announced its acquisition of SMS for €8.5 million, a valuation aligned with SMS's net assets, following a competitive bidding process [5][6] - Despite not having the highest bid, Heng Er Da was chosen for its compatibility with SMS's long-term development goals [6] Strategic Integration - Heng Er Da plans to restore SMS's operational liquidity and efficiency, with an initial investment of €5 million to address cash flow issues [10] - The strategy includes leveraging "European technology, Chinese manufacturing, and global markets" to enhance SMS's production capabilities and expand its market reach [8][10] Future Outlook - The integration aims to enhance Heng Er Da's product matrix in intelligent CNC equipment and accelerate the localization of high-precision thread grinding machine production in China [11] - Analysts believe this acquisition will strengthen Heng Er Da's competitive position in the intelligent CNC equipment and rolling functional components sectors [11]