Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company's performance in Q3 2025 exceeded market expectations, with revenue growth of 23% year-on-year and net profit growth of 48% [8] - The recovery trend in the industrial control downstream is clear, with the company increasing its market share through marketing initiatives [8] - The robotics business is advancing rapidly, with three main entities focusing on different product solutions [8] - Overall expense control is good, and operating cash flow has significantly improved [8] - The company forecasts a net profit of 2.8 billion, 3.7 billion, and 4.8 billion for 2025, 2026, and 2027 respectively, with corresponding P/E ratios of 49x, 37x, and 29x [8] Financial Performance Summary - Total revenue for 2023 is projected at 1,415 million, with a year-on-year growth of 5.79% [1] - The net profit attributable to the parent company for 2023 is estimated at 138.57 million, reflecting a year-on-year decline of 37.10% [1] - The latest diluted EPS for 2023 is 0.44 yuan per share [1] - The company expects total revenue to reach 2,071 million in 2025, with a year-on-year growth of 30.74% [1] - The net profit attributable to the parent company is projected to be 281.52 million in 2025, with a year-on-year growth of 40.43% [1] - The latest diluted EPS for 2025 is expected to be 0.90 yuan per share [1]

Market Trends and Growth Potential - The automation industry is experiencing a shift towards intelligent, high-precision, green, and compact solutions, with a projected market size of nearly ¥3,000 billion in 2024 for the overall automation market in China, and over ¥1,000 billion for the OEM automation market [3] - The humanoid robot market is expected to grow from ¥27.6 billion in 2024 to ¥104.71 billion by 2026, potentially reaching ¥3,000 billion by 2035 [3] - The demand for high-performance equipment is increasing due to the upgrade of intelligent manufacturing automation, creating significant market opportunities [3] Business Growth Drivers - The company's growth in industrial automation relies on several key drivers, including market share gains in servo systems and PLC products, and a focus on high-quality growth through strategic initiatives [4] - Specific measures include capturing import market share, expanding into mid-to-low-end markets, deepening strategic industry engagement, and enhancing channel network expansion [4] - The company aims to increase the proportion of high-margin products and improve penetration in intelligent manufacturing and robotics applications [4] Robotics Industry Positioning - The company positions itself as a core component and solution provider in the embodied robotics sector, focusing on key technologies for humanoid robots [6] - Business layout includes three subsidiaries targeting high-density motors, hollow cup motors, and collaborative development with major clients [7] - The company has established partnerships with hundreds of domestic and international robotics firms, enhancing its market presence [8] Technological Advancements and Product Development - The company is leveraging its technological expertise to develop core components for humanoid robots, collaborating with academic institutions to advance joint modules and high-precision servo drives [9] - Recent product releases, such as the DH2015 dexterous hand solution, feature high degrees of freedom, robust communication capabilities, and significant load-bearing capacity, positioning the company as a leader in the market [11] - The company plans to initiate trial production of the DH2015 in Q3 2025, aiming to meet diverse application needs across industrial automation and consumer markets [11] Investment Risks and Disclosure - The robotics industry faces long development cycles and significant investment risks, particularly in technology R&D and market expansion [12] - The company adheres to strict information disclosure regulations to ensure transparency and accuracy in its communications with investors [12]