Core Viewpoint - New Times is recognized as a leading domestic robot manufacturer, with an upward turning point in its motion control business, and the acquisition by Haier is expected to accelerate the development of embodied intelligence and humanoid robots beyond expectations [1] Group 1: Market Position and Product Development - The company has a strong market share, ranking second globally in elevator controllers and fourth domestically in SCARA industrial robot shipments [1] - The company is a pioneer in domestic automation product substitution and has a high degree of integration in its offerings [1] - The company broke the foreign monopoly in elevator control early on and became the first domestic manufacturer to achieve integrated robot drive and control [1] Group 2: Future Prospects and Strategic Positioning - Future developments in embodied intelligence and humanoid robots can draw references from companies like Tesla, Xiaomi, and Xpeng [1] - The company possesses foundational capabilities in motion control technology and industrial robot manufacturing, while Haier contributes with its large model capabilities, data collection, and application scenarios [1] - The company aims to establish a complete industrial chain for embodied intelligence and humanoid robots, integrating "big brain + body + application scenarios + sales system" [1] Group 3: Financial Performance and Order Growth - The company is experiencing continuous improvement in gross and net profit margins [1] - There is a consistent increase in semiconductor robot order volumes [1] - The company has upgraded its rating to "Buy" based on these positive indicators [1]

Investment Rating - The investment rating for the company is upgraded to "Buy" [6] Core Views - The company is a leading domestic robotics firm, with an upward turning point in its motion control business. The acquisition by Haier is expected to accelerate the implementation of embodied intelligence and humanoid robots beyond expectations [1][2] Summary by Sections 1. Exceeding Expectations - The market perceives the company's growth and profitability as weak. However, the company is a leader in control technology with strong product iteration capabilities. It ranks second globally in elevator controllers and fourth in domestic SCARA industrial robot shipments. The company has pioneered domestic replacements in automation products and achieved integration in robot drive control [2] - Haier's acquisition is expected to benefit the company as it continues to push for embodied intelligence. Haier has established a robotics division, initiated a 10 billion yuan investment fund for embodied intelligence, formed an innovation alliance, and launched household robots [2][31] - The company plans to launch an embodied intelligent welding solution in September 2025 and an intelligent controller by the end of 2025, with a focus on humanoid robots [3][37] 2. Management and Profitability Improvement - Haier's shareholding and voting rights in the company are expected to increase significantly, potentially raising its stake from 10% to 26.83% and voting rights from 29.24% to 42.47% after a planned capital increase [4][24] - Key management positions are held by members from Haier, which is anticipated to enhance operational efficiency and profitability through Haier's effective management model [5][29] 3. Financial Forecasts and Valuation - The company is projected to achieve net profits of 0.13 billion yuan, 0.84 billion yuan, and 1.90 billion yuan from 2025 to 2027, reflecting a significant turnaround and growth rates of 567% and 128% respectively. The compound annual growth rate (CAGR) for this period is estimated at approximately 290% [11] - The company's price-to-earnings (PE) ratios are expected to be 949, 142, and 62 for the years 2025 to 2027 [11] 4. Revenue and Profit Structure - The company has three main business segments: elevator control, robot control, and general control and drive. In 2024, the revenue from these segments is expected to be 6.6 billion yuan, 15.9 billion yuan, and 8.0 billion yuan respectively [14] - The gross margin for the elevator control segment is relatively high, with improvements noted in the margins for general control and robot segments [22]

Group 1 - The core logic indicates that industrial robots are upgrading to comprehensive solutions, with profit revisions and potential implementation of embodied intelligence within the year [1] - The company is a leading domestic player in industrial robots, with significant market share in elevator controllers and SCARA industrial robots [1] - The company is a pioneer in domestic automation product substitution, breaking foreign monopolies in elevator control and achieving integrated robot drive control [1] Group 2 - The elevator controller market is expected to see long-term stable growth, driven by new demands in the elevator industry such as urban transit, old elevator upgrades, and international expansion [1] - The domestic elevator procurement market is projected to grow over 45% year-on-year by 2025, with significant increases in exports to regions like the Middle East and Southeast Asia [1] - The semiconductor robot sector has a low domestic substitution rate of less than 10%, with potential acceleration in equipment localization as domestic wafer fabs emerge [1] Group 3 - Haier's empowerment strategy includes enhancing automation products, improving financial metrics, and implementing embodied intelligence [2] - The company is expected to benefit from a recovery in industrial automation demand, with a projected 2.4% year-on-year growth in Q1 2025 [2] - The company plans to launch embodied intelligence controllers and machines in 2025, with support from Haier's industrial internet data and models [3] Group 4 - Profitability is expected to improve with optimized gross margins and cash flow, supported by Haier's global supply chain and efficient management [3] - The company anticipates significant net profit growth from 2025 to 2027, with a projected CAGR of approximately 290% [3] - Despite a high current valuation compared to peers, the company's semiconductor robot initiatives and Haier's involvement are seen as positive factors for future growth [3]

Core Viewpoint - The robotics industry is rapidly developing, with expanding application scenarios, particularly in SCARA industrial robots, which are designed for efficient and precise assembly tasks [2] Group 1: Robotics Industry Development - The robotics industry is experiencing fast growth, leading to an expansion of application fields [2] - SCARA industrial robots are characterized by high precision, speed, efficiency, compact operation, strong adaptability, ease of use, flexibility, and integration capabilities [2] - Key application areas for SCARA industrial robots include electronics manufacturing, automotive parts assembly, packaging and palletizing, medical and laboratory automation, and plastic and hardware processing [2] Group 2: Kory Technology Overview - Kory Technology focuses on the research, design, production, sales, and technical services of industrial automation equipment, as well as precision component manufacturing [3] - The company specializes in the cross-industry application of automation technology in advanced manufacturing, with products used in mobile terminals, new energy, photovoltaics, semiconductors, automotive, hard drives, and healthcare [3] - In the mobile terminal sector, Kory Technology provides various detection and assembly equipment for camera modules and related components, establishing itself as a leading supplier in the industry [3] Group 3: Financial Performance - In the first three quarters of 2024, Kory Technology achieved revenue of 1.757 billion yuan, a year-on-year decrease of 11.17%, and a net profit attributable to shareholders of 165 million yuan, down 4.79% year-on-year [4] - The company has established a mature R&D system with strong technical application capabilities, investing 214 million yuan in R&D, which accounts for 12.18% of its revenue [4] Group 4: Technological Advancements - Kory Technology has a rich reserve of robotics technology, particularly in five key areas: machine vision and optics, precision sensing and testing, motion control and robotics, software technology, and precision mechanical design [5] - The company emphasizes both independent research and development and collaboration with academic institutions, achieving significant results in SCARA industrial robot applications through partnerships, such as with Harbin Institute of Technology [5]