GUILIN FUDA (SH:603166)2025-03-25 14:31Summary of Fuda Co., Ltd. Conference Call Company Overview - Company: Fuda Co., Ltd. - Date of Call: March 25, 2025 Key Points Industry and Market Context - Recent stock price fluctuations of Fuda Co., Ltd. were primarily driven by market sentiment and trading dynamics, particularly influenced by comments from Alibaba executives regarding the AIDMA bubble, leading to a general decline in related industries, including the technology and robotics sectors [3][4] Financial Performance and Business Segments - The impact of Fuda's data center crankshaft manufacturing business is minimal, as it is operated by a joint venture, Fuda Arfin, in which Fuda holds a 50% stake. This segment is not consolidated in Fuda's financials, and even at full capacity, it is expected to generate less than 300 million yuan in revenue, contributing negligible investment income [4][5] - The core growth driver for Fuda in 2025 is anticipated to be the passenger vehicle crankshaft business, particularly due to increased demand for hybrid vehicle crankshafts. Projected revenue increase from this segment is approximately 700 million yuan, with profit growth estimated between 100 million to 120 million yuan [6] Robotics Sector Insights - Fuda Co., Ltd. has three significant expectations in the robotics sector: 1. Technological Advantage: The joint venture, Yangzhou Changban Technology, possesses design and processing advantages in planetary ball screw technology, supported by over a decade of mold technology accumulation, which may lead to cost reductions [7] 2. Client Resource Expansion: Since 2024, Fuda has engaged with key assembly TO one and OEM companies, enhancing its client resource base [7] 3. Comprehensive Product Range: The company is involved in various critical components, including reducers, with a complete product line that includes cycloidal, planetary, and harmonic reducers, indicating a strong position in the robotics market [7] Market Position and Future Outlook - Amid concerns regarding the performance of the infrastructure industry during the annual report and quarterly report period, Fuda Co., Ltd. stands out as a company with predictable performance growth and significant expectations in the humanoid robotics sector. This uniqueness highlights the importance of the recent stock price correction as a potential investment opportunity [8] - The company maintains a target market valuation of 20 billion yuan, emphasizing its continued recommendation as a strong investment choice [8]