MAE(SZ:002009)2022-12-06 09:54Group 1: Company Overview - The company has two main businesses: traditional industrial automation and the automotive recycling industry [2] - The automation business focuses on automotive production lines and has a leading position in the industry, but faces limited growth due to a sluggish automotive market [2] - The company is actively developing the automotive recycling sector through acquisitions and establishing trading platforms for used auto parts [2] Group 2: Market Conditions - The growth of scrapped vehicles has accelerated due to the yellow label vehicle policy, which has now exited, leading to a decrease in recovery and dismantling volumes [2][4] - Despite a large number of vehicles in the market, the average age of cars is still low, indicating that explosive growth in the recycling industry may take another two to three years [2][4] Group 3: Business Strategy - The company plans to develop the recycling business through an extension strategy, considering industry characteristics and licensing restrictions [2] - The wind power business is being phased out, with plans to reduce its share and potentially divest if suitable opportunities arise [2] Group 4: New Energy Vehicles - The company maintains a cautious stance on the current "new energy vehicle boom," noting that traditional automakers are investing relatively little, which poses risks [2][4] - Continuous monitoring of new energy vehicle projects will be conducted, focusing on investments from traditional automakers [4] Group 5: Overseas Orders and Market Strategy - Most current orders are domestic, but the company is adjusting its market strategy to increase overseas orders, primarily targeting Europe [4] - The gross profit margin for domestic orders is declining due to market conditions and bidding policies [4] Group 6: Industry Challenges - The slow development of the automotive recycling industry is attributed to the insufficient natural scrapping rate of vehicles [4] - The approval process for recycling licenses has been decentralized but remains stagnant, with no new licenses being issued [4] Group 7: Financial and Operational Updates - The company has been cautious in acquiring new recycling sites, focusing on those that can synergize with existing operations [5] - The gross profit margin for the automation logistics equipment business has decreased due to low-price competition, but the order situation is expected to remain stable [5] - The automated warehousing business has faced challenges due to a fragmented customer base and unstable market demand, but improvements are anticipated in the second half of the year [5]