The company held the Dexterous Hand press conference at the Shenzhen Hi-Tech Fair on November 14. Its self-developed electric direct drive multi-finger bionic dexterous dexterous hand uses a full drive scheme; we attended this press conference live. We believe that the company, as the invisible champion of the microdrive circuit, is expected to fully benefit from the rapid development trend of the humanoid robot industry through products such as dexterous hands. Furthermore, according to our understanding, the Shenzhen Qianhai Administration Bureau and the Bao'an District Government hosted a press conference on AI application innovation achievements on November 15. At that time, the Huawei (Shenzhen) Global Embodied Intelligent Industry Innovation Center will commence operation and hold a signing ceremony for selected partners. The Zhaowei Mechatronics Dexterity Project will also be launched as a key new technology and product. We are optimistic that the company, as the invisible champion of the microdrive circuit, highlights its scarcity and growth potential in the field of robotics, and maintains a “highly recommended” investment rating.

Sea of Stars - The medium- to long-term market space for humanoid robots can reach 10 billion US dollars, and dexterous hands are the core link in the industrial chain. Along with the rapid iteration of Tesla's Optimus humanoid robots, global technology companies have strengthened their layout in the humanoid robot field in recent years. Humanoid robots integrate advanced technologies such as artificial intelligence, high-end manufacturing, and new materials, and are expected to become disruptive products after computers, smartphones, and new energy vehicles, with great potential for development and broad application prospects. According to Markets and Markets, the global humanoid robot market is expected to increase from $1.8 billion in 2023 to $13.8 billion in 2028, with a CAGR of about 50.2%. In the long run, the market space could reach trillions of dollars. Dexterous hands are an important medium for humanoid robots to interact with the outside world. They are a direct reflection of the robot's functionality. It is estimated that Tesla Optimus dexterous hands account for 14.0% of the value. According to the China Business Industry Research Institute, the global robotic dexterity market will reach 1.5 billion US dollars in 2023, and will exceed 3 billion US dollars in 2030, with a CAGR of about 10.3%.

Zhaowei held a press conference for dexterous hands to be optimistic about the company's scarcity and growth potential in the robotics field. The electric direct drive multi-finger bionic dexterous hand developed by Zhaowei uses a full driving scheme, integrates a control system including tactile perception and a self-learning control algorithm based on neural networks. It has 17 active degrees of freedom, and each finger can be driven independently, taking into account dexterity and long life design. Specific features include: 1) Using a bionic structural design, including 15 joints, and 17 degrees of freedom, expandable to 20 degrees of freedom, which is very close to the degree of freedom of the human hand; 2) The world's first fully equipped joint power unit, which can be extended to 1 Mbps. 10Mbps, microdrive controller accuracy speed fluctuation ≤ ± 0.5%; 3) Multi-layer PCB design, maximum efficiency ≥ 95%, position accuracy ≤ 0.3°, sensing ≥3. At the press conference, the company showed application scenarios such as needle-piercing leads. Future upgrades include electronic skin, cerebellar function, etc.

The company adheres to the “1+1+1” product strategy and standardized and modular product design concept to ensure reliable quality and a service life of at least 10 years. We believe that as the invisible champion of the microdrive circuit, Zhaowei has outstanding scarcity and growth potential in the field of robotics, and is expected to fully benefit from the rapid development trend of the humanoid robot industry through products such as dexterous hands. In the long run, we are optimistic about the company's microtransmission systems broadening application boundaries and intelligent trends in automobiles, humanoid robots, medical care, XR, etc., and the product value of the company is expected to continue to increase after integrating gearboxes and drives, and there is plenty of room for growth.

Maintain a “Highly Recommended” investment rating. We forecast revenue of 1.51/1.96/2.65 billion for 24-26, net profit of 0.2/0.27/0.37 billion, corresponding PE of 77.4/58.4/41.9 times. Considering the company's technical barriers in the field of micro transmission systems, early card position advantages of leading customers, and expansion potential in various fields such as humanoid robots, smart cars, and XR, while actively promoting vertical integration strategies, we continue to be optimistic about the company's medium- to long-term growth space and maintain a “highly recommended” investment rating.

Risk warning: The development of the humanoid robot industry falls short of expectations, downstream demand falls short of expectations, new product development project progress falls short of expectations, raw material prices fluctuate, and the macropolitical and economic environment fluctuates.