First coverage, “buy” rating, target price 78.81 yuan. Zhaowei Mechatronics focuses on the fields of micro transmission systems, precision injection molded parts and precision molds. Its products are widely used in automotive electronics, XR and other fields, and have become a leading domestic micro transmission system enterprise. With automotive electronics providing the basic revenue market, the humanoid robot dexterous motor module products laid out by the company are expected to open up the company's second long-term growth curve.

Automotive electronics consolidates the basic revenue market, and the first-mover advantage of leading customer resources is obvious. Micro transmission systems are widely used in the field of automotive electronics. With the increase in the level of intelligence of new energy vehicles, we expect the micro transmission market space in the automotive electronics sector to be 27.6 billion yuan/yoy +29% in 2025. The company has a complete product matrix in this field, and the performance of miniature gearbox products of the same diameter is comparable to that of the internationally leading IMSGear. With years of cooperative experience and technical accumulation with manufacturers such as Bosch/BYD/Wei Xiaoli, automotive electronic micro transmission is expected to continue to provide the company with a basic revenue base.

The IPD adjustment system is an important component of VR equipment. VR equipment for leading international customers with leading technology needs to use the IPD interpupil distance adjustment module to achieve the best imaging results. We expect the global market space of VRIPD systems to reach 2.8 billion yuan/yoy +108% in 2027. The adjustment range of the company's IPD system can reach 58-72 mm, and the speed can be accurate to 0.05 mm/s, surpassing peers. Zhaowei has entered the supply chain of leading customers. With the improvement of the VR application ecosystem, IPD products are expected to benefit significantly along with the volume of VR equipment.

Dexterous hands are the core of the versatility of humanoid robots. The company has a full set of dexterous hand solutions. Technology giants such as Huawei/Tesla have all entered humanoid robots, and the industry is rapidly iterating. We believe that the key to humanoid robot sizing is versatility. Dexterous hands are the core of achieving versatility, and motor modules are the key to dexterous hardware. We estimate that the global smart motor module market space is expected to reach 66 billion yuan by 2030. The company's high-performance micromotors can be as small as 6 mm in diameter and have a full set of dexterous hardware solutions. The key components such as the dexterous hand and motor/reducer launched by Zhaowei are all self-made. They have 17 degrees of active freedom, at least 3 degrees of freedom in a single finger, and excellent performance.

How we differ from the market view

We believe that the market has underestimated the company's ability to expand across fields based on existing domestic and foreign customers. In the field of micro device product manufacturing, the company can apply the common points of micro gears to micromotors; on the customer side, the company can also make full use of domestic and foreign resources to enter the emerging field of customer layout.

Profit forecasting and valuation

We expect the company's net profit to be 0.216/0.268/0.317 billion yuan respectively in 2024-2026, which is 63 times the company's average PE value in 2025. Considering the company's accumulated domestic and foreign customer resource advantages and layout in the field of humanoid robot dexterous motor modules, we will give the company 71 times PE in 2025, and the corresponding target price is 78.81 yuan. First coverage, “buy” rating.

Risk warning: competition in the automotive industry intensified; XR development fell short of expectations; humanoid robot development fell short of expectations.