With micromotors as the core, the company has four major business units to promote intelligent product upgrading. The company covers primary and secondary supporting markets, and has established good cooperative relationships with many well-known automakers and multinational auto parts suppliers. At the same time, it actively lays out overseas markets to promote production capacity expansion. With the development of electrification and intelligence trends, the company's product sales are expected to increase further. The first coverage gave an “increase in wealth” investment rating.

Deeply involved in the field of micromotors, the value of bicycles is expected to increase. Since its establishment in 2001, the company has been focusing on providing automotive motors, cleaning pumps, cleaning systems and other products with high stability and reliable quality to automakers and auto parts suppliers. Relying on existing motor and fluid technology, the company's current business plan is divided into four major business units. In the field of motor technology, it is divided into motor business and electric module business; in the field of fluid technology, it is divided into driving vision cleaning systems and thermal management system businesses. The company's revenue increased from 0.33 billion yuan in 2019 to 0.92 billion yuan in 2023. In 2021-2023, the company's revenue increased 71.3%, 26.4%, and 25.0% year-on-year, respectively. 1-3Q2024's revenue was 0.7 billion yuan, up 6.3% year over year.

Leading the trend of electrification and intelligence, promoting product development and upgrading. The company has always paid attention to the integration of existing industrial technology with the fields of new energy vehicles and smart vehicles, and is actively developing other application scenarios for products in the motor field. The company continues to invest in the research and development of motor technology and new magnetic materials. Recently, it has achieved certain technical breakthroughs in harmonic magnetic field motor technology and novel magnetic material technology. Furthermore, relying on the business layout of cleaning systems, in line with the trend of new energy and electrification of automobiles, the thermal management system business unit layout is beginning to bear fruit.

Actively lay out overseas markets and promote R&D and production capacity expansion. The company focuses on cultivating R&D talents and promotes and encourages innovation. Through independent innovation and other methods, simultaneous development has been carried out with many well-known automakers and world-renowned auto parts suppliers, and various types of micromotors, cleaning pumps, cleaning system products and thermal management system products have been developed to meet customer needs. The company attaches importance to the development of new projects for new customers and original customers, and is continuing to promote the construction of production projects in Thailand and the United States.

The first coverage gave an “increase in wealth” investment rating. In recent years, the development trend of the automobile industry in the “new four modernizations”, that is, intelligence, electrification, connectivity, and sharing, has become increasingly clear, and thanks to the Chinese government's support for the NEV sector, the development of NEVs is particularly remarkable and rapid in the field of electrification and intelligence. The company's main business revenue continues to grow, and Micromotors is growing rapidly. The company is expected to achieve net profit of 0.23/0.26/0.31 billion yuan to mother in 2024-2026, respectively, with the first coverage giving it an “increase in holdings” investment rating.

Risk warning: risk of fluctuations in raw material prices; risk of relative concentration of customers; risk of exchange rate fluctuations; risk of new product development; risk of cyclical fluctuations in the automotive industry, etc.