Leading domestic industrial automatic control system device manufacturing industry. The company is a comprehensive industrial automation instrument and control device R&D and manufacturing enterprise. Its products cover various categories of industrial automation instruments and control devices. Its main business is industrial automatic control system equipment and complete engineering, including intelligent actuators, intelligent transmitters, intelligent control valves, intelligent flow meters, temperature meters, material level meters, control equipment and devices, analytical instruments, etc., as well as system integration and turnkey services, which can provide industrial customers with related products and automation solutions.

The company has a strong shareholder background, steady operations, and steady growth in revenue and profit scale.

The industrial automatic control system device manufacturing industry is an important part of the country's major equipment, and the barriers to entry are high. The main product of the industrial automatic control system device manufacturing industry is the basic means and equipment for automatic detection and control of the production process. It is an important part of the country's major equipment. It is an important means of promoting industrial modernization, informatization and energy saving, protecting the environment, achieving industrial upgrading, and transforming the mode of economic growth. It reflects the level of development of the country's high-tech and high-tech industries from an important aspect. The industry has a wide range of business coverage and a wide range of products, including not only individual products (such as actuators, transmitters, control valves, etc.), but also complex system integration and turnkey services. Since the downstream of the industrial automatic control system device manufacturing industry is mainly petroleum, chemical, thermal power, nuclear power, metallurgy, etc., the downstream industry shows the characteristics of large investment, high safety requirements, and high industry concentration, so there are high requirements for product stability, etc., which also causes the industrial automatic control system device manufacturing industry to have high entry barriers.

The company's competitive advantage is obvious. Strong brands, focus on R&D, high collaboration, and stable production promote market development. ① Strong brand:

The company has been deeply involved in the industrial automatic control system equipment manufacturing industry for nearly 60 years. Over the years, the company has cultivated a high level of brand awareness and reputation with excellent technology, reliable products, professional services, and continuous R&D and innovation. Through regular visits and technical exchanges, etc., the company deeply understands customer needs, resolves key difficult issues in a timely manner, and continuously enhances customer stickiness through two-way growth, mutual benefit and win-win situation. ② Focus on R&D: Benchmark world-class standards, accelerate the optimization and upgrading of main products, increase research on key core technologies, and help major projects and key fields to be autonomous and controllable. Continuously improve the market-oriented technology research and development system with products as the cornerstone and innovation as the engine. ③ High collaboration: The company is one of the few comprehensive automated instrument and control device R&D and manufacturing enterprises in China. It has a complete instrument control equipment product system for the whole process of industrial measurement, control and execution. The company's various businesses form a series of products, and have efficient product re-innovation capabilities and customer demand transformation capabilities. Each product category empowers each other and closely collaborates, and can quickly respond to the individual needs of different downstream customers. ④ Stable production: As the first enterprise in the industry to develop the integration of two modernizations and intelligent manufacturing, the company continues to build intelligent production lines, digital workshops, and innovative demonstration smart factories to enhance the digital control and fine management capabilities of the whole process and all elements.

Investment suggestions: The company is expected to achieve operating income of 76.35, 91.98 and 11.082 billion yuan in 2023-2025, yoy +19.9%, 20.5%, and 20.5%; net profit of 6.98, 8.35, and 997 million yuan; yoy +20.5%, 19.7% and 19.3%; corresponding to PE 15.58, 13.02, and 10.91 X respectively. The valuation is cost-effective, covered for the first time, and given a “buy” rating.

Risk warning: Downstream demand is not as strong as expected, technology research and development risk, risk of production capacity falling short of expectations, risk of raw material supply and price fluctuations, etc.