设备更新具体包括重点行业设备更新改造、支持交通运输设备和老旧农业机械更新等。同时实施汽车、家电等产品以旧换新。公司全方位布局工业电机、日用电机及电动交通领域，高效电机、永磁电机、电机+变频等新电机产品持续迭代升级，我们认为公司主业有望受益于设备更新，保持稳健发展。Key investment points:
The company is mainly engaged in motors and controls, which are widely used downstream. The company is deeply involved in motors and control devices, and has a wide range of products in the fields of industrial motors, household motors, and electric transportation. Among them, industrial motors include low voltage and high voltage motors. Low voltage motors are mainly used in the pump, fan and compressor industries; high voltage motors are mainly used in mining, metallurgy, oil and gas, petrochemical industries. Downstream in the field of household motors includes HVAC, washing machines, refrigerators, small household appliances and power tools. The company's revenue for the first three quarters of 2024 was 12.19 billion yuan, +1.1% year on year; net profit to mother was 0.64 billion yuan, or -30.9% year on year, gross margin was 25.5%, -0.5 pct year on year.
Driven by equipment updates and trade-in of consumer goods, demand for motor products is expected to grow steadily. In March 2024, the State Council issued a notice on the “Action Plan to Promote Large-scale Equipment Renewal and Consumer Goods Trade-In”, which proposes that by 2027, the scale of equipment investment in the industrial, transportation and other fields will increase by more than 25% compared to 2023.
Equipment updates include equipment upgrades in key industries, support for transportation equipment and the renewal of old agricultural machinery, etc. At the same time, trade-in of products such as automobiles and home appliances will be implemented. The company has a comprehensive layout in the fields of industrial motors, household motors and electric transportation. New motor products such as high-efficiency motors, permanent magnet motors, and motor+inverter continue to be iteratively upgraded. We believe that the company's main business is expected to benefit from equipment updates and maintain steady development.
The new energy business is developing rapidly, and aeromechanics are expected to be scaled up. The company's new energy industry includes businesses such as photovoltaics, wind power, energy storage, hydrogen energy, and electric transportation. Focusing on low-carbon travel needs, the company actively creates solutions for industry segments such as offshore ships, electric aviation, new energy vehicles, and electric mopeds: the company and the China Civil Aviation Science and Technology Research Institute jointly built a “joint laboratory” and joined hands with the COMAC Beijing Research Center to establish an aviation electric power systems division to accelerate the commercial application of electric aviation technology. In 2024, the “Implementation Plan for Innovative Application of General Aviation Equipment (2024-2030)” was issued, which proposes to accelerate the serialization development of general aerodynamics products: promote large-scale mass production of aeromotors and drive systems of 250 kW and below, and application verification of 500 kW products. We believe that the prospects for low-altitude economic development are bright. The company has a forward-looking layout of aero motors, and there is plenty of room for growth.
Entering embodily intelligence, scene applications continue to break through and innovate. The company layout has developed key components for humanoid robots such as high-explosive joint modules, servo drives, and frameless torque motors to help the industrialization and application of bionic robots with the ultimate cost ratio. The company has also deployed solutions such as bionic robot inspection systems, high-altitude emergency delivery systems, and exoskeleton assistance systems, which can be widely used in various fields such as electricity, petrochemicals, coal mines, emergency rescue, and medical rehabilitation.
Investment advice: We expect the company's net profit to be 0.91/1.08/1.27 billion yuan in 2024-2026, respectively, and the corresponding EPS of 0.70/0.83/0.97 yuan, respectively. The company is based on motors, and its applications have expanded to the field of low altitude and robotics, and there is broad room for growth. Referring to comparable companies, the company was given 25-30 times PE in 2025, corresponding to a reasonable value range of 20.80-24.96 yuan. It was covered for the first time, and the company was rated “superior to the market”.
Risk warning: Demand for equipment updates falls short of expectations, new product development falls short of expectations, and industry competition intensifies.