China Securities Co., Ltd.: Smart logistics is expected to gain momentum first, and we are optimistic about companies with strong comprehensive strength in hardware, software, and scene mastery.

China Securities Co., Ltd. released a research report stating that the global smart logistics market is expected to exceed 500 billion yuan by 2025, with the fastest growth in mobile automation equipment, reaching a market size of nearly 150 billion yuan, and having the most development potential. From the supply side, with the rapid development of AI, mobile Siasun Robot & Automation products are moving towards a more intelligent direction, and currently have low penetration rates with huge room for improvement; furthermore, due to the maturity of technology and cost reduction driven by the mature industry chain, mobile Siasun Robot & Automation is gradually becoming more economical in various industries, and is more conducive to future mass production. From the demand side, downstream customers are seeking efficiency improvements and cost reductions, and the future application areas of mobile Siasun Robot & Automation are expected to continue to expand. Key points of China Securities Co., Ltd. include: Exploration of market space: How do we view the smart logistics and related equipment market and penetration rates? Smart logistics is an automated supply chain system that combines "hardware + software" to improve logistics efficiency, involving core devices such as AGV/AMR and unmanned forklifts. The global warehouse automation solution market is expected to exceed 500 billion yuan by 2025, with the highest growth rate in the Asia-Pacific region, and the market size of China's smart logistics is estimated to be about 120 billion yuan; in terms of segmentation, mobile automation equipment has the fastest growth rate, with a market size of nearly 150 billion yuan and the most development potential. From the supply side, with the rapid development of AI, mobile Siasun Robot & Automation products such as AMR and forklift AGV are moving towards a more intelligent direction, with current penetration rates only in single digits, and with significant room for improvement; additionally, due to factors such as the improvement of technology maturity, cost reduction driven by the mature industry chain, and competition driven by the entry of multiple participants, the average price of various mobile Siasun Robot & Automation products has been declining in recent years, gradually becoming more economical in various industries and more conducive to future mass production. The bank's calculation shows that the payback period for unmanned forklifts in 1-3 shifts is 2.5 years, 1.1 years, and 0.7 years respectively, whereas the normal lifespan of a forklift is usually 8-10 years, meaning that unmanned forklifts already have an advantage in overall lifecycle costs. From the demand side, downstream customers are seeking efficiency improvements and cost reductions, and currently, industries with high growth, requiring 24/7 operation, and relatively harsh environments are leading the way in mass production. The future application areas of mobile Siasun Robot & Automation are expected to continue to expand. Deconstruction of the industry chain: What key technologies and components are involved in mobile Siasun Robot & Automation? Key technologies involved in mobile Siasun Robot & Automation include navigation positioning, obstacle avoidance sensing, and planning control. Compared to traditional handling tools, the main incremental cost comes from automation-related components (sensors, controllers). Sensors are the "eyes" of mobile Siasun Robot & Automation, and currently, SLAM-based products have become mainstream, accounting for approximately 75%, with laser-based solutions being more mature than vision-based solutions; controllers are the "brains" of mobile Siasun Robot & Automation, with high technological barriers and are a high-profit sector in the supply chain. Investment recommendations Currently, there are many participants, and the bank is more optimistic about companies with strong comprehensive strengths in hardware + software + scene mastery. With the background of the rapid development of smart intelligence, innovative products are expected to generate revolutionary demand, and companies with strong product innovation capabilities are likely to gain a larger market share in the future. In addition, overseas markets have better profit margins, and companies with a leading edge in overseas expansion are expected to have better financial performance.