Core Investment Logic: The robotics business has become the second growth curve, with significant expectations divergence.
Donghua Testing has clearly shifted its strategic focus to the robotics sector, personally led by the chairman. The current market value does not fully reflect the potential of the robotics business, and a value reassessment is expected once mass production is realized. As a core supplier of joint sensors for XPeng (小鹏) robots, the company has outstanding technical barriers and product matching capabilities. Coupled with the catalytic event of XPeng’s new generation humanoid robot debuting on October 24, there is strong short-term attention and a clear long-term growth logic.
1. Robotics Business: Deeply bound to XPeng, achieving breakthroughs in multi-category sensors.
1. Core supplier position is solid: The company has signed a contract with Nantong Zhenkang (the core supplier of XPeng robot modules) to provide sensors and encoders, with products delivered directly to XPeng along with the modules. Previously, XPeng had made small batch purchases of the company’s sensors, and it is currently at a critical stage of fulfilling mass production expectations.
2. Product coverage and value are prominent: Each XPeng robot requires 40-50 sensors. The company can provide a complete solution including one-dimensional force/torque sensors, three-dimensional sensors, and six-dimensional force sensors, achieving full coverage from core components to overall solutions, with significant value per unit.
3. Technical maturity and scenario expansion are progressing together: The six-dimensional force sensor technology is mature, and it is currently being integrated into robotic application scenarios, with bulk orders expected soon. At the same time, breakthroughs in special scenarios are ongoing, with products like high-temperature resistant sensors for firefighting robotic dogs and explosion-proof sensors under development, which could open up broader market space in the future.
2. Technical Barriers and Future Layout: Military technology empowerment, extending to core robotics components.
1. Dual barriers of hardware and algorithms: Relying on years of military sensor technology accumulation, the company has formed high barriers in sensor hardware design and manufacturing, while also possessing the ability for algorithmic collaboration and iteration, allowing for quick responses to customized demands from robot manufacturers.
2. Horizontal expansion of core technology: In addition to sensors, the company plans to extend into core robotics technology areas such as motion control cards and electronic skin. The development of electronic skin is progressing smoothly, with material selection nearly finalized, and samples expected to be launched in mid-October, which may become a new growth point.
3. Vertical entry into joint modules: Long-term planning focuses on distributed control technology, aiming to enter the joint module field, upgrading from core component suppliers to higher value module suppliers, further enhancing cooperation depth with robot manufacturers.
3. Valuation and Catalysts: Low valuation combined with clear event-driven factors.
1. Valuation has a safety margin: According to Wind’s consensus expectations, the company’s net profits for 2025 and 2026 are projected to be 171 million and 224 million yuan, respectively, corresponding to a PE ratio of about 40 times, with market values of 6.8 billion and 8.9 billion yuan. The current market value does not fully account for the growth expectations of the robotics business, and the valuation is at a low level.
2. Clear short-term catalytic events: On October 24, XPeng will launch a new generation humanoid robot. If the product performs better than expected, Donghua Testing, as a core sensor supplier, will directly benefit and become a core target under the emotional catalyst of the sector.
3. Strong market style adaptability: Recently, the participation of small-cap stocks has increased, and Donghua Testing, as a target in a niche field with marginal changes, combined with its low stock price and low market value characteristics, is more likely to attract funding attention, with short-term elasticity worth looking forward to.
Conclusion and Investment Recommendations:
Donghua Testing has established a first-mover advantage in the robotics sensor field based on military technology accumulation, deeply binding with XPeng robots to achieve a breakthrough from 0 to 1, and has a clear expansion path towards electronic skin and joint modules. The current company valuation does not reflect the value of the robotics business, and coupled with the strong catalyst of XPeng’s robot launch on October 24, the divergence in expectations and low valuation resonate, making it a key focus for investors.