讀後心得

Tongyuan Electric (1504) held a press conference today, where Chairman Li Mingxian stated that last year the revenue of the core electromechanical business group decreased by 10%, but he is optimistic about escaping the recession in the first half of this year. Among the company's three major business groups, only the smart lifestyle business grew slightly by 0.4%, while the electromechanical system experienced the greatest decline. The decrease in revenue from energy storage projects resulted in a 7.6% decline in the smart energy business. Tongyuan analyzed the market conditions in the United States, Taiwan, and China, and expects that as North American demand recovers, it will be beneficial for future performance. Although Taiwan's domestic demand and exports face challenges, the AI and electric machinery industries still hold potential.

Tongyuan (1504) held a press conference today, mentioning that the core electromechanical business group experienced a 10% decline last year. However, Chairman Li Mingxian expressed an optimistic outlook for the performance in the first half of this year, expecting to shake off the shadows of recession.

Tongyuan pointed out that among the three major business groups last year, only the smart living sector experienced growth, increasing by 0.4% compared to the same period last year.
The "electromechanical system" saw the largest decline, with revenue dropping by 10% compared to the same period last year, mainly due to sluggish demand in the North American and European markets. However, Li Mingxian stated that with the recovery of demand in the North American market, it is expected that the company can shake off the recession in the first quarter and even the entire first half of this year; meanwhile, revenue from the "smart energy" sector decreased by 7.6% compared to the same period last year, primarily due to a decline in earnings from energy storage projects.

Tongyuan also provided an overview of the situation in the three major markets: the United States, Taiwan, and mainland China. In Taiwan, the economic indicator score in January decreased by 4 points compared to the previous month, but with the growth of AI business opportunities, exports turned into a red light. In the domestic market, the sales volume index for manufacturing was revised down from 10.4% the previous month to 3.8%; the turnover rate for wholesale, retail, and food service industries dropped from 7.7% to 0.9%, indicating a degree of conservatism. Nevertheless, benefiting from the development of AI and the electrical and mechanical industries, the manufacturing industry's PMI for machinery equipment reached 59.5 in February, maintaining above the prosperity line for four consecutive months, which is favorable for Tongyuan's order intake related to its products.

In addition, the manufacturing industry is planning a decentralized manufacturing layout for the global supply chain, with a positive outlook for the electrical and mechanical equipment sector over the next six months. In the U.S. market, uncertainties regarding tariffs and insufficient consumer confidence have affected investment plans in the consumer goods sector, posing significant challenges for order intake of low-voltage motors and production in Mexico. Moreover, the continued decline in oil and natural gas prices has reduced companies' willingness to invest in capital, putting pressure on order intake for high-voltage motors in the short term. Regarding the Chinese market, although the manufacturing PMI remains in expansion, the year-on-year CPI growth rate has stayed below 0.5%, indicating that consumer spending capacity has not significantly strengthened, and low-voltage motor products still face difficulties. However, the high-quality development projects mentioned during the two sessions, such as AI, electric vehicles, and robotics-related business opportunities, represent a positive and proactive opportunity for Tongyuan to pursue.