Driven by the dual trends of intelligent manufacturing upgrades and the advancement of “dual-carbon” goals, the industrial automation sector is ushering in a new period of explosive growth. Among these companies, Hongxun Technology (603015), a leading domestic player with 40 years of experience, has secured its position as the top player in the domestic market with its “plastic machinery brain” and is also quietly expanding into the new energy sector to open up a second growth curve.
Many people may not be familiar with Hongxun Technology, but in the plastics machinery industry, its name is considered a “benchmark.” This company, founded in Taiwan in 1984, established itself in Ningbo in 2001 and listed on the Shanghai Stock Exchange in 2015. For forty years, it has focused on only one thing: deeply and thoroughly developing industrial control systems.
</ … Today, its core product, the injection molding machine control system, is not only a national single-champion product, but also holds a domestic market share exceeding 30%, firmly ranking first and known in the industry as the "brain of the plastics machine." From an industry perspective, Hongxun Technology's choice of industry track is quite precise. Its downstream directly connects with the plastics machinery industry, indirectly covering multiple essential manufacturing sectors such as automobiles, electronics, packaging, and medical devices. With the transformation of China's manufacturing industry towards high quality, the demand for industrial automation equipment continues to rise, especially under the "dual carbon" target, energy-saving automation equipment has become a market favorite. Hongxun Technology has long been involved in new energy and digital businesses, perfectly catching this wave of industry dividends. Let's first talk about its core business—industrial automation, which accounts for about 80% of revenue and is the company's "ballast." After years of development, it has formed a complete matrix of "control systems + servo energy-saving systems + digital solutions." Its control system not only has strong customer relationships with leading domestic injection molding machine manufacturers such as Haitian International and Chen Hsong Group, who account for more than half of the domestic injection molding machine market, but also its high-end all-electric servo system is rapidly replacing traditional hydraulic systems. The all-electric servo system is 30%-50% more energy-efficient than traditional hydraulic systems and offers higher control precision, perfectly aligning with the "dual-carbon" target. According to the latest industry data, the penetration rate of all-electric injection molding machines in China exceeded 18% in 2025, an increase of 5 percentage points compared to last year, directly driving the growth of Hongxun Technology's servo system business. In the second half of 2025, the company's all-electric servo system orders increased by more than 20% year-on-year, becoming a new growth point for its core business. Even more noteworthy is its second growth curve—the new energy business. Through the acquisition of the Italian company EEI, Hongxun Technology has successfully entered the fields of power quality control and photovoltaic energy storage. This business now accounts for 15% of its revenue and is growing rapidly. In particular, in 2025, EEI secured multiple European project orders in the photovoltaic energy storage inverter field, with its new energy business revenue increasing by 35% year-on-year in the first half of the year. Even more noteworthy is that EEI is also providing power components for nuclear fusion devices. Although its current revenue share is not high, its early investment in cutting-edge energy technologies undoubtedly lays a significant foundation for the company's future development. Hongxun Technology's core competitiveness is also outstanding. First, its technological barriers: the core technologies accumulated over forty years, such as servo control and industrial communication, cannot be surpassed in the short term. Moreover, the company's R&D investment has consistently remained above 5%, with its three major R&D centers continuously producing new technologies. Second, its customer barriers: deep partnerships with leading manufacturers, high costs associated with customized product replacement, and rapid response from over 30 service outlets nationwide make customer churn difficult. Third, its international layout: expanding into overseas markets through subsidiaries in Europe and Southeast Asia not only mitigates the risks of domestic industry cyclical fluctuations but also allows it to capitalize on overseas growth opportunities. From a financial perspective, financial data from 2022 to 2025 shows that the company's revenue has generally remained stable with a slight increase, growing by 16.88% in 2024. However, the Q3 2025 report shows a slight decline in both revenue and net profit, mainly due to cyclical fluctuations in the injection molding machine industry and short-term weak demand from downstream manufacturing. Nevertheless, the company's gross profit margin has consistently remained above 35%, higher than the industry average, and its debt-to-asset ratio is only around 30%, indicating ample cash reserves and strong risk resistance. From an industry trend perspective, the intelligentization, energy conservation, and integration of the plastics machinery control system industry are inevitable directions. As a leading domestic company, Hongxun Technology is consolidating its traditional business advantages while accelerating the expansion of its new energy and digital businesses, making its future growth logic clear. However, risks should be noted, such as cyclical fluctuations in the industry, changes in international exchange rates, and intensified competition in the new energy business. Overall, Hongxun Technology, as a leading domestic company with 40 years of experience in the industrial automation sector, possesses both a stable core business and growth potential in the new energy sector. Its current valuation is below the industry average, making it a value proposition. With the increasing penetration rate of all-electric injection molding machines and the expansion of its new energy business, the company's long-term development prospects are promising.
