Huichuan Technology: It is expected that the demand for traditional industries will pick up slightly in 2024 and implement dual strategies to expand overseas markets
Recently, Huichuan Technology announced the minutes of investor activities, in exchange with investors and institutions, Huichuan Technology shared its insights on current market trends and future strategic planning, and revealed its ambitions for overseas markets.
In the face of fluctuations in the economic cycle, Huichuan Technology observed that from January to April 2024, the downstream market demand for general automation showed signs of slow recovery, especially in the areas of injection molding machines, textiles, machine tools, air compressors, plastic processing and logistics, and the order volume achieved a more significant growth. The company’s management said that it is expected that the traditional industry will usher in a certain degree of demand recovery in 2024, and Huichuan Technology will make full use of this opportunity, relying on its deep accumulation in the field of automation, grasping market opportunities, and promoting the general automation business to achieve more stable growth.
For the “action Plan to promote large-scale equipment renewal and the replacement of consumer goods with old ones” launched by The State Council, Huichuan Technology believes that this will be a great benefit to the automation industry. The policy aims to promote the transformation and upgrading of equipment to high-end, intelligent and green, especially in the industrial field, where large-scale equipment replacement will directly stimulate the demand for automation products and solutions. With the introduction of detailed policies around the country, the reduction of enterprise equipment renewal costs will further stimulate market vitality, providing a strong policy support for the growth of general automation business of Huichuan Technology.
Although Huichuan Technology’s servo system and inverter products have taken a leading position in the domestic market, the company has not stopped moving forward. In order to further expand market share, the company plans to improve product performance, deepen market penetration, strengthen the position of domestic brands, expand new markets and increase the layout of overseas markets from five dimensions. Specific measures include optimizing products for high-speed, high-precision application scenarios, leveraging the “domestic substitution” trend, strengthening expansion in discrete and project-based markets, and accelerating global market share gains through the implementation of overseas strategies.
In the field of control products, especially in the development of PLC products, Huichuan Technology has adopted an active strategy, including supplementing large-scale PLC product lines, improving product performance and reliability, building a PLC-centric ecosystem, and deepening the understanding and support of customer processes. Through these efforts, the company aims to narrow the gap with international brands, enhance customer stickiness and enhance the competitiveness of its overall solutions through synergies across multiple product lines.
Looking forward to the future, Huichuan Technology has made clear the new direction of its internationalization road, increased its efforts to move forward to overseas markets, and adopted the dual strategy of “industry line going to sea” and “borrowing ships going to sea”. The former expands its overseas branches by utilizing the multinational customer resources and industry customized solution experience accumulated in the Chinese market; The latter closely follows the overseas expansion pace of China’s leading manufacturing enterprises, and jointly competes for the international market as an important supplier.