China's leading power special robot company, power grid orders are expected to resume. The company mainly targets the fields of electricity, fire protection, rail transit, etc., and provides special robot products and related services. Overall, the company's current customers are mainly in the power industry, and its products are mainly divided into 3 segments:

Operation robots, inspection robots, firefighting robots. Earlier, the company issued an announcement stating that due to the impact of the epidemic, downstream customer bidding and the company's project implementation progress were affected, and the revenue scale declined in 2022. Looking ahead to 2023, we believe that at the macro level, on January 11, China Grid Chairman Xin Baoan said that power grid investment in 2023 will exceed 520 billion yuan, reaching a record high, with a year-on-year increase of about 4%, providing a good foundation for the company's business development. At the micro level, power grid product upgrades and iterations have continuously improved product performance. At the micro level, the company continues to expand its sales scope from the Jiangsu, Zhejiang and Shanghai markets to all provinces across the country, which is expected to bring new revenue growth.

Promote the “robot+industry” development strategy and create a new growth curve. The company is empowering horizontally, promoting and replicating the company's robot products and capabilities to non-grid industries such as rail transit, charging, and cleaning while deepening the power grid. At present, smart shared charging systems have been piloted in Suzhou, Beijing, Wuxi and other cities, and project cooperation has been reached with downstream customers; rail transit robot products have focused on research and development, trial, inspection, etc., and product application results have been well received, and project promotion work has been carried out simultaneously; product research and development, channel construction, and project development for cleaning robots are progressing smoothly. We believe that the new business market is larger and has better growth potential, and is expected to open up a new growth curve for the company in the future.

Profit forecast and investment advice: The company's operating income from 2022 to 2024 is estimated to be 682 million yuan, 911 million yuan and 1,325 million yuan respectively. The net profit returned to the mother is -117 million yuan, 283 million yuan and 468 million yuan respectively. Corresponding to EPS is -0.57 yuan, 1.38 yuan and 2.27 yuan respectively, giving a “buy” rating.

Risk warning: Intelligent investment in power grids falls short of expectations, promotion of the company's new products falls short of expectations, etc.