Focus on electronic equipment and consumer electronics businesses. Nanjing Panda completed its first refinancing in 2013 and acquired shares in Shenzhen Jinghua in cash in 2014, effectively enhancing the technical strength, market size and brand advantage of the company's electronic equipment and consumer electronics business.

Welding robots have made a breakthrough. The welding robot products that Nanjing Panda focuses on cultivating have been finalized and sold in small batches. In the future, the company will increase R&D investment and marketing efforts for this business. As a new product in the electronic equipment business, welding robots are expected to become a new profit growth point for the company.

The integration of electronic assets in China is expected to accelerate. In the context of central enterprise reform, China Electronics will increase the asset securitization rate according to the “one sector, one listed company” idea. Nanjing Panda is expected to be used as a military electronic asset integration platform for CLP Panda.

Profit forecast and investment rating: We estimate that Nanjing Panda's net profit from 2015 to 2017 will be 159 million yuan, 153 million yuan and 145 million yuan respectively, and the corresponding EPS will be 0.17 yuan, 0.17 yuan and 0.16 yuan respectively. Considering that the Nanjing Panda robot business is still in a period of rapid development and its expectations as an asset integration platform for CLP Panda, we have given Nanjing Panda a “hold” rating for the first time.

Stock price catalyst: Nanjing Panda welding machine robot received large orders; China Electronics or CLP Panda accelerated asset integration.

Risk factors: Market competition is fierce, and the market share of the company's products is declining; there is uncertainty in the development of new product technology; there is uncertainty about the marketing of welding robot products; the integration of China Electronics or CLP Panda assets is slower than expected.