Key points of investment:
The year of integration of the industrial control industry chain. In recent years, the company has continued to expand in depth in the industrial control industry chain. 2018 is the year of integration of the company's industrial chain. As the world's largest agent for Panasonic servo drive systems, Huitong Technology is rich in downstream customers and channel resources; Xiaoao Xiangrong has extensive experience in the field of industrial robot system integration. With the gradual completion of business run-ins between various subsidiaries, the company's downstream customer development and integrated solution provision capabilities are expected to improve significantly.
The expansion of robot production capacity is progressing steadily. At the end of 2017, the company raised capital by issuing convertible bonds to expand robot production capacity. Intelligent manufacturing projects for robots and key components and motion control system products are under construction, and the construction period is expected to be around 1 year. After the project is put into operation, it will significantly increase the production capacity of robots (six-joint, SCARA, and robot flexible workstations with a total production capacity of 13,500 units (sets) per year), motion control systems, and servo drives to improve delivery capacity.
Industrial cooperation takes great strides: join hands with JD to deploy intelligent logistics and service robots. In June of this year, the company and Jingdong signed a strategic cooperation agreement. The two sides plan to establish a complete logistics ecosystem through strategic cooperation and integration of resources, accelerate the implementation and application of intelligent logistics equipment and service robots, while focusing on in-depth cooperation in the field of intelligent robot manufacturing.
JD: E-commerce's leading level of intelligent logistics.
In the field of e-commerce, JD represents the leading level of intelligent logistics. JD's intelligent control system integrates warehouse management, control, sorting and distribution information. It can calculate 68 billion viable operating paths for more than 300 robots in 0.2 seconds and make the best decisions. The intelligent control system is developed, integrated and has independent intellectual property rights for JD.
Strong alliances, the strengths of each exhibition.
Xinshida has relatively complete industrial chain advantages and manufacturing capabilities. The main areas of cooperation with JD include:
(1) Interactive cooperation between robots and elevators: Using the advantages of JD's distribution scenarios and the elevator interaction requirements of service robots, combined with the advantages of Xinshida elevator control systems, to jointly integrate elevator industry resources and jointly develop markets.
(2) Intelligent logistics robot and service robot manufacturing cooperation: Taking advantage of JD's market application demand for delivery robots and combining Xinshida's advantages in intelligent manufacturing in the field of robotics, the two sides will cooperate in intelligent manufacturing of intelligent delivery robots and service robots.
Profit forecasting and valuation. We expect that in 2018-2020, the company's net profit attributable to the parent company will be 142 million yuan, 171 million yuan and 201 million yuan respectively. The year-on-year increase was 3.32%, 20.25%, and 17.46%. Corresponds to earnings of $0.23, $0.28, and $0.32 per share. The 2018 PE 35-40X was given a reasonable value range of 8.05-9.2 yuan, giving it a “superior market” rating.
Risk warning. The progress of automation business integration fell short of expectations; demand in the industrial control market is slowing down.