Main points of investment

This Thursday (July 27), there is a gem listed company "solid Hi-Tech" inquiry.

Solid Hi-Tech (301510): the company focuses on the research and development of core technologies of motion control and intelligent manufacturing, forming independent and controllable technology systems such as motion control, servo drive, multi-dimensional perception, industrial field network, industrial software and so on. "equipment manufacturing core technology platform" is constructed. From 2020 to 2022, the company achieved operating income of 283 million yuan / 338 million yuan / 348 million yuan, YOY of 14.33%, 19.33%, 3.15%, and a compound annual growth rate of 12.06%. The net profit of homing was 28 million yuan / 65 million yuan / 53 million yuan, and the YOY was-43.67%, 131.06%, 18.38%, respectively, and the annual compound growth rate of three years' net profit was 2.04%. During the latest reporting period, 2023Q1 achieved an operating income of 75 million yuan, an increase of 6.28% over the same period last year, and a net profit of 2 million yuan, down 38.28% from the same period last year. According to the preliminary forecast, the company is expected to achieve a net profit of 21.05 million yuan to 22.8 million yuan from January to June 2023, changing from-24.54% to-18.26% over the same period last year.

Investment highlights: 1. The founder of the company has a deep accumulation in the technology industry in the fields of robotics, microelectronics and motion control. The company was founded in 1999 by Li Zexiang, Gao Bingqiang and Wu Hong of the Hong Kong University of Science and Technology, three internationally renowned scholars and experts in the fields of robotics, microelectronics and motion control. Li Zexiang was a researcher in the artificial Intelligence Laboratory of the Massachusetts Institute of Technology. he is also a director of DJI Innovations Technology Co., Ltd. Gao Bingqiang, a former researcher at Bell Laboratories in the United States, is a world-class expert in the field of advanced semiconductor design and manufacturing, supporting more than 40 Chinese semiconductor design companies. Wu Hong has long focused on the research of motion control technology. he is the vice chairman of the China Industrial Machinery and Electrical system Standardization Committee. The company has focused on motion control technology for more than 20 years, and is one of the few high-end equipment manufacturing enterprises that master the key links of equipment manufacturing in the five directions of "perception, control, decision-making, execution and industrial interconnection", with a comprehensive technology layout. In addition, the company attaches importance to the layout of the industrial system, and has targeted investments in 20 industrial chain enterprises in the fields of encoders, artificial intelligence, industrial IoT cloud platforms, industrial basic components, machine and system integration, vertical industry terminal applications, power semiconductors, etc., to help form the synergy of technology and customer resources. 2. The company attaches great importance to research and development, which promotes the domestic substitution of motion controller and servo drive technology in middle and high-end fields. The company focuses on research and development, focusing on high-end applications such as industrial robots, multi-axis CNC machine tools, semiconductor equipment, and intelligent bit control. Forward-looking research is carried out around control, sensing, data exchange and other underlying common technologies. From 2020 to 2022, R & D expenses accounted for an average of 20.50% of operating income. The two core products, high-performance network motion controller and servo driver, have promoted the domestic substitution in middle and high-end fields, and developed an independent and controllable industrial field network communication protocol with multi-master-slave, peer-to-peer ring network and high real-time performance, among which the motion control technology is in the first echelon of the domestic market all the year round, and the performance of high-end products is better than that of OMRON, ACS and Aerotech. Servo drive products solve the problem of high-speed and high-precision positioning in precision machining equipment, and the core control performance is calibrated by Kolmogen, ELMO and other international advanced manufacturers.

Comparison of listed companies in the same industry: considering business and product types comprehensively, Huichuan Technology, Leisai Intelligence, Bachu Electronics and Eston are selected as comparable listed companies of solid high technology. From the point of view of the above comparable companies, the average income in 2022 is 7.281 billion yuan, and the gross profit margin is 46.35%. The arithmetic average PE-TTM excluding the extreme value is 44.14X. In view of the small size and volume of the company and the differences in the competitive pattern of the same industry, we think that the comparability of the above PE-TTM may be relatively limited. In comparison, the revenue scale of the company is lower than the industry average, and the gross profit margin is higher than the industry average.

Risk hint: companies that have started the inquiry process still have the possibility that they will not be listed due to special reasons, the content of the company is mainly based on prospectuses and other public materials, and the selection of listed companies in the same industry is not accurate. Risk, content data interception may have interpretation deviation, and so on. The specific risks of listed companies are shown in the text.