Incidents:
The company released its 2023 semi-annual report. During the reporting period, it achieved operating income of 244 million yuan, an increase of 17.47% over the previous year; net profit of Gimu was 11.42 million yuan, a year-on-year decrease of 49.66%. Among them, Q2 achieved revenue of 110 million yuan, an increase of 34.65% over the previous year; net profit of Gimu was 3,385 million yuan, a year-on-year decrease of 58.04%.
Comment:
Industrial welding robots are growing steadily, and the welding market space is broad. The domestic industrial robot market was under slight pressure in the first half of 2023, and the medium- to long-term development trend is good; MIR Rui Industrial expects the domestic industrial robot market to grow 10-15% year-on-year in 2023. As domestic aging intensifies and labor costs increase, it has become an inevitable trend for welding robots to replace labor. The company has strong technical strength in the field of industrial welding, and is one of the few manufacturers that has mastered the core technology of robot welding equipment, robot arms and controllers.
The market share has gradually increased, and the sales volume of self-produced robots has increased markedly. In the first half of 2023, the company strengthened marketing and achieved positive results in the fields of automobiles, new energy, and general industry; among them, the company produced 528 robots and sold 528 robots, an increase of 285.40% over the previous year. The company's self-produced robots are positioned in the middle and high-end markets. After market acceptance continues to increase, the company's product structure and profit level are expected to continue to improve.
Investment in R&D and marketing expenses has been increased, and the profit growth rate is under pressure. In the first half of 2023, the company's gross margin was 17.72%, a year-on-year decrease of 0.66 pct; the sales expense ratio was 3.18%, an increase of 0.16 pct; the management expense ratio was 5.98%, an increase of 0.88 pct over the previous year; and the R&D expense ratio was 6.58%, an increase of 1.06 pct. A total of 16.03 million yuan was invested in R&D expenses, an increase of 40.01% over the previous year. At present, the company has a total of 36 invention patents, and 2 new invention patents were added during the reporting period; the number of R&D personnel was 105, an increase of 22.1% over the previous year. The next-generation industrial robot controller KC30 developed by the company uses a “new motion control” algorithm to effectively improve the performance of self-produced robots.
Profit forecast: The company's revenue for 2023-2025 is expected to be 4.6/52/590 million yuan, respectively, up 15.9%, 13.8% and 13.1% year on year; return net profit is 0.4/0.5/0.7 billion yuan, respectively, up 1.25%, 29.26% and 42.32% year on year, respectively. Covered for the first time, giving it an “increase in holdings” rating.
Risk warning: orders fall short of expectations, industry competition intensifies, performance forecasts and valuations fall short of expectations