Incidents:
The company released the 2023 semi-annual report. During the reporting period, it achieved operating income of 1,742 million yuan, an increase of 8.39% over the previous year; net profit of Gimu was 124 million yuan, an increase of 584.88% over the previous year. Among them, Q2 achieved operating income of 831 million yuan, an increase of 5.24% over the previous year; net profit of the parent group was 06 billion yuan, a year-on-year decrease of 5.62%.
Comment:
The robot product and system business is growing rapidly, and the future prospects are promising. In the first half of 2023, the company's robot products and systems achieved revenue of 516 million yuan, an increase of 87.6% over the previous year; gross margin was 14.70%, a year-on-year decrease of 7.87 pct. The company has a full range of multi-joint robots and SCARA robots, which can meet applications in multiple scenarios; the subsidiary Xiaoao Xiangrong has extensive experience in intelligent flexible production lines. Since 2023, countries and regions have successively introduced a number of plans and policies to support the development of industrial robots. As a benchmark enterprise for industrial robots in Shanghai, the company is expected to usher in a development window under the guidance of policy dividends.
Elevator control products and systems are developing steadily, and attention is being paid to the recovery of real estate brought about performance restoration. In the first half of 2023, against the backdrop of various real estate policies, the number of new domestic elevators was 745,000, an increase of 14% over the previous year. The company's elevator control products and systems achieved revenue of 345 million yuan, an increase of 36.58% over the previous year; gross margin was 23.41%, a year-on-year decrease of 2.91 pct. The company's twin elevator system can reduce the number of shafts in the building, optimize space use, have high energy recovery efficiency, and continue to improve product competitiveness.
The control and drive products business is under pressure, mainly affected by sluggish industry demand. According to MIR Industrial data, overall demand in the automation market industry was sluggish in the first half of 2023. The overall market size was 151.9 billion yuan, a year-on-year decline of 2.44%. In the first half of the year, the company's control and driving products business achieved revenue of 742 million yuan, down 22.16% year on year; gross margin was 18.67%, down 2.69 pct year on year.
Profit forecast: The company's revenue for 2023-2025 is expected to be 34.0/38.0/4.23 billion yuan, respectively, up 9.8%, 11.9%, and 11.2% year on year; net profit from returning to income is 1.5/16/170 million yuan, respectively, with year-on-year increases of 5.9% and 8.0% in 2024 and 2025. 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