Incident: The company released its 2023 semi-annual report. 23H1 achieved revenue of 2.241 billion yuan, up 35.38% year on year, net profit of 97 million yuan, up 27.66% year on year; Q2 achieved revenue of 1,225 million yuan in a single quarter, up 47.55% year on year, and net profit of 54 million yuan, up 234.92% year on year.
Industrial robot revenue grew more than 80% year on year, and market share continued to increase in the first half of 2023. The company achieved sales revenue of 2.241 billion yuan, an increase of 35.38% over the previous year. ① By product, benefiting from the boom in new energy industries such as photovoltaics, energy storage, and new energy vehicles, the industrial robot and intelligent manufacturing business revenue was 1,732 billion yuan, an increase of 46.84% over the previous year. Among them, industrial robot revenue grew by more than 80%, shipments ranked second in the domestic market, and its share increased further; the automation core component business revenue was 509 million yuan, an increase of about 7% over the previous year. ② By market, domestic revenue was +46.51% year on year to 1,585 billion yuan, foreign revenue was +14.39% year on year to 656 million yuan, and the overseas supply chain gradually recovered.
Gross margin remained stable. Optimistic about subsequent scale effects to increase profit. In the first half of 2023, the company's overall gross profit margin was 33.09%, which was basically the same as the same period last year. Among them, the gross margin of the industrial robot and intelligent manufacturing business was 3.4% 6, year-on-year -0.61 pcts; the gross margin of the automation core components business was 31.90%, +1.02 pcts. The cost rate for 23H1 during the period was 29.71%, year-on-year -0.65pcts, and the sales, management, finance, and R&D expense rates were 8.17%, 9.66%, 2.81%, and 9.07%, respectively, year-on-year, and -0.09/-0.85/+0.71/-0.42pcts. Among them, the lower sales and management expense ratio mainly benefited from the company's “All Made By Estan” full-industry chain strategy. The lean management promotion results were remarkable, and operating capacity was gradually increased. The rise in financial expense rates was mainly due to exchange losses and increased interest on loans . In the future, as the company's overall business scale expands, the company's profit indicators will further improve.
New production capacity is about to be released. Digital products strengthen core competitiveness. The company covers the entire “core components+ontology+application” industry chain. The scale effect advantage is outstanding. Currently, the main construction of the company's robot intelligence industrial park phase II project has been completed, and it is expected that the annual production capacity and performance flexibility of 50,000 units/set will be released after all are put into use. Furthermore, the company empowers industrial robots with digital technology, and the E-Noesis platform enables millisecond-level data collection, and provides various services such as process optimization, production management, and prediction to improve the quality and efficiency of operating enterprises, energy saving and efficiency. Currently, it has been used in new energy, heavy industry, electric vehicles, and construction vehicle customers, and the company's competitiveness continues to improve.
The capital increase in Eston Healthcare and Eston Kuzhuo humanoid robots has improved the company's industrial chain layout, and the company has continued to improve its industrial chain layout, and the company has increased capital to expand further into fields such as medical robots, collaborative robots, and humanoid robots. 1) The company and controlling shareholder Prest plan to increase capital to Eston Medical by 60 million yuan. After the capital increase, it will hold 26.68% of Eston Medical's shares, and the company's layout in the medical field will further deepen; 2) The company plans to increase the capital of Eston Cool by 12.5 million yuan. After the capital increase, it will hold 20% of Eston Cool Zhuo's shares. Eston Cool Zhuo is mainly engaged in R&D and production of core components of collaborative robots and humanoid robots. This capital increase is conducive to deepening the company's layout in the field of highly flexible intelligent robots and embodied intelligence, and the product line is expected to be progressively richer.
Investment advice
The company is expected to achieve revenue of 5.219 billion yuan/6.824 billion yuan/8.911 billion yuan and net profit of 277 million yuan/419 million yuan/647 million yuan in 2023-25. The price-earnings ratio corresponding to the current stock price is 72.5X/480X/31.1 million, maintaining the “buy” rating.
Risk warning
Risk of fluctuations in raw material prices, downstream demand falling short of expectations, risk of increased competition, risk of exchange rate fluctuations, new product development falling short of expectations, etc.