The downstream demand of the industrial robot industry slowed down, and the company's performance was under short-term pressure. Q1-Q3 achieved revenue of 254 million yuan, down 26.3% from the same period last year; net profit from home was 72 million yuan, down 43.4% from the same period last year; and net profit from non-return was 66 million yuan, down 36.8% from the same period last year. Of this total, Q3 achieved revenue of 82 million yuan in a single quarter, down 18.4% from the same period last year; net profit from home was 22 million yuan, down 39.9% from the same period last year; and net profit from non-return was 21 million yuan, down 24.9% from the same period last year.

The company's performance has declined to a certain extent, mainly due to the relatively low market demand in the downstream 3C of the company's products and the semiconductor industry, and the slowdown in investment in fixed assets, which puts pressure on the demand for industrial robots downstream of the company.

Good cost control and low capacity utilization drag on gross profit margin

2023 Q1-Q3 's sales gross profit margin is 41.7%, year-on-year-9.4pct, of which Q3 single-quarter sales gross profit margin is 40.5%, year-on-year-11.2pct, month-on-month + 0.4pct. The decline in gross profit margin is mainly due to the fact that the company is in the capacity climbing stage, but revenue is affected by weaker downstream demand, resulting in higher unit manufacturing costs.

2023 Q1-Q3 's net sales profit rate is 29.1%, year-on-year-8.2pct, of which Q3 single-quarter sales net profit rate is 27.2%, year-on-year-8.8pct. The decline in net profit margin is mainly due to the decline in gross profit margin. Cost side, 2023 Q1-Q3 company period expense rate 10.1%, year-on-year-1.1pct, cost control is good. 2023 Q1-Q3 sales / management / R & D / financial expenses are 2.4%, 5.7%, 12.3%, 10.4%, respectively, and + 1.2/+0.8/+2.6/-5.7pct, respectively. The increase in sales expenses is mainly due to the increase in sales and exhibition expenses, while the increase in financial expenses is mainly due to the increase in monetary interest income.

Humanoid robots open up long-term growth space, mechatronics products to increase market development efforts (1) harmonic reducers: small load, high precision, compact structure, mainly used in humanoid robots, such as forearms, big arms, hips and other rotating joints, for the current humanoid robot optimal scheme, the company as the domestic harmonic reducer leader, is expected to fully benefit from the humanoid robot volume.

(2) Mechatronics products: with the development of industrial production in the direction of high precision, man-machine cooperation, mobility flexibility, mechatronics as an industrial technology that can fit the above development trend, it has also been more and more widely developed in the technical route in the field of precision transmission devices. The company's mechatronics products and micro electro-hydraulic servo products have gradually entered the market. As of June 30, 2023, the company has 117 valid patents. At the same time, the company has applied this new technology to the company's new products, such as high-end precision CNC turntable, hydraulic grinding head, adaptive mobile special equipment, high-end CNC machine tools and other new products. With the expansion of the scale of new products, it will help to consolidate the company's leading position in the industry.

Profit forecast and investment rating: taking into account the lower-than-expected downstream demand, we downgrade the company's 2023-2025 homing net profit forecast to 1.08 (original value 1.42) / 1.72 (original value 2.32) / 2.68 (original value 329) million yuan, the current stock price corresponding to the dynamic PE of 1952 122max 79 times, to maintain the "overweight" rating.

Risk tips: industry competition intensifies, customer breakthroughs fall short of expectations, and new product expansion falls short of expectations.