The world's leading supplier of robot connection solutions continues to expand downstream fields. American Paislin was founded in 1937 and injected into listed companies in 2021. It is mainly engaged in the design, R&D, manufacturing and engineering implementation of industrial automation production lines, focusing on providing turnkey industrial intelligent manufacturing solutions for automobile manufacturing, intelligent warehousing, construction machinery, rail transit and other industrial fields. The company has now set up production bases and R&D centers in China's Changchun, Shanghai, Chengdu, Detroit in the US, and Saltillo in Mexico, etc., to raise the level of internationalization through collaboration between China, the US, and Mexico, establish a global supply chain system, and lay out a global market network. At the same time, we are actively developing non-automobile markets, continuously expanding after-sales, maintenance, and technical improvement markets in warehousing, logistics, and consumer industries, etc., promoting the penetration of integrated industrial automation systems into multiple industries, and achieving optimization and upgrading of product and customer structures. In 2022, the company's revenue was 1,119 billion yuan, net profit was 143 million yuan; in the first three quarters of 2023, the company's revenue was 1,476 billion yuan, +123.67% year-on-year, and net profit of 119 million yuan, +216.16% over the same period last year.
The automotive equipment manufacturing space is vast, and the industrial robot integration market potential is huge. In the context of a new round of global industrial revolution, the German government took the lead in proposing the concept of Industry 4.0 in 2013. Developed countries in the world, such as the United States, Japan, and France, have successively proposed development strategies such as the Industrial Internet of Things, revitalization strategies, and new industrial France. The wave of iterative upgrading of intelligent manufacturing technology has swept the world. Industrial robots are the most representative equipment in the intelligent manufacturing industry, and automobiles are one of the most important downstream applications of industrial robots. In recent years, driven by the transformation of global automobile power and electrification technology, the new energy vehicle industry has continued to develop. Traditional automobile powers, such as Germany, Britain, and France, have successively issued or proposed timetables to ban the sale of traditional fuel vehicles, promoting the transformation of automobile power systems from tradition to electrification. The 2023 US IRA Act came into effect, stipulating that eligible households can enjoy a tax credit of up to $7,500 for new energy vehicles and a maximum tax credit of $4,000 for the purchase of used new energy vehicles. The IRA Act is expected to accelerate the process of increasing the penetration rate of new energy vehicles in North America, and Paislin, as a leading supplier of intelligent connectivity technology solutions in the North American automotive segment, is expected to benefit fully.
Welding technology is leading, equity incentives demonstrate confidence, and business expands to non-automotive. In the field of segmented welding technology in the North American market, Paslin, KUKA, Comau and other well-known international automotive automation giants are in the first tier. Paslin is in a leading position in the technical level of automotive structural parts welding and has the highest market share; it also has a strong competitive advantage in the field of white body welding for new energy vehicles, and has participated in or been responsible for influential iconic projects such as flexible full-body automated welding production lines for leading North American NEV companies. In 2023, the company will implement equity incentives. According to the performance assessment target, the compound annual growth rate of the company's net profit in 2022-2026 is expected to reach 26%. In the future, the company will continue to expand its layout in industries such as intelligent warehousing, construction machinery, construction assembly, and big consumption, etc., promote the penetration of industrial automation business applications into the non-automotive industry, help transform and upgrade its manufacturing level to digitalization, automation and intelligence, further promote the optimization and upgrading of the industrial layout and customer structure, and achieve stable development in the company's non-automobile industry market.
Profit forecasts and investment advice. Paislin has a long history and has a strong first-mover advantage in the North American NEV equipment market. It is one of the few suppliers of automotive industry automation solutions in the North American market that can provide customers with large-scale, complex processes and technical requirements. In addition, the company will also actively develop non-automotive business, continue to expand its layout in intelligent warehousing, construction machinery, construction assembly, and large consumption industries, and promote the penetration of industrial automation business applications into the non-automotive industry. With automobiles as the core business, we actively expand into multiple business fields, and are optimistic about the company's long-term development. It is estimated that the company's net profit from 2023-2025 will be 210/3.41/451 million yuan respectively, covering the first time and giving it a “buy” rating.
Risk warning: risk of macroeconomic and industry cycle fluctuations; market competition risk; global management risk, etc.