A leader in humanoid robots. The company is one of the few companies in the world with full-stack technical capabilities for humanoid robots, including industry-leading robotics technology (robot motion planning and control technology, servo drives), artificial intelligence technology (computer vision and voice interaction), robot and artificial intelligence fusion technology (SLAM and autonomous technology, visual servo operation and human-computer interaction), and robot operating system application framework (ROSA). The company is one of the few companies in the world that has completed mass production of low torque to high torque (torque from 0.2 Nm to 200 Nm) servo drives. The humanoid robot Walker is the first commercialized biped humanoid robot in China.
Humanoid robots: Surging by storm, the first year of mass production. The industry has ushered in major changes: the domestic policy for humanoid robots is moving in a more positive direction. Relevant policies have been introduced one after another, including top-level design of the industry and support for all aspects of the industrial chain, and the domestic industrial environment for humanoid robots is gradually being optimized. Under the new revolutionary wave of AI technology, robots have also been greatly optimized on the software side. In particular, major breakthroughs have been made in algorithm training, perception ability, and human-computer interaction.
The future of the industry is broad: Considering factors such as cost, demand, and fault tolerance, we believe that humanoid robots will be the first to be implemented in the industrial scene, and then gradually penetrate the home and commercial use through technical optimization and cost reduction. In terms of industrial scenarios, humanoid robots rely on performance and cost advantages, and are expected to partially replace traditional industrial robots and human labor in industrial manufacturing in the future; in home & commercial scenarios, humanoid robots, as one of the important carriers of AI, can be equipped with various advanced models and technologies, including ChatGPT, to better recognize the environment and understand human life, provide emotional value to humans, and are expected to become an important component of human daily life. Corresponding to the market space, according to our estimates, the demand for the industrial scene will reach 3.284 million units, and the demand for the home & business scenario will reach 435,000 units, and the overall market size is close to 40 billion US dollars.
Solid technology, thick and thin hair. Based on continuous investment in R&D, the company has now achieved continuous breakthroughs in robotics technology, artificial intelligence technology, and robot-artificial intelligence fusion technology. In order to continuously consolidate the core competitiveness of humanoid robots, the company maintains a high level of investment in R&D expenses and R&D personnel. In 2020-2023, R&D expenses were 4.29/5.17/4.28/491 million yuan respectively, accounting for 58%/63%/42%/46%, respectively. Based on a series of core technical advantages, the company has gradually iterated more excellent robot products and continues to open up downstream application scenarios.
Profit forecast: As a first-tier humanoid robot enterprise in China, the company relies on years of deep technology accumulation and benefits from the humanoid robot industry wave. It is expected to explore more downstream fields in the future, take the lead in enjoying industry dividends, and provide the company with momentum for continuous development. The company was given 0.6 times the 2024 PS, corresponding to the target price of 223 yuan. The first coverage was given, and a “buy” rating was given.
Risk warning: Downstream demand falls short of expectations, profit forecasts and valuation judgments fall short of expectations.