Event: On the morning of May 28, the “New Quality Productivity Empowers New Industry Development — Multi-Field Application Summit Forum” hosted by Wuxi Best Precision Machinery Co., Ltd. was held at the Yuhua Precision Machinery factory area, a wholly-owned subsidiary of Best.
The downstream verification of linear motion components was successful, and roller screw pairs for humanoid robots and ball screw pairs for automobile braking systems were exhibited. The main managers of the three machine tool mainframe companies, Beijing Jingdiao, Haitian Precision, and Zhejiang Heideman, introduced the application verification of Yuhua Precision's linear moving parts on their different machine tools. At the same time, they also exhibited the batch parts processing process of the Beijing Jingdiao Double Spindle 5-axis Machining Center, Haitian Precision Vertical Machining Center, and Heideman Double Spindle Turning Center equipped with three different linear moving parts from Yuhua Precision. In addition, actual products developed by Yuhua Precision Machinery, such as small planetary roller screw pairs with two different structures, which can be applied to the linear motion joints of humanoid robots, as well as two typical ball screw pairs used in EHB braking systems and EMB braking systems for new energy vehicles, were also exhibited.
Collaborative development in the three major fields to seize opportunities in the field of humanoid robots: in the first tier of industry, the company uses the core competitiveness of “machinery+casting+intelligent equipment” to further promote the recognition of the company's products and services by strategic customers and increase the company's share in the market segment; in the second-tier industrial sector, the company accelerates the pace of construction of Anhui Best. The total land area of the project is about 110 acres, and the total construction area is about 70,000 square meters. It is expected that trial production will be completed in mid-2024 and production capacity will gradually rise in the second half of 2024. The company also continues to introduce a team of outstanding technology, production and marketing talents in the field of new energy vehicles to carry out research, development and manufacturing of core components in related fields to empower the development of the company's second-tier industry; in the third-tier field, the company uses its wholly-owned subsidiary Yuhua Precision Machinery as an independent platform to target high-end machine tools, automobile transmission (line controlled motion, wire control steering), automation industry, and humanoid robot business.
Investment advice: We expect the company to achieve net profit of 3.52/4.63/566 million yuan in 2024-2026.
The corresponding PE was 25.87/19.68/16.09 times, respectively, maintaining the “gain” rating.
Risk warning: R&D projects fall short of expectations; increased risk of industry competition; macroeconomic downside risk.