Boshi Co., Ltd. is a leader in intelligent equipment for material post-processing in China, with a wide range of downstream applications. Since its listing, the company has actively expanded into many emerging fields, including pre-furnace robots in the field of calcium carbide and polycrystalline silicon intelligent packaging equipment in the field of new energy. In 2023, the company signed a strategic cooperation agreement with Harbin Institute of Technology to advance the trillion-dollar market for card slot humanoid robots. In 2024, Bolong Technology, in which the company is a shareholder, was successfully listed. While achieving steady growth in performance, the company has gradually opened up its own growth space. First coverage, giving it a “Highly Recommended” rating!

Leading domestic material post-processing intelligent equipment. The main downstream applications are petrochemicals and chemicals: the company's main products are intelligent equipment for fully automatic packaging and palletizing of powder and granules and complete sets of synthetic rubber post-processing equipment. In 2023, the company's complete fully automatic packaging and palletizing equipment for powder pellets and synthetic rubber post-processing equipment generated revenue of 1.37 and 0.073 billion yuan respectively, accounting for 53.5% and 2.8% of total revenue. Currently, the market size of fully automatic packaging and palletizing equipment for powder granules and complete synthetic rubber post-processing equipment in China is nearly 2 billion yuan. The company is an unrivaled listed company in China. Overseas competitors include Haver Boecker, Moeller, Anderson, etc., and the technical level of the company's products is close to the international level.

Leading the layout of automatic polysilicon packaging equipment and a robot in front of a calcium carbide furnace. The company's automatic polysilicon packaging equipment and calcium furnace front robot can meet the intelligent needs of post-production of polysilicon and calcium carbide manufacturing processes, improve enterprise production efficiency, and create economic value. The company's polysilicon automatic packaging equipment has established cooperative relationships with leading domestic photovoltaic companies. In terms of calcium carbide robots, the company has successively launched key production operation systems such as calcium carbide furnace robots, furnace pumping robot systems, inspection robots, and intelligent pot handling technology, and has implemented smart factories (workshops) for post-treatment of calcium carbide furnaces. Currently, it has overall smart factory solution capabilities for the field of calcium carbide furnaces. Both of the company's businesses are scarce in the industry. We estimate that the domestic market space for automatic polysilicon packaging equipment is about 1.7 billion yuan, and the market space for calcium carbide robots is 3.2 billion yuan.

Entered high-end medical diagnosis and treatment equipment and energy delivery equipment through participating companies. The company's shareholding company Schizerui passed the meeting and submitted registration in June 2023. Another shareholding company, Bolong Technology, went public in January 2024. Schizerui mainly produces endoscopic surgical robots. The products have been approved for marketing but are still in the commercialization stage. Bolong Technology is a leader in domestic pneumatic conveying equipment. It has a market share of more than 30% in the domestic pneumatic conveying system field, accounting for less than 1% of the global market, and has huge room for growth compared to overseas leaders.

Cooperate with Harbin Institute of Technology to develop humanoid robots. In August 2023, the company and Harbin Institute of Technology reached a strategic cooperation agreement on humanoid robots. As of the 2024 semi-annual report, the project optimized and modified the complete machine plan, optimized and improved the structure of key components, and manufactured and tested the improved components; the project also carried out R&D work such as simulation verification of motion control algorithms and physical verification of navigation planning algorithms. Humanoid robots are a trillion dollar market and are expected to open up a growth ceiling for the company.

Investment advice: Boshi Co., Ltd. is a leading domestic leader in intelligent material post-processing equipment. It has many emerging fields and broad room for growth. We expect that in 2024/2025/2026, the company will achieve revenue of 2.794/3.11/3.412 billion yuan and net profit to mother of 0.585/0.657/0.716 billion yuan, an increase of 10%/12%/9% year-on-year, corresponding to PE 25.9/23.1/21.2. First coverage, giving it a “Highly Recommended” rating!

Risk warning: humanoid robot projects are not progressing as expected, environmentally friendly process equipment is under further pressure, etc.