Based on garden machinery, lay out a new circuit for intelligent robots. The company is a high-tech enterprise mainly dealing in garden machinery products. It is mainly engaged in R&D, design, manufacture and sales of garden machinery such as chainsaws, brush cutters, hedge trimmers, mounted lawn mowers, etc., and portable digital generators with gasoline engines as the core component products. The company is actively promoting strategic upgrading on the basis of the original industry, increasing development and resource investment in the field of intelligent robots, actively promoting the transformation of the company's products to intelligent and unmanned operation, and accelerating the cultivation of the company's core competitiveness in the field of new quality productivity.

Revenue growth is steady, and profitability is rising steadily. In 2014-2023, the company's revenue grew from 0.51 billion yuan to 0.667 billion yuan, with a CAGR of 3.03%, and a CAGR of 19.08% in 2020-2023. Growth has accelerated in recent years, mainly due to continuous breakthroughs in overseas channels and continuous product innovation.

2024Q1-3, the company achieved revenue of 0.621 billion yuan, a year-on-year increase of 31.38%. On the profit side, before 2020, due to continuous investment in expenses, net profit attributable to mother was under pressure. During the period 2021-2023, the company's net profit to mother grew rapidly, with a CAGR of 100%. With 2024Q1-3, the company achieved net profit of 40 million yuan to mother, -19.40% year over year. Short-term performance was under pressure due to increased cost investment.

The scale of the garden machinery industry is growing steadily, and the company is actively embracing the new trend of lithium electrification and intelligence. The scale of the garden machinery industry is growing steadily. According to Global Market Insights, the global lawn and garden equipment market is expected to reach 45.45 billion US dollars in 2025, with a compound annual growth rate of about 7.0%, and the overall market space is broad. The company actively embraces new trends in industry development and takes lithium battery series products and intelligent series products as the focus of the company's medium- to long-term development strategy. The company focuses on optimizing, improving and upgrading wheel mowing products, and further increases investment in the research and development of lithium battery products. In order to further catch up with the development trend of intelligence, the company established Shanghai Zhongjianggao Krypton Robot Co., Ltd. in Shanghai in '23 to launch the GOATBOT intelligent lawnmower robot, which is expected to enter mass production soon.

Improve the overseas marketing network and continue to expand the European and American markets. With a high level of technical advantages and product quality assurance systems, after more than ten years of active development, the company has established a relatively complete marketing network and after-sales service system. Currently, the marketing network covers Europe, America, Australia and Asia. The company exports its products to more than 50 countries and regions, and has more than 100 customers in the United States, Germany, Italy, France, the United Kingdom, Australia and other export regions. In 2022, the company established TOPSUN USA INC, a wholly-owned subsidiary in the US, and continuously optimized and upgraded the management system and staffing of the company's US subsidiary, introduced a management team with deep industry background and rich experience in the North American market, expanding product sales channels and developing new customers in multiple dimensions, laying a good foundation for further opening up the North American market; in 2023, the company established a wholly-owned subsidiary, TOPSUN EUROPESAS, in France to further consolidate the company's dominant position in the European region; in addition, the company expanded the Russian market channel, and continued to achieve breakthroughs.

Invest in a humanoid robot company and enter a new circuit for intelligent robots. The company is actively promoting strategic upgrading on the basis of the original industry and increasing development and resource investment in the field of intelligent robots. Make full use of the advantages the company has accumulated over the years in the manufacturing industry, actively promote the transformation of the company's products to intelligence and unmanned operation, and accelerate the cultivation of the company's core competitiveness in the field of new productivity. In March 2024, the company invested in 1X Holding AS. 1X is a high-tech company focusing on the development of humanoid robots. The company and 1X are not only satisfied with equity cooperation, but also focus on subsequent business and supply chain cooperation. Subsequent companies will effectively integrate domestic related industrial chain resources to provide effective support for 1X to quickly reduce costs and broaden market channels for next-generation humanoid robots. In May 2024, the company established a holding subsidiary, Jiangsu Jianmi Intelligent Robot Co., Ltd., to focus on the development and sales of intelligent robots. At the 2024 World Robotics Expo, the company released the first four-legged robot brand, Lingrui Model P1 (tentative name, based on the actual product name released). The first generation product has already been initially formed during early preparations and will be launched on the market as planned.

Profit forecast: We expect the company to achieve revenue of 0.905/1.204/1.578 billion yuan in 2024-2026, +36%/33%/31%, net profit to mother of 0.067/0.111/0.164 billion yuan, +40%/65%/47%, corresponding EPS of 0.51/0.84/1.24 yuan, corresponding PE of 145/88/60x, for the first time coverage, giving the company a “recommended” rating.

Risk warning: Increased market competition, fluctuating raw material costs, exchange rate fluctuations, sales falling short of expectations, etc.