The scale of revenue increased rapidly, and net profit improved dramatically. In 2023, the company's revenue was 1.57 billion yuan, +74% year on year, net profit to mother was 77 million yuan, +195% year on year, net profit without return to mother was 75 million yuan, +274% year on year; after excluding share payment fees, the company's net profit to mother was 100 million yuan, +295% year over year. 2023Q4's revenue was 490 million yuan, +44% year over year, net profit to mother was 45 million yuan, +78% year on year, net profit after deducting non-return to mother was 45 million yuan, +87% year on year.

Continue to implement the business policy of “improving quality and efficiency” to enhance profitability. In 2023, the company's gross margin was 22.8%, +0.7 pct year on year; against the backdrop of the PV equipment industry being squeezed by downstream profits and market competition intensified, the company still achieved a gross margin of +8.5 pct year over year in the automation equipment product sales business; the net profit margin was 4.9%, +2.0pct year over year, and the cost rate for the period was 14.0%, -3.94 pct year on year.

Among them, the sales expense ratio was 4.1%, the year-on-year -1.14pct, the management expense ratio (including R&D) was 9.22%, the year-on-year -1.5pct, and the financial expense ratio was 0.7% year-on-year, -1.3pct; Q4 gross margin for a single quarter was 23.5%, +5.5pct year-on-month, and -1.8pct month-on-month, and the net margin was 9.1%, +1.8pct year-on-month.

Inventory & contract liabilities are stable, and new orders have reached a record high. As of the end of 2023, the company's inventory was 500 million yuan, -1.8% YoY, and contract liabilities were 200 million yuan, +35% YoY. New orders of 2.57 billion yuan were signed for the full year of 2023, reaching an all-time peak, with an on-hand order amount of about 1,057 billion yuan. Net operating cash flow in 2023 was -0.28 billion yuan, -110 pct year on year. This was mainly due to differences in the company's sales and procurement settlement cycles. The increase in the company's sales scale and the sharp increase in cash from purchasing goods and receiving labor payments showed a gap in net operating cash flow.

Continuously improve the overall layout of electroplated copper, and the first-mover advantage is obvious. (1) Metallization: Single GW grade solar cell copper plating equipment was launched in June 2023 and shipped to partner customers. The company has completed the second phase of testing on the client, and the test results are good. (2) Graphics: In early 2023, a project was established and implemented to develop solar cell graphical preparation equipment. As of April 2023, the internal feasibility evaluation of the graphical solution has been completed, and laboratory testing is expected to commence in the second quarter of 2024.

With the restart of the FiConTec acquisition project, the leading silicon optical module equipment leader can be expected in the future. Robotec plans to purchase 81.18% of FIKTEC's shares held by domestic counterparty Jianguang Guangzhi and others by issuing shares and paying cash. It plans to purchase 6.97% of each of FSG and FAG held by overseas counterparty ELAS by issuing shares. After the transaction is completed, the listed company will directly and indirectly hold 100% of FIKTEC, FSG and FAG.

Profit forecast and investment rating: Considering the pace of order acceptance, we maintain the 2024-2025 net profit forecast of 13/180 million yuan, and expect net profit to be 220 million yuan in 2026, corresponding PE of 86/62/50 times, maintaining the “increase” rating.

Risk warning: Downstream production expansion falls short of expectations, R&D progress falls short of expectations