Investment events

(1) In 2023, the company achieved operating income of 748 million yuan, an increase of 11.90% over the previous year; net profit to mother - 10 million yuan, net profit of non-return to mother - 0.3 million yuan.

(2) In the first quarter of 2024, the company achieved operating income of 40 million yuan, a year-on-year decrease of 73.06%; net profit attributable to mother - 34 million yuan; net profit not attributable to mother - 39 million yuan.

Key points of investment

Power grid business: The product matrix continues to expand, promote intelligent upgrading and innovation in multiple industries. In 2023, the company will continue to promote robot R&D, application and service in the power market, increase training efforts, optimize deployment capabilities, improve quality control and production efficiency; actively expand intelligent robot cooperation and application exploration in various industries such as national grids, photovoltaic energy storage, rail transit, petrochemicals, steel refining, and coal exploration, etc., to promote industry upgrading and robot application expansion.

Off-network business: Commercial cleaning robots are going overseas at an accelerated pace, and shared charging coverage continues to expand commercial cleaning: In March 2023, the company officially released Kirin J110, Kunpeng J40, Kunpeng J30 series commercial cleaning robots, and the cloud management platform “Shanhai” to advance into the intelligent cleaning market. At the same time, the company has a parallel layout in domestic and overseas markets, and has initially established sales channels covering East Asia, Europe, North America and other regions. At present, products have been delivered in many overseas markets, and the domestic market has landed in various scenarios in Nanjing, Shenzhen, Guangzhou, Chongqing, Dongguan and other regions. Shared charging: At present, the product has been successfully expanded from Suzhou to Wuxi, Nanjing, Beijing, Yinchuan, Shaoxing and other places, covering various fields such as residential buildings, hotels, and integrated office buildings. In addition, the company successfully obtained the qualification for the construction and operation of electric charging (switching) facilities for new energy vehicles in Jiangsu Province.

AI: In-depth research and development of basic robot platforms and technology to promote the application of humanoid robots in artificial intelligence-related technology fields. In 2023, the company focused on promoting its professional application in segments such as electricity, cleaning, and rail transit, and established and released a large model YJH-LM based on multi-modal hyperconvergence technology. The model can be used to perform tasks such as voice interaction, image recognition, and task generation, and combines artificial intelligence technology with traditional robot applications. In addition to exploring cloud-based artificial intelligence technology, the company is also expanding applications in standardized construction and generalization construction, and continues to develop edge AI technology.

Profit forecasting and valuation

The profit forecast was lowered and the “buy” rating was maintained. Considering the intensification of competition in the industry and the decline in product prices, we carefully lowered the company's net profit from 2024-2025 to 131 million yuan and 315 million yuan (400 million yuan and 547 million yuan respectively before the reduction), and added the 2026 forecast to 421 million yuan, corresponding EPS of 0.63, 1.53, and 2.04 yuan, respectively, and the corresponding PE was 29, 12, and 9 times. Maintain a “buy” rating.

Risk warning

Macro and industry situation risks, raw material price fluctuation risks, intellectual property risks.