Investment events

In the first half of 2024, the company achieved revenue of 0.142 billion yuan, a year-on-year decrease of 49.14%; net profit loss to mother was 0.085 billion yuan.

Key points of investment

Revenue improved month-on-month, waiting for an inflection point in profitability

In terms of revenue, in the first half of 2024, the company's revenue decreased by 49.14% year on year, mainly due to factors such as project implementation and delivery pace; in the second quarter of 2024, the company achieved revenue of 0.102 billion yuan, a year-on-year decrease of 21.45% and a month-on-month increase of 151.83%. In terms of profitability, gross profit margin was 42.30% in the first half of 2024, up 7.38 percentage points year on year, and net profit margin was -61.86%, down 45.23 percentage points year on year; in the second quarter of 2024, gross profit margin was 39.39%, up 20.42 percentage points year on year, down 10.22 percentage points month on month; net profit margin was -50.89%, down 6.21 percentage points year on year and 38.59 percentage points month on month. The increase in the company's profit level depends on the expansion of the scale of revenue, waiting for the inflection point to appear.

Focus on the development and application of AI technology, and continue to consolidate and improve technical strength. In the first half of 2024, the company invested 0.05 billion yuan in R&D, accounting for 35.4% of revenue, an increase of 16.5 percentage points over the previous year. During the period, the company focused on the deep optimization of the “AI platform” and the “data management platform”, and achieved one-stop services from data labeling, image processing to model training and conversion reasoning, which significantly enhanced the platform's integration efficiency. For YJH-LM, a large model of multi-modal hyperconvergence technology released earlier, the company successfully completed the deployment of tasks such as voice interaction and image recognition, successfully implemented the Wensheng Map function, greatly improved the efficiency of image generation, and was able to significantly reduce manpower investment and production costs in scenarios where large amounts of image content are required.

Actively expand the product market and promote the implementation of multi-field and diversified development strategies. In the first half of 2024, the company actively carried out product pilot applications, customer development, channel construction, and market development in multiple industries. In the field of electricity, cooperation and application exploration with various industries such as national grids, photovoltaic energy storage, rail transit, petrochemicals, steel refining, and coal exploration; in the field of smart shared charging, further expanding market share, construction and operation in many places such as Suzhou, Wuxi, Beijing, Nanjing, etc.; in the field of commercial cleaning, delivery to various overseas markets such as Japan, France, etc.; in the field of rail transit, next-generation vehicle inspection robot products have begun project application and pilot work.

Profit forecasting and valuation

The profit forecast was lowered to the “Overweight” rating. Considering the intensification of competition in the industry, we carefully lowered the company's net profit due to mother in 2024-2026 to 0.70, 1.37, and 179 million yuan (0.131, 0.315, and 0.421 billion yuan respectively before the reduction), corresponding EPS was 0.34, 0.67, and 0.87 yuan/share, respectively, and the corresponding PE was 45, 23, and 18 times. In view of the intensification of market competition in the robotics industry, the rating was downgraded to “gain weight”.

Risk warning

Macro and industry situation risks, raw material price fluctuations risk, customer failure to meet expectations, intellectual property risk.