Yijiahe (603666) Tracking Report: Substantial Progress in the Business of Live Working Robots
The company’s first orders for live-operating robots have been placed in 4Q19.
The company established a joint venture with Guodian NARI and Sanyuan Electric Power. The three parties have formed 北京桑拿洗浴保健 good complementarities in terms of technology, resources and markets.
In 2020, the company’s orders for live-operating robots are expected to increase.
Raise the company’s net profit forecast to 2020/21 to 3.
USD 0 billion, maintain “Buy” rating.
Category expansion: The company’s live-operating robot products were launched to the market in 4Q19.
In November 2019, the company established State Grid Ruijia Intelligent Robot Co., Ltd. in a joint venture with Guodian NARI and Tianjin Sanyuan Power.
The company invested 100 million yuan, accounting for 40% of the equity of the joint venture.
Both Guodian NARI and Tianjin Sanyuan Power are subsidiaries of State Grid, and they have good complementarities with the company in terms of technology, resources, and markets.
After the establishment of State Grid Ruijia, the three parties will use the joint venture as a platform to promote the industrialization of live working robots.
2019Q4, the company’s live-operating robot products are launched to the market.
Regional expansion: The layout outside the province is advancing, and the proportion of orders has increased.
Before 2019, more than 90% of the company’s business came from Jiangsu Province.
In 2019, the company’s proportion of orders outside the province increased to 15-20%.
The company became the first listed company in the industry in 2018.
After the listing, the company enhanced its R & D capabilities and successfully launched a competitive live-operating robot product.
In the future, the company’s provincial external business is expected to open up the situation through the live-operating robot business.
Profit-driven: New orders received in 2019 will grow by more than 30% each year.
The power robot industry is currently in a boom cycle.
In 2015/16/17/18, the company added orders 2.
1 ppm, pending orders at the end of the period reached 1.
We expect the company’s annual additional orders to be 9-10 trillion in 2019, and the outstanding orders at the end of the period will exceed 6 trillion.
The company’s order settlement cycle is about 6-9 months. New orders in 2019 will lay a good foundation for 2020 performance.
Risk factors: Lower-than-expected orders for live-operating robots; increased competition in the industry.
南京夜网 Investment suggestion: Considering that the company’s orders for live-operating robots have already landed in 2019Q4, we maintain the company’s 2019 net profit return to motherhood2.
400 million, raise the net profit forecast for mothers to 2020/21 to 2.
0 billion yuan (previous forecast was 3.
0/3.700 million), corresponding to an EPS forecast of 2.
01 yuan, the current price corresponding to PE is estimated to be 33/25/20 times.
The company’s overall estimate is attractive and we maintain a “Buy” rating.