\u3000\u3000 Bluesword Intelligent Technology Co.Ltd(688557) (688557)
The value concept of “only innovation” drives the continuous improvement of the company’s product line and focuses on high-end customers. Since 2017, the company’s R & D expense rate has always been maintained at about 8%, and the proportion of R & D personnel in the total number of employees has exceeded 30%. The company’s products have been successfully applied to new energy, communications, consumer goods, military industry and other industries. It is one of the few manufacturers in China that realize the overall export of logistics equipment to overseas developed countries. It has head customer resources such as China tobacco, Contemporary Amperex Technology Co.Limited(300750) , P & G, muyuan and so on.
The industry is expected to enter the golden development period under two contradictions and three catalysts. Under the catalysis of the contradiction between the increase of total logistics demand and the decrease of total cost, the contradiction of difficult employment and recruitment, the continuous cluster development of China’s high-end manufacturing, the domestic substitution trend of intelligent warehousing and logistics equipment, and the deep integration of manufacturing and logistics industry, China’s intelligent warehousing popular industry is expected to enter a period of rapid development. At the software level, although most enterprises have used information software, it is still lack of systematicness; At the hardware level, nearly half of China’s enterprises have not yet introduced automation equipment. Under the neutral assumption, the market space of intelligent warehousing and logistics equipment for manufacturing industry is expected to exceed 250 billion in 2025.
The company’s products have reached the international advanced level. Technical advantages, multi industry layout and engineers’ bonus backed by Shanda are expected to drive the company to achieve better growth than the whole industry. We grabbed the company’s equipment parameters and compared them with the equipment of international giants Dafu and dematec. We found that the company’s equipment and software are highly competitive in the world, some core parameters are even ahead of international giants, and the company has established an independent research institute in terms of organizational structure, with stable personnel and core technical team Wu Yaohua, chairman of the board of directors, is still the doctoral advisor of Shanda, laying the foundation for the continuous renewal and iteration of the company’s products and technologies. Starting from the scale of orders in hand, the company’s Q4 performance is expected to reach a record high, and the production of super factories lays a foundation for the company to maintain high growth. Historically, the orders on hand at the end of the year are highly related to the operating revenue of the next year, while the performance of the company in the first three quarters is relatively weak, which means that Q4 will usher in the centralized delivery period of 21-year projects, and the operating revenue in a single quarter is expected to reach more than 300 million yuan, a record high; In addition, as of 2021h1, the amount of orders on hand of the company has reached 960 million. Assuming that the net increase of orders on hand of H2 company is – 200 million yuan, the orders on hand at the end of the year are still expected to increase by more than 40% compared with July 20. Although the large-scale project may prolong the delivery cycle and the revenue growth rate is lower than that of orders on hand, with the production of the company’s super factory, The company’s capacity ceiling will also continue to improve, and the company’s business scale and on-hand order scale are expected to continue to achieve high growth.
Investment suggestion: with the transformation of China’s manufacturing industry to high-end, the flexibility and digitization of production put forward higher requirements for warehousing and logistics, and intelligent warehousing and logistics equipment is gradually becoming a rigid demand; For the traditional manufacturing industry, due to the rising labor cost, the cost performance of relevant equipment is expected to become more prominent. We believe that the industry has gradually entered the golden development period, Bluesword Intelligent Technology Co.Ltd(688557) as a local intelligent warehousing and logistics equipment enterprise with an earlier start, the company’s product strength has reached the international leading level and has strong sustainable development ability. With the production of super factory, It is expected that the parent company will realize the absolute valuation of RMB 3.31 billion and the net profit of 2021.86 billion, which is expected to be covered by the parent company for the first time. It is expected to be given a comprehensive valuation of RMB 3.31 billion / 2021.86 billion!
Risk tip: the high-end transformation of manufacturing industry is less than expected, the price of raw materials rises sharply, the company’s technical advantage is lost, the quarterly performance fluctuates nonlinearly, the unemployment rate factor and the inconsistency between Chinese and foreign valuation systems.
