\u3000\u3000 Bluesword Intelligent Technology Co.Ltd(688557) (688557)
Company introduction: it is a leader in the field of intelligent logistics and has a complete business chain. 1) Intelligent logistics system solution provider: founded in 1993, the company has become a full process intelligent logistics system solution provider, which can provide R & D, design, production, sales and services of intelligent logistics system. It is an advantageous enterprise in the field of intelligent logistics system equipment in China. 2) Intelligent logistics Siasun Robot&Automation Co.Ltd(300024) is the core, and the business chain is fully covered: the company’s business scope covers the front, middle and rear business chain of the intelligent logistics system. The company can provide customers with engineering technology consulting and planning services in the front-end market, and the company can provide customers with customized intelligent warehousing logistics automation system with high integration of intelligent Siasun Robot&Automation Co.Ltd(300024) and intelligent software in the middle-end market, In the back-end market, the company will provide after-sales operation and maintenance services after the warranty period. 3) Business continued to expand and its performance grew rapidly: from 2017 to 2020, the compound growth rate of the company’s revenue side reached 44.1%, and the growth rate of net profit attributable to the parent company reached 105.9%. The company’s customer structure gradually expanded to tobacco, e-commerce, large-scale retail, medicine, automobile, printing, new energy, aerospace, petrochemical industry, semiconductor and other industries, with an increasingly rich customer structure, Continue to inject new impetus into the company’s revenue and performance.
Industry analysis: it is widely used and has considerable demand. The leader is stable and all boats compete for the best. 1) Driven by both market environment and policy, downstream demand continues to rise. The continuous expansion of the scale of industrial enterprises and social retail industry has given birth to the growing demand for logistics management. However, due to the gradual decline of demographic dividend, China’s labor cost is increasing, and the demand for warehousing logistics automation management in various industries is increasing. At the policy level, in recent years, relevant departments have successively issued a series of policies, repeatedly mentioned to improve the intelligent level of warehousing and logistics equipment, increase the promotion and application of intelligent warehousing and logistics equipment, and support the upgrading and development of warehousing and logistics automation system industry. 2) There is no leader in the Chinese market, and domestic manufacturers are expected to fully enjoy the industry beta. In the global market, the top 10 sales revenue are located in developed countries and regions such as the United States, Europe and Japan. Due to long-term technology accumulation, foreign enterprises have advantages in warehousing and logistics software and hardware technology, product quality, system stability, industry experience and brand awareness. At present, the Chinese market is in a state of full competition and no leading enterprise has been born. The gap between the technical level of Chinese manufacturers and foreign enterprises is gradually narrowing. Moreover, the warehousing and logistics automation system project of Chinese enterprises has the advantages of strong customized service ability, high cost performance and timely service response, and is expected to fully enjoy the industry beta.
Company logic: performance is comparable to international brands, and downstream industries blossom at many points. 1) Downstream industries have been continuously enriched and business layout has blossomed in many points: the company has continued to serve the tobacco industry since 2003, and has successively expanded industries such as medicine, retail, e-commerce, aerospace, new energy, animal husbandry and petrochemical industry. The company has continued to promote its products to leading companies in different industries, reflecting the company’s scarce customization ability. 2) The performance is comparable to that of international brands, benefiting from the acceleration of domestic substitution: the company’s main products are basically at the same level as the products of major international warehousing and logistics automation system providers in key technical indicators, and the products are highly competitive. Due to the high demand for customization of warehousing and logistics system by Chinese enterprises, In addition, some downstream customers prefer to use domestic equipment for product safety, and the company’s business may benefit from the acceleration of domestic substitution in the future. 3) Develop agent operation services and grow together with high-quality customers: the company has successively carried out three phases of agent operation services with vipshop. The company leases the warehouse of the property management company under vipshop, invests in the construction of the software and hardware facilities required to provide agent operation services, and is responsible for its operation, maintenance and maintenance. As an e-commerce platform for clothing sale, the business scale of vipshop is still expanding, The company’s agent operation project revenue is also expected to grow together. 4) Rich technical heritage and continuous R & D innovation: the company has 7 core technicians, all of whom hold the main positions in Lanjian Research Institute. Among them, Mr. Wu Yaohua, chairman of the company, serves as the president of the Institute. Mr. Wu Yaohua has been engaged in the warehousing and logistics automation industry for more than 30 years. By the end of 2020, the company has R & D personnel accounting for 29.47%, The company has certain advantages in talent reserve and technology reserve.
Investment suggestion: the company has been deeply engaged in the field of intelligent logistics for many years and has rich experience in technical reserves and projects. The downstream customer industry of the company continues to expand, and the business layout blossoms at many points. The orders are expected to gradually turn into performance. We expect the company to realize the net profit attributable to the parent company of RMB 90 million, 130 million and 171 million respectively from 2021 to 2023, with a year-on-year increase of 8.4%, 43.4% and 31.1% respectively, The corresponding EPS is 1.25, 1.79 and 2.35 respectively, and the corresponding PE is 25.3x, 17.5x and 13.3x respectively. It is covered for the first time and given a buy rating.
Risk tips: downside risk of gross profit margin, downside risk of newly signed orders, risk of failure to collect accounts receivable on time, risk reduction of agent operation business, risk of delayed or delayed update of public data and information
