The first wave of "smart factory manufacturing" has arrived! On the first day, it surged by 300%

On May 12th, Ningxia Juneng Robotics Co., Ltd. (hereinafter referred to as "Juneng Co., Ltd.") officially went public on the Beijing Stock Exchange, becoming the first listed enterprise in Ningxia after the comprehensive registration system reform, and also the first stock of "intelligent factory manufacturing" on the Beijing Stock Exchange.

According to data, Juneng Co., Ltd. was established in June 2008 as a supplier of integrated intelligent manufacturing solutions with robots and related intelligent technologies as the core. We are committed to building automated, unmanned, and intelligent chemical plants for our customers, and aim to become a "factory for manufacturing intelligent factories".

Juneng Co., Ltd. has been awarded multiple titles such as National High tech Enterprise, National Green Factory, and National Key Specialized and New "Little Giant" Enterprise. It is a leading enterprise in the field of intelligent manufacturing solutions in China. In April 2022, Juneng Co., Ltd. was promoted to the innovation layer of the "New Third Board". In September of the same year, it submitted an IPO application to the Beijing Stock Exchange and was accepted. The application took less than 7 months to register, breaking the record for the shortest tutoring period for enterprises in Ningxia.

Many honors have made Juneng Shares highly sought after in the secondary market. After opening today, the stock price has risen all the way, with a rise of up to 300%. As of the close, it has risen by 227.27%, with a stock price of 18.00 yuan and a total market value of 1.323 billion yuan.

Continued growth in revenue and profit

According to the prospectus, from 2020 to 2022, Juneng Shares achieved operating revenue of 152 million yuan, 209 million yuan, and 274 million yuan, respectively, with a compound growth rate of 34.24%; Realized a net profit deduction of 11.9288 million yuan, 21.0021 million yuan, and 26.4131 million yuan, with a compound growth rate of 48.80%.

In terms of gross profit margin, Juneng Group's gross profit margin in 2022 was 28.34%, a significant decrease of 11.84 percentage points compared to 40.18% in 2021. Factors such as the rampant epidemic and rising raw material prices in 2022 have led to a wave of price increases in the robotics industry, driving up costs.

In terms of research and development, in 2021 and 2022, the R&D expenses of Juneng Group were 22.31 million yuan and 35.6 million yuan, respectively, a year-on-year increase of nearly 60%. The proportion of revenue in that year also increased from 10.66% to 12.97%. As of the end of 2022, Juneng Group had 187 patents and 72 invention patents, respectively.

Nowadays, Juneng Co., Ltd. has developed multiple core technologies, including truss robot design/manufacturing/installation technology, visual application technology in the automation field, robot automatic polishing and deburring technology, and has differentiated competitive advantages among companies in the same industry.

By the end of 2022, the net cash flow from Juneng's operating activities was 20.915 million yuan, a decrease of 50.74% compared with the same period in 2021, mainly due to the impact of the COVID-19, and the delay in payment collection of some customers, which will ease when the epidemic is fully liberalized.

It is worth noting that Juneng Group seems to be facing significant debt repayment pressure. From 2019 to 2022, the asset liability ratios of Juneng Robotics were 79.45%, 76.40%, 71.56%, and 57.25%, respectively. Juneng Group previously stated that the company's asset liability ratio is relatively high, mainly due to the high demand for working capital in its industry.

Deeply cultivate the field of intelligent manufacturing for new energy vehicles

Juneng Co., Ltd. is one of the few domestic high-end industrial robot solutions providers on the market. Its core business is robot automation production lines, accounting for over 90% of revenue. Its products are widely used in high-end manufacturing industries such as automotive parts, engineering machinery, aerospace, military, and rail transit.

According to the prospectus, Juneng Co., Ltd. has delivered over 1500 automated production lines to its clients, serving industry benchmark enterprises such as Shaanxi Hande Axle, Shaanxi Faste Group, BYD, Dongfeng Honda, GAC, FAW, Guangdong Hongtu, Wencan Co., Ltd., Longji Machinery, Jingjian Technology, Kehua Holdings, Tianrun Industry, Weifu High tech, Xiangdian Co., Ltd.

Data shows that in 2022, the sales of industrial robots in China exceeded 300000 units, accounting for over 50% of global sales. The increase in demand mainly comes from the fields of new energy vehicles, photovoltaics, lithium-ion batteries, and semiconductors. Especially, the development trend of new energy vehicles continues to improve, and the market production and sales are thriving. New energy vehicle companies represented by BYD are accelerating production expansion, while vigorously driving the market demand for automation.

The automotive industry has always been a deeply cultivated field for Juneng Group, and the vast majority of sales revenue comes from it. Benefiting from the continuous improvement of the new energy vehicle landscape, Juneng Group's sales revenue in the new energy vehicle field exceeded the full year of 2021 by more than four times in the first half of 2022, achieving rapid growth. As of October 31, 2022, the company's total order amount in the new energy vehicle field reached 99.204 million yuan, accounting for 47%.

In 2023, the demand for new energy vehicles and emerging industries will continue to be strong, and the automation demand for new energy vehicle component manufacturing will continue to be driven. At the same time, the innovation of production technology will increase the investment of automotive component enterprises in robot automation production lines, bringing new growth opportunities for the development of Juneng Co., Ltd.