Humanoid robots, the heat continues.
On July 4, the 2024 World Artificial Intelligence Conference (WAIC) opened, and world-renowned manufacturers such as Tesla, Huawei, Baidu, Alibaba, and Tencent came to participate in the exhibition, showcasing cutting-edge AI technologies such as humanoid robots, virtual and real fusion, autonomous driving, drones, and brain-computer interfaces.
Today's AI technology is developing rapidly and has gradually penetrated into our lives, such as smart voice assistants, smart homes, smartphones, autonomous driving, etc. As Robin Li, chairman of Baidu, said at WAIC 2024, "Two years is actually like a world away, and it feels like the whole world has changed, and artificial intelligence can be said to have subverted the perception of the vast majority of people." ”
Under the promotion of overseas technology giants such as Tesla, NVIDIA, and Open AI, the time point for the commercialization of humanoid robots has accelerated, and the popularity of the industry has been increasing.
Humanoid robots are a new and huge blue ocean market, the future of the stars and the sea.
According to data, the global humanoid robot market size is expected to exceed $2 billion in 2026, and the global market size is expected to exceed $20 billion by 2030, with a compound annual growth rate of 77.83%, and the market size of Chinese humanoid robots will reach $5 billion in 2030.
For example, Sanhua Intelligent Control, Tuopu Group, Best, HCFA Technology, Wuzhou Xinchun, Zhongda De, Shuanghuan Transmission, etc., have all benefited from the performance elasticity brought by the release of demand in the humanoid robot industry.
All in all, you may not recognize the future of humanoid robots, but you can't deny that this is a story of a sea of stars, and new investment opportunities will continue to emerge in it.
For Tesla's humanoid robot, if you want to realize the complex movement of joints, the core component that cannot be separated is the lead screw.
The lead screw has a wide range of uses in the linear motion function and has high technical barriers, so the lead screw is the most valuable link in the hardware of the humanoid robot industry chain.
In the lead screw, the planetary roller screw is the product with the largest value, the highest technical barriers, and high growth potential in the market, and domestic companies with the ability to conduct research and development are expected to seize the opportunity in this track.
At present, domestic manufacturers are actively developing and expanding the production of planetary roller screws to accelerate the breakthrough from 0 to 1, such as Hengli Hydraulics, Beite Technology, Best, Wuzhou Xinchun, etc.
Among them, Best is an emerging star in China, as a manufacturer of precision parts and intelligent equipment, forward-looking layout of future industries.
The development path of Best is somewhat similar to that of Tuopu Group, Sanhua Intelligent Control and Yinlun Co., Ltd., the company started with tooling and fixture business, and then extended to the field of turbocharger parts.
Since 2022, Best has begun to transform into new energy to create a second growth curve. In 2023, the company's auto parts revenue will account for 89.58%, and now the company's new energy auto parts have covered three technical routes: pure electric, hydrogen energy, and hybrid power.
Benefiting from the release of production capacity of fund-raising projects and the layout of new energy auto parts business, Best's revenue maintained rapid growth, and its net profit continued to break through a new high.
In 2023, Best will achieve revenue of 1.343 billion yuan, an increase of 22.42% year-on-year; The net profit attributable to the parent company was 264 million yuan, an increase of 15.13% year-on-year.
Although the volume of Best is not very large, the company's high profitability is very impressive.
In recent years, Best's gross profit margin has been stable at about 35% all year round, and the net profit margin is as high as about 20%, which is significantly higher than that of comparable companies in the same industry such as Tuopu Group, Kehua Holdings, and BYD.
Such data is not easy for manufacturing companies, even compared with consumer leaders such as Tongrentang, Dong'e Ejiao, and Gree.
In addition, the quality of Best's cash flow is also excellent.
The current ratio and quick ratio are two key financial indicators to assess a company's short-term solvency.
Current ratio = current assets / current liabilities, the higher the current ratio, the stronger the company's solvency, the generally reasonable ratio is 2.
Quick Ratio = (Liquid Assets - Inventories) / Current Liabilities, the Quick Ratio remains normal at around 1.
In recent years, Best's current ratio and quick ratio have minimum values of 2.7 and 2.03, respectively, which is enough to show that the company can fully cover the repayment of short-term liabilities.
Net Present Ratio = Net Cash Flow from Operating Activities/Net Profit
The net present ratio is a core measure of a company's "true" profitability. Generally speaking, companies with a net present ratio of more than 1 are very good.
In the past five years, Best's net present ratio is greater than 1, which shows that the company's products are often in short supply, has a high industry status, has strong bargaining power for upstream and downstream in the entire industrial chain, and can try to keep cash in their own hands.
The core logic behind Best's outstanding report card is that it is driven by the two new businesses of new energy and industrial machine tools.
First, the new energy auto parts business
Best's new energy business is mainly engaged in the lightweight structure of new energy vehicles, and automobile lightweight is an important direction for the transformation and upgrading of the industry.
Best has successfully entered Tesla's supply chain through mergers and acquisitions, and has established close cooperative relations with well-known enterprises such as Huawei Automobile, General Motors, and Dongfeng Motor.
For Best, this is a business from 0 to 1 that has developed in recent years. Benefiting from the launch of new production capacity, this segment of the business is expected to contribute a major increase in the company's future revenue.
Second, industrial machine tool business (humanoid robots)
Best's planning and layout of lead screws and guide rails is an extension and breakthrough in the original business, and it has relatively mature conditions and advantages:
1. Have a customer base: Best started with machine tool fixture business, accumulated a large number of machine tool customers, cut into the field of machine tool ball screws, and has a certain customer reuse.
2. Strong machining ability and self-verification internally: As a machining enterprise, Best has hundreds of machine tools, and ball screw products can be produced and used by themselves, accelerating iterative research and development.
3. Rapid progress in sample delivery: At present, Best's first set of ball screws and guide rail products have been successfully rolled off the production line and sent samples, and it is expected to usher in batch orders in 2024.
Best has set up a wholly-owned subsidiary, Yuhua Precision Machinery, with a total investment of 1.2 billion yuan, a planned full output value of 1.5 billion yuan, and the introduction of about 300 sets of imported equipment. At present, the core products have been sent by customers, which is expected to open up new growth poles.
Finally, to sum up, Best is a double leader in auto parts and lead screws, although the volume is not large, but the product has excellent technical strength and scarcity advantages. At the same time, with the increasing demand for humanoid robots and new energy vehicles, the company, as a leader, is expected to give priority to the dividends of industry growth.