Jinwu Financial News | Haitong International Development Research Report said that in the first three quarters, Sagiteng Juchuang (02498) achieved revenue of 1.135 billion yuan, +91.5% year over year; gross profit of 0.17 billion yuan, +375.4% year on year, gross profit margin 15.0%, +8.93 pcts year on year; net loss to mother of 0.351 billion yuan, down 69% year on year and net profit margin of -31% year on year, +169.49 pcts year on year. Among them, 3Q24 achieved revenue of 0.408 billion yuan, +54.7%/11.4%; gross profit of 0.071 billion yuan, +210.2%/31.7% month-on-month, gross profit margin 17.5%, and 8.75/2.69pcts; net loss to mother of 0.082 billion yuan, 77.4%/-40.2% month-on-month, net profit margin of -20.2%, and month-on-month +117.7/17.37 pcts.
The bank mentioned that the 3Q24 shipment growth rate was slightly weak, but gross margin improved rapidly. According to the bank, although the performance of end-to-end technology has improved significantly on the path to pure vision solutions, the bank believes that the safety value of lidar has not decreased in the long run, and it still has potential for standard installation after reaching a certain level of cost. Furthermore, according to management disclosure, as of 3Q24, the number of partners in the robotics field has exceeded 2,600, and new product development is about to enter mass production. Shipments in the robotics field are expected to exceed 0.1 million units in '25. Considering that the robot industry is still in the introduction stage, it is expected to drive an upward breakthrough in overall gross margin.
The bank expects the company's 2024-26E revenue to be 1.727/3.28/4.6 billion yuan, respectively, and EPS of -1.00/-0.52/0.00 yuan respectively (the original forecast was 2.145/3.7/5.8 billion yuan, EPS -1.05/-0.52/0.18 yuan, respectively). Referring to comparable company estimates, the bank gave the 3x PS unchanged in 2025, corresponding to a target price of HK$23.46 (previous target price: HK$26.78, corresponding to 3 times PS in 2025, a decrease of 12%; HK$1 = rmb0.9301). Maintain an “better than market” rating.
