Estun Automation

  • Ticker2747
Johnny Yum Chung Man
  • Johnny Yum Chung Man

Estun Automation Co Ltd : 2Q21: Missed expectations on worse-than-expe...

Estun’s 2Q21 net profit declined 35.7% yoy to Rmb30m, missing our and consensus estimates. This is due to a sharp margin decline at its core automation parts business, as the segment was affected by hikes in raw material and transport costs. Going forward, management expects margins to recover, helped by price hikes from the launch of new products. We factor in the lower margins and cut 2021-23 net profit by 25.7%/14.7%/2.6%. Cut target price to Rmb36.80. Maintain BUY.

Johnny Yum Chung Man
  • Johnny Yum Chung Man

Estun Automation (002747 CH) : Smooth integration of cloos allows acce...

Management shared upbeat guidance on its CNC system and motion control/servo system business, as well as the robust order wins ytd by its Cloos brand. Riding on the robust sales momentum, Estun is now targeting to become one of the tier-1 industrial robots brands by 2025. Estun sees limited pressure from supply shortages and cost hikes, and surprisingly managed to raise its ASP to partially pass through the costs. Maintain BUY with a higher target price of Rmb44.60.

Johnny Yum Chung Man
  • Johnny Yum Chung Man
A0M4P7 Han's Laser Tec... (Industrial Goods & Services)
300124 Shenzhen Inovan... (Industrial Goods & Services) ... (+3)

China Industrial Automation : 1Q21 Results wrap: Retaining solid perfo...

Domestic industrial automation names delivered strong 1Q21 results, with growth supported by an ongoing import substitution trend and equipment replacement demand. The outlook for 2021 remains solid with upbeat guidance backed by a solid order backlog. The supply chain is expected to remain tight but leaders with wellmanaged inventory will emerge as winners. Maintain OVERWEIGHT. Top pick: Estun.

A0M4P7 Han's Laser Tec... (Industrial Goods & Services)
300124 Shenzhen Inovan... (Industrial Goods & Services)
2747 Estun Automatio...
Johnny Yum Chung Man
  • Johnny Yum Chung Man

Estun Automation (002747 CH) : 2020 and 1Q21: In-line results, Robust ...

Estun announced in-line 1Q21 earnings with net profit growing 122% yoy to Rmb33m, on the back of a 50% yoy increase in the motion control business, and a 110% increase in robot sales without a significant contribution from Cloos due to shipment delays. Management is now confident about achieving the 10,000-unit shipment target, and expects automation demand to remain robust going forward. Our estimates remain unchanged. Maintain BUY with target price of Rmb39.00.

Johnny Yum Chung Man
  • Johnny Yum Chung Man

Estun Automation (002747 CH) : Lifting our earnings estimates on posit...

Estun recently announced several positive business updates, including: a) the revision of the private placement announced in Jul 20 with more favourable terms; b) the entrance into the construction equipment industry as an industrial robot supplier; and c) the expansion in sales channels. We raise our 2021-22 earnings projections as the positive business updates indicate a smoother-than-expected integration of Cloos. Maintain BUY. Raise target price to Rmb39.00.

Johnny Yum Chung Man
  • Johnny Yum Chung Man

Estun Automation Co Ltd : 2Q21: Missed expectations on worse-than-expe...

Estun’s 2Q21 net profit declined 35.7% yoy to Rmb30m, missing our and consensus estimates. This is due to a sharp margin decline at its core automation parts business, as the segment was affected by hikes in raw material and transport costs. Going forward, management expects margins to recover, helped by price hikes from the launch of new products. We factor in the lower margins and cut 2021-23 net profit by 25.7%/14.7%/2.6%. Cut target price to Rmb36.80. Maintain BUY.

Johnny Yum Chung Man
  • Johnny Yum Chung Man

Estun Automation (002747 CH) : Smooth integration of cloos allows acce...

Management shared upbeat guidance on its CNC system and motion control/servo system business, as well as the robust order wins ytd by its Cloos brand. Riding on the robust sales momentum, Estun is now targeting to become one of the tier-1 industrial robots brands by 2025. Estun sees limited pressure from supply shortages and cost hikes, and surprisingly managed to raise its ASP to partially pass through the costs. Maintain BUY with a higher target price of Rmb44.60.

Johnny Yum Chung Man
  • Johnny Yum Chung Man
A0M4P7 Han's Laser Tec... (Industrial Goods & Services)
300124 Shenzhen Inovan... (Industrial Goods & Services) ... (+3)

China Industrial Automation : 1Q21 Results wrap: Retaining solid perfo...

Domestic industrial automation names delivered strong 1Q21 results, with growth supported by an ongoing import substitution trend and equipment replacement demand. The outlook for 2021 remains solid with upbeat guidance backed by a solid order backlog. The supply chain is expected to remain tight but leaders with wellmanaged inventory will emerge as winners. Maintain OVERWEIGHT. Top pick: Estun.

A0M4P7 Han's Laser Tec... (Industrial Goods & Services)
300124 Shenzhen Inovan... (Industrial Goods & Services)
2747 Estun Automatio...
Johnny Yum Chung Man
  • Johnny Yum Chung Man

Estun Automation (002747 CH) : 2020 and 1Q21: In-line results, Robust ...

Estun announced in-line 1Q21 earnings with net profit growing 122% yoy to Rmb33m, on the back of a 50% yoy increase in the motion control business, and a 110% increase in robot sales without a significant contribution from Cloos due to shipment delays. Management is now confident about achieving the 10,000-unit shipment target, and expects automation demand to remain robust going forward. Our estimates remain unchanged. Maintain BUY with target price of Rmb39.00.

Johnny Yum Chung Man
  • Johnny Yum Chung Man

Estun Automation (002747 CH) : Lifting our earnings estimates on posit...

Estun recently announced several positive business updates, including: a) the revision of the private placement announced in Jul 20 with more favourable terms; b) the entrance into the construction equipment industry as an industrial robot supplier; and c) the expansion in sales channels. We raise our 2021-22 earnings projections as the positive business updates indicate a smoother-than-expected integration of Cloos. Maintain BUY. Raise target price to Rmb39.00.

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