ESTUN AUTOMATION(002747) Ubs Securities·2025-06-05 05:45Investment Rating - The report assigns a 12-month rating of "Sell" for Estun Automation with a price target of Rmb10.30, while the current price is Rmb19.38 [4][23]. Core Insights - Estun Automation has set net income targets of Rmb100 million, Rmb120 million, and Rmb140 million for the years 2025, 2026, and 2027 respectively, which may bolster investor confidence regarding its recovery from previous net losses [3]. - The company is planning an H-share listing as part of its globalization strategy and to enhance business development [2][3]. Financial Metrics - The company’s market capitalization is Rmb16.9 billion (approximately US$2.34 billion) with 870 million shares outstanding [4]. - Revenue projections show growth from Rmb4.918 billion in 2024E to Rmb8.108 billion by 2028E [6]. - Net earnings are expected to improve from Rmb8 million in 2024E to Rmb332 million by 2028E [6]. - The average daily trading volume is approximately 28,889 thousand shares, with an average daily value of Rmb626.3 million [4]. Profitability and Valuation - The EBIT margin is projected to increase from 1.8% in 2024E to 6.0% by 2028E, indicating improving profitability [6]. - The company’s net debt to EBITDA ratio is forecasted to be 10.4x in 2024E, suggesting a high level of leverage [4]. - The P/E ratio is expected to decrease from a non-measurable (NM) status in 2024E to 50.8x by 2028E [6]. Company Overview - Estun Automation, founded in 1993, specializes in CNC systems, AC servos, industrial robots, and intelligent manufacturing, positioning itself as a leading domestic manufacturer in high-end intelligent equipment [8].