MOONS’(SH:603728) Soochow Securities·2024-05-04 08:05Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's performance is under short-term pressure, but the development of robotic dexterous hands is ongoing [1] - Revenue for 2023 and Q1 2024 showed declines of 14% and 6% year-on-year, respectively, with net profit down 43% and 80% [3] - The company is focusing on high-value emerging sectors while traditional business areas are expected to recover [4] Financial Performance Summary - Total revenue for 2022 was 2,960 million, with a forecasted decline to 2,543 million in 2023, followed by a recovery to 2,806 million in 2024 [2] - The net profit attributable to shareholders decreased from 247.24 million in 2022 to 140.44 million in 2023, with an expected increase to 184.51 million in 2024 [2] - The latest diluted EPS is projected to be 0.33 in 2023, increasing to 0.44 in 2024 [2] Business Segment Insights - The company’s motor and drive system revenue was 2.07 billion in 2023, down 11% year-on-year, with specific declines in stepper motors due to market pressures [3] - Brushless motor revenue was 170 million, with hollow cup products seeing over 80% growth, driven by demand in the medical equipment sector [3] - The servo system revenue increased by 16%, attributed to new customer acquisitions in emerging industries such as photovoltaics and robotics [3] Emerging Opportunities - The hollow cup motor's performance is competitive with leading international brands, and the company is well-positioned to expand in the humanoid robot market [4] - The company is expected to see significant growth in humanoid robot applications, which could lead to high earnings elasticity [4] Profit Forecast and Valuation - The forecast for net profit attributable to shareholders has been adjusted downwards for 2024 and 2025, with expected profits of 185 million and 236 million, respectively [4] - The projected P/E ratios for 2024 and 2025 are 128 and 100, respectively, reflecting the company's valuation in light of its growth potential [4]