EB SECURITIES: Global collaboration with Siasun Robot&Automation leading manufacturers to accelerate the commercialization of embodied intelligence. They have initiated a "buy" rating for DOBOT (02432).

EB SECURITIES released a research report stating that DOBOT (02432) is a leading global provider of collaborative Siasun Robot&Automation and embodied intelligent solutions. Optimistic about DOBOT: 1) The leading position in the global collaborative Siasun Robot&Automation, with commercialization capabilities expected to be continuously validated; 2) Leading global full-stack self-developed technology barriers, expected to lay the foundation for the company's future development and cost reduction; 3) Significant effectiveness of globalization layout, benefiting from the manufacturing industry transfer dividends and aging population background; 4) Actively entering the field of embodied intelligence & humanoid Siasun Robot&Automation, opening up long-term growth space for the company. First coverage, giving the company a "Buy" rating. EB SECURITIES key points are as follows: Global leading collaborative Siasun Robot&Automation, significant reduction in net profit in 2024. DOBOT is a global leader in collaborative Siasun Robot&Automation and embodied intelligent solutions provider. In 2023, it ranked second in global collaborative Siasun Robot&Automation shipments and first in China with a market share of 13%. The company has cumulatively shipped over 80,000 units, covering more than 15 industries including industrial manufacturing, medical health, and commercial services, serving over 80 of the Fortune Global 500 companies such as BYD Company Limited and Foxconn. In 2024, the company accelerated its global layout and achieved annual revenue of 374 million yuan, a year-on-year growth of 30.3%; adjusted net loss of 36.5 million yuan, a significant decrease of 55.4% year-on-year, and continued optimization of operating efficiency. The collaborative Siasun Robot&Automation industry is welcoming a market opportunity of hundreds of billions driven by "AI + flexible manufacturing". Compared with traditional industrial Siasun Robot&Automation, collaborative Siasun Robot&Automation has significant advantages in safety, flexibility, and scene adaptability, and AI technology further amplifies the differentiation between the two: Industrial Siasun Robot&Automation typically operates in a structured environment, relying on pre-programmed fixed trajectories and rigid control logic, making it difficult for closed-loop systems to respond to dynamic changes in real-time; while collaborative Siasun Robot&Automation naturally emphasizes human-machine interaction and environmental feedback mechanisms, its force control sensors, visual recognition, and motion planning constitute a closed-loop system that provides a natural foundation for AI algorithms such as reinforced learning and imitation learning. From the industrial chain perspective, the domestication rate of core components such as reducers and servo systems in the upstream is rapidly increasing, with a CR5 concentration of 46.3% in the middle market. Currently, industrial scenario demand is still the mainstream in the downstream, but Zhishu Consulting predicts that the demand growth rate in emerging scenarios such as commercial, medical, and scientific research education may be faster. According to Zhishu Consulting's forecast, the global collaborative Siasun Robot&Automation market size will reach 5 billion US dollars in 2028, with an expected compound annual growth rate of 37% from 2023 to 2028; while humanoid Siasun Robot&Automation as an emerging direction, the High-tech Siasun Robot&Automation Industry Research Institute predicts that by 2030, global humanoid Siasun Robot&Automation market sales will reach nearly 340,000 units, and the market size will exceed 64 billion yuan, becoming a key infrastructure of the Industry 4.0 era. DOBOT's core competitiveness lies in technology + capacity + global ecological + diversified scenario experience. 1) In terms of technology, the company's core technology covers Siasun Robot&Automation controllers, servo motors, AI algorithms, and the domestication rate of core components reaching 100%; the AI multimodal interaction platform X-Trainer has compressed the training time for new tasks from 72 hours to 4 hours, improving skill learning efficiency by 18 times. 2) In terms of products, the company covers all categories of six-axis, four-axis, compound Siasun Robot&Automation and humanoid Siasun Robot&Automation, with the humanoid Siasun Robot&Automation Dobot Atom released by 25M3 starting at 199,000 yuan, expected to enter mass production by mid-2025. 3) In terms of capacity layout, the annual production capacity of the Rizhao production base is 100,000 units, improving the repetitive positioning accuracy of Siasun Robot&Automation to an industry-leading 0.02mm, with a product unpacking pass rate of >99.5%, expected to support the company's rapid expansion in emerging markets such as Southeast Asia and Mexico. 4) In terms of customers, the presence of over 80 Fortune Global 500 customers indicates the quality of the company's products and services; 5) In terms of scenarios, the company has rich experience in industrial scenarios and is accelerating the expansion of service capabilities to fields such as medical, commercial, and education, gradually accumulating cross-domain technical integration and scenario innovation capabilities. Profit forecast, valuation, and rating: Overall, positive about DOBOT: 1) Leading position in the global collaborative Siasun Robot&Automation, with commercialization capabilities expected to be continuously validated; 2) Leading global full-stack self-developed technology barriers, expected to lay the foundation for the company's future development and cost reduction; 3) Significant effectiveness of globalization layout, benefiting from the manufacturing industry transfer dividends and aging population background; 4) Actively entering the field of embodied intelligence & humanoid Siasun Robot&Automation, opening up long-term growth space for the company. It is estimated that the company's revenue in 2025-2027 will be 5.0/6.7/8.9 billion yuan respectively, with corresponding year-on-year growth rates of 34%/33%/33%, and corresponding revenue per share of 1.24/1.66/2.20 yuan. Considering relative valuation, the current stock price corresponds to 25-26 PS in '43/32x, with estimated PS higher than the average of comparable companies, and the reasonable price range based on absolute valuation is between 48.50-98.77 Hong Kong dollars. First coverage, with a "Buy" rating for the company. Risk warning: Downstream market demand lower than expected, intensified industry competition, risk of tariff policy changes, global expansion lower than expected, risk of humanoid Siasun Robot&Automation technological iteration lower than expected, risk of price fluctuations for new stocks.