Huatai Securities: sanitation robot opens up growth space.

Huatai Securities stated that at present, the sanitation industry is still a labor-intensive industry. By 2024, the number of employees in Yuhetian will exceed 90,000, and the number of employees in Qiaoyin Stock, Fulongma will both exceed 50,000. The main companies such as Yuhetian, Qiaoyin Stock, Fulongma, and Jinglu Environmental have labor costs accounting for more than 60% of the total costs. In recent years, major companies in the industry have been continuously deploying in the sanitation robot field, promoting the digital transformation of urban services. At the same time, many local governments have introduced unmanned sanitation policies. The essence of smart sanitation model lies in scene collaboration and human-machine integration. Yuhetian, Qiaoyin Stock, and other companies have rich application scenarios for urban services. We believe that the application and iteration process of sanitation robots is expected to accelerate, and we are optimistic about the opportunities for digital transformation of urban services and performance growth brought by the application of sanitation robots.