Stone Technology: Xiaomi’s ecological chain, a high-quality domestic cleaning robot, enables rapid growth
Key points of investment: High-quality domestic sweeping robot enterprises, Xiaomi ecological chain empowerment + founding team “soft and hard combination”.The company is committed to the production of intelligent cleaning robots, and is the 杭州桑拿网 main supplier of intelligent cleaning robots for the technology giant Xiaomi’s “Mijia”. In the main business revenue of 2018, the Xiaomi “Mijia” brand accounted for 47.21%, own brand “stone”, “small tile” accounted for 48 respectively.50% / 3.03%.The founder team of the company combines software and hardware backgrounds, and the actual controlling person Changjing holds 30 shares.99%, the four major partners are from Baidu, Microsoft and Huawei, directly holding 11% of the shares, transforming the core backbone through the Stone Age indirectly holding 10% of the shares, the management team is fully motivated.In terms of business model, all of the company’s products are produced by entrusted processing, and there is no self-built production base. The company is in a fast-growing stage, and Xiaomi’s dependence has decreased to increase its gross profit margin.The company is currently in the expansion phase, and its products are continuously updated. In September 2016 / September 2017 / March 2018, it launched “Mijia” / “Stone” / “Xiaowa” intelligent cleaning robots.The combined rate of 23% is second only to Cobos.Product sales are mainly online. In 2017, the e-commerce platform’s warehouse entry + online B2C platform warehouse entry + offline distribution model was extended to help the performance continue to grow rapidly.The company achieved operating income in 2016/2017/20181.83/11.19/30.510,000 yuan, CAGR308.19%; net profit attributable to mother-0.1/0.67/3.08 thousand yuan.Xiaomi’s dependence has decreased, and its gross profit margin has increased year by year: the proportion of its own brands in the restructured company has increased rapidly, accounting for nearly 50% of its revenue in 18 years, the gross profit margin of its own brands has surpassed that of the Mijia brand, and the structural improvement has improved the company’s gross profit margin, 2016/2017 / The combined gross profit margin in 2018 was 19.21% / 21.64% / 28.79%. The company’s revenue increased rapidly, and the R & D expense ratio declined, and it raised projects to promote R & D innovation.The company has identified R & D funding, with a R & D expense ratio of 21 in 2016/2017/2018.49% / 9.50% / 3.82% means that the company’s revenue growth has broken through and the R & D expense ratio has declined.The company extends lidar and algorithm technology to the field of intelligent scanning robots. It has a number of core technologies in the fields of LDS lidar, deep learning, algorithm optimization, and motion control modules.The science and technology board’s fund-raising project is mainly a new generation sweeping robot project (7.500 million), commercial clean robot product development project (2.800 million), Stone Zhilian Data Platform Development Project (1.40,000 yuan) to provide financial support, while supplementing working capital (1.300 million). The company chooses a listing standard with an estimated market value of not less than RMB 100,000 and a net profit of positive in the past two years and gradually not less than 5,000 million US dollars. We think it is appropriate to use a comparable company PE estimation method.The company’s service robot technology and model are close to maturity, navigation, algorithms, etc. are in a rapid iterative period, and the downstream still has continuous scalability. The company is in the period of developing new products using core technologies, which is close to the development stage of comparable companies, and should use comparable company PEEstimate method to estimate. Risk reminder: the risk of changes in the cooperative relationship with Xiaomi, the risk of changes in the cooperative relationship with the foundry manufacturer, and the risk of a single company product.