On August 2, Solid high-tech opened the subscription, the listing price was 12 yuan/share, and the price/earnings ratio reached 110.8 times, which received wide attention from the industry.

Revenue profits continue to grow, operating performance showing better growth may be an important reason for this solid high-tech to get a hundredfold price-earnings ratio. From 2020 to 2022, the operating income of Gu High-tech increased from 283 million yuan to 348 million yuan, the compound annual growth rate of revenue reached 12.06%, and the net profit of the mother increased from 28 million yuan to 53 million yuan, with a compound annual growth rate of 2.04%. In the latest reporting period of 2023, Gugao achieved operating income of 0.75 million yuan in Q1, up 6.28% year-on-year, and is expected to achieve a net profit of about 22 million yuan in the first half of 2023, supporting the basic performance of Gugao’s listing this time.

Some institutions are optimistic that in the context of the United States and other countries to increase restrictions on the development of high-end manufacturing in China, domestic high-end equipment has ushered in the historical opportunity of import substitution, motion control as the core parts of high-end equipment, the future will benefit from the development process of high-end equipment localization rate. It is expected that solid high-tech 2023-2025 can achieve a net profit of 0.57, 0.78, 0.96 million yuan, respectively, an increase of 6.83%, 36.16%, 23.26%, the future can grow huge space.

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China’s “Beifu”?

Gu High-tech has a very high reputation in the field of robotics and motion control, because it is one of the few companies that have adhered to the core technology research and development of motion control and intelligent manufacturing for more than 20 years. The so-called motion control system is an important part of automation technology, which mainly realizes the control of the system or subsystem that moves in a controllable way, and the motion control of the equipment has always been the core of production and processing, and is also the technical guarantee for the rise of the manufacturing industry.

For a long time, the main participants of high-performance motion control and servo drive products are foreign manufacturers. For example, Motion controller manufacturers are mainly Delta TauData Systems Inc.(the United States, has been acquired by Omron)ACS Motion Control Ltd.(Israel ACS), Aerotech Inc.(the United States Aerotech) and so on. The servo drive manufacturers are mainly Kollmorgen Corp.(United States Kollmorgen), Israel EImoMotion Control Ltd (Israel ELMO) and so on.

Due to the excellent product performance, solid high-tech with advanced technology and products positioned in the high-end market, in recent years with the international advanced enterprises launched the same stage competition, so this enterprise is also known as “China Befu”, the capital is its standard Omron, ACS, Aerotech, ELMO, Kol Morgan and other international advanced enterprises, As the leader of the first echelon of domestic motion control, it is expected to truly break the pattern of almost monopoly of foreign enterprises for the market in the future.

In the past 20 years, Gu High-tech has gradually formed an autonomous and controllable technology system such as motion control, servo drive, multi-dimensional perception, industrial field network, and industrial software, and integrated the construction of “equipment manufacturing core technology platform”, which has realized an extension in the product system layout. This will help Gugao enlarge the service radius and form a market moat.