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Investor Presentaiton

China automation-sector peer-valuation comparisons Price Upside/ BBG Ticker Company Rating Current Price (LC) Target Downside 12m TSR Market Cap EPS (LC) (%) (%) (US$, m) P/E (x) P/B (x) ROE (%) EV/EBITDA (x) CAGR (%) 2022E 2023E 2024E 2022E 2023E 2024E 2022E 2023E 2024E 2022E 2023E 2024E 22-24E Service Robot 603486 CH 688169 CH 603666 CH 000651 CH 600690 CH 000333 CH 1810 HK Ecovacs Robotics Co Ltd-A Beijing Roborock Technolog-A Yijiahe Technology Co Ltd-A Gree Electric Appliances I-A Haier Smart Home Co Ltd-A Midea Group Co Ltd-A Xiaomi Corp-Class B Outperform Neutral 69.04 101.70 311.80 321.00 47.3 48.1 5,720 23.3 19.2 13.6 6.0 4.9 3.7 29.5 28.2 31.0 17.3 13.8 9.3 31.0 3.0 3.6 4,228 23.6 23.1 19.4 2.2 2.7 2.4 13.1 12.5 13.2 13.1 15.7 12.8 10.3 Underperform 39.66 21.40 -46.0 -45.7 1,194 N/A 46.3 38.0 3.4 3.2 3.0 -3.9 7.2 8.1 -105.1 36.0 28.8 N/A Outperform 35.15 47.00 33.7 39.4 28,648 8.2 7.4 6.8 2.0 1.8 1.5 24.5 26.0 24.3 4.2 3.8 2.9 9.7 Outperform 22.60 37.00 63.7 66.9 29,829 15.5 13.7 12.1 2.3 2.0 1.8 17.0 17.1 17.4 8.3 6.9 5.8 13.4 Outperform 55.33 91.00 64.5 68.0 56,229 13.2 12.1 11.0 2.7 2.4 Underperform 11.16 9.77 -12.5 -12.5 35,527 29.4 26.0 19.8 1.7 1.6 21 2.1 22.1 21.8 21.2 10.9 9.3 7.9 9.7 1.4 1.8 7.8 8.9 26.8 30.6 19.2 21.8 1691 HK Js Global Lifestyle Co Ltd Underperform 6.92 5.50 -20.5 -20.5 3,081 9.1 7.2 6.6 603195 CH Gongniu Group Co Ltd-A NR 148.20 NR N/A N/A 12,921 28.4 24.1 20.8 88 1.6 1.3 1.1 17.7 20.1 18.0 5.8 3.9 3.1 17.5 7.2 6.1 5.1 25.3 25.2 24.8 20.3 17.2 14.8 16.8 002032 CH Zhejiang Supor Co Ltd -A NR 51.50 NR N/A N/A 5,980 20.1 18.1 16.4 5.1 5.2 4.6 25.1 28.5 28.2 15.4 14.0 12.6 10.8 603355 CH Kingclean Electric Co Ltd-A NR 27.09 NR N/A N/A 2,065 15.1 14.0 12.0 3.9 3.4 2.9 28.3 25.3 24.4 11.1 9.7 8.4 12.0 000921 CH Hisense Home Appliances G-A NR 24.79 NR N/A N/A 4,134 24.4 18.3 15.5 2.9 2.6 002242 CH Joyoung Co Ltd -A NR 16.28 NR N/A N/A 1,767 17.4 16.3 14.2 2.8 3.3 23 2.3 12.4 13.9 15.5 9.5 7.9 6.8 25.7 3.0 16.2 20.3 21.5 16.1 14.6 12.7 10.7 002959 CH Bear Electric Appliance Co-A NR 84.42 NR N/A N/A 1,912 35.4 27.1 23.2 5.7 4.8 4.2 16.0 17.9 18.0 21.6 17.6 15.2 23.5 2148 HK Vesync Co Ltd NR 3.06 NR N/A N/A 498 12.2 9.7 7.6 1.4 1.5 1.3 11.6 15.4 17.5 8.6 6.8 5.2 26.5 300853 CH Hangzhou Shenhao Technolog-A NR 32.16 NR N/A N/A 711 38.2 20.6 15.6 N/A N/A N/A N/A N/A N/A N/A N/A N/A 56.3 Average TIC 20.9 18.9 15.8 3.4 3.1 2.7 17.1 19.1 19.5 5.6 13.9 11.0 19.7 300012 CH 300887 CH 002967 CH 603060 CH 300416 CH Average Construction 603338 CH Centre Testing Intl Group-A Pony Testing International-A Guangzhou Grg Metrology & -A China Testing & Certificat-A Suzhou Sushi Testing Group-A Outperform 19.01 26.10 37.3 37.8 4,630 34.8 27.5 21.9 5.6 4.7 3.9 17.6 Outperform 35.48 51.70 45.7 46.8 1,474 30.7 28.7 20.6 NR 22.66 NR N/A N/A 1,837 51.7 37.2 27.4 NR 11.82 NR N/A N/A 1,252 32.5 25.8 20.7 NR 28.60 NR N/A N/A 1,559 38.9 29.5 22.2 2345 2.9 2.8 2.5 11.5 806 18.6 19.6 22.9 18.5 14.5 26.1 9.8 12.7 14.2 16.0 12.2 22.1 3.5 3.3 3.0 6.7 8.8 10.9 22.2 18.3 14.6 37.3 4.7 4.1 3.5 15.0 16.6 17.8 18.0 14.8 11.9 25.2 5.2 4.4 37.7 29.8 22.6 4.4 3.9 33 3.7 13.9 15.0 16.9 20.4 17.2 13.4 32.3 3.3 13.0 13.8 15.6 19.5 17.0 13.3 28.6 601100 CH 600031 CH 002050 CH 002884 CH 603956 CH Zhejiang Dingli Machinery -A Jiangsu Hengli Hydraulic C-A Sany Heavy Industry Co Ltd-A. Zhejiang Sanhua Intelligen-A Guangdong Lingxiao Pump In-A Wpg Shanghai Smart Water P-A Outperform 49.15 87.10 77.2 78.4 3,602 19.8 17.5 14.1 3.5 3.0 2.6 19.3 18.6 19.7 17.1 12.4 9.3 18.5 Neutral 58.94 53.40 -9.4 -8.0 11,438 32.9 27.7 22.1 6.1 5.3 4.5 21.5 20.4 22.1 27.2 18.9 14.6 22.0 Neutral 16.24 18.10 11.5 12.8 19,947 32.1 21.6 18.4 2.1 2.0 1.8 6.6 9.4 10.2 29.4 19.5 16.2 32.2 Outperform 23.29 36.30 55.9 56.9 12,104 32.5 28.0 22.7 6.5 5.4 4.6 21.4 21.1 22.0 25.3 19.0 15.4 19.7 NR 15.36 NR N/A N/A 804 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A NR 7.98 NR N/A N/A 603 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 3339 HK Lonking Holdings Ltd NR 1.39 NR N/A N/A 785 12.1 8.2 7.0 0.6 0.5 0.5 5.0 6.6 7.4 5.0 4.3 3.9 30.9 000528 CH Guangxi Liugong Machinery-A NR 7.62 NR N/A N/A 2,180 16.3 13.4 11.4 0.9 0.9 0.8 5.9 6.7 7.5 14.0 11.7 11.0 19.9 000157 CH Zoomlion Heavy Industry S-A NR 6.48 NR N/A N/A 7,693 21.2 16.2 12.7 1.0 1.0 0.9 4.6 6.1 7.4 18.2 14.3 12.2 29.3 000425 CH Xcmg Construction Machin-A NR 6.86 NR N/A N/A 10,996 12.4 10.5 9.3 1.3 1.2 1.1 10.5 10.6 11.5 16.6 15.3 14.4 15.3 Average 22.4 17.9 14.7 2.7 2.4 2.1 11.8 12.4 13.5 19.1 14.4 12.1 23.5 *BBG pricing as of May 5, 2023 Source: Bloomberg, Macquarie Research, May 2023 32
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