Estun Automation Earnings: Cut Fair Value Estimate on Disappointing Growth and Margins

As of December 2023, Estun Automation is the largest domestic industrial robot manufacturer and ranks second by shipment in China, a market that used to be dominated by foreign companies. As a late mover, Estun benefited from the exponential growth of emerging industries such as the photovoltaic and lithium-ion battery industries. It is one of the largest industrial robot suppliers to the photovoltaic industry, with a leading market share in photovoltaic typesetting. In addition, its robots have landed in the factories of top lithium-ion battery companies such as BYD and CATL. However, both industries are currently facing heavy overcapacity. This will weigh on Estun's shipment growth in the near term.