Estun Automation: Goodwill Impairments Led to Significant Loss

While we are disappointed with Estun’s preliminary loss of CNY 650 million-CNY 760 million for 2024, we maintain our fair value estimate of CNY 11.30 per share, as over half of the loss is attributable to noncash goodwill impairment, which does not affect our discounted cash flow-based valuation. We have revised our net loss estimate to CNY 700 million for 2024 but are retaining our estimates for 2025-28, pending the release of the full results on April 27.