Kuka plans to use 450 million yuan of self-raised funds to invest in the construction of a Vietnamese base with an annual output of 450,000 standard sets of software furniture products.

Zhongtai Securities pointed out that it's time to adapt to market demand, consolidate the leading position of the industry and expand market share. Global software furniture consumption in 2017 was 69.6 billion US dollars, of which China and the United States accounted for 31% and 24%. The United States is the largest overseas market for software furniture consumption. Against the background of the tariff levy on Sino-U.S. Trade, the company's export business has been affected to some extent this year. It is estimated that the company's internal and external sales revenue will have a negative growth in the first three quarters of 2019. The construction of the Vietnam base project will effectively expand the company's production capacity, rapidly increase its supply chain capabilities, practice low-cost operations and product leadership strategies, help the company grasp the trend of foreign trade orders shifting to overseas production capacity under the background of tariffs, increase market share, and consolidate its industry position. Maintain “Buy” rating.