Code CNC: Five-axis Horizontal Milling And Turning Compound Machining Center And Five-axis Horizontal Machining Center Will Become The Main Models, And The Gross Profit Margin Of Future Products Is Expected To Increase

Code CNC: Five-axis horizontal milling and turning compound machining center and five-axis horizontal machining center will become the main models, and the gross profit margin of future products is expected to increase

Code CNC has a horizontal processing equipment with a price of 3.5 million and a five-axis function. This type of equipment has just entered the stage of mass production and has begun production.

In today's market environment, the return on investment of five-axis machining equipment , one of the most urgent practical issues that end factory users need to figure out is how long it will take them to recover the original investment cost in actual operation and use.

Five-axis horizontal equipment becomes the main force

Product positioning is clear

Code CNC disclosed the investor relations activity record on June 6. In that record, it was clearly stated that the five-axis horizontal milling and turning compound machining center will become another main model of the company. At the same time, the five-axis horizontal machining center will also become another main model of the company. These two models will form a complementary relationship with the existing vertical product line, thus covering a more complete processing scenario.

Market demand driven

In new energy vehicles, the return on investment of five-axis processing equipment in the aerospace field, and in high-end manufacturing industries such as the military industry, the demand for multi-axis linkage processing is continuing to rise.

The horizontal structure can reduce the number of clamping times and make the efficiency higher when facing the complex turning process. End users' willingness to replace equipment has shown a very obvious trend of strengthening in the past two years.

Mass production has just started

Timeline and Progress

In the first half of this year, the company officially launched the mass production of five-axis horizontal milling and turning compound machining centers. The product has moved from the R&D verification stage to the batch delivery stage. This change means that in the following months, complete machines will be shipped one after another. The entire business has entered a period of large-scale revenue recognition.

High technical threshold

The technical difficulty of this type of equipment is relatively high, and the production process is also relatively complex. The supply cycle of some core components can be as long as several months. Therefore, in the short term, the speed of its production capacity release will be restricted by the supply chain. It will not achieve full production and full sales from the beginning. It is necessary to allow some time for production to ramp up.

Shenyang base increases production capacity

New production base

The company has established a production base in Shenyang specifically for the production of five-axis horizontal machining centers. The purpose of this base is mainly to strengthen the production capacity of horizontal products. Shenyang is close to the high-end equipment industry cluster in Northeast China, which makes it easier to accept orders from regional customers nearby, thereby shortening the logistics distance and after-sales response distance.

Expanded production capacity flexibility

After the new base is officially put into production, the company can expand the scale of production without increasing the research and development costs of a single piece of equipment again, leaving sufficient production capacity space for subsequent substantial growth in orders, reducing risks arising from the need for rapid delivery, and avoiding the embarrassing situation of being unable to deliver orders to customers on time due to insufficient production capacity for those orders that have already been placed.

Average price threshold of 3.5 million

Pricing logic

Currently, the average price of a five-axis horizontal milling and turning machining center is about 3.5 million yuan. Compared with ordinary three-axis equipment, the price premium is very obvious. The reason for this phenomenon is mainly due to the multi-axis linkage CNC system, the combined turning and milling function, and the increased cost of some materials and processing caused by the requirement to maintain higher precision.

customer groups

Purchasers in this price range are mainly manufacturers of aerospace parts, supporting companies in the military industry, and suppliers of high-end automotive parts. The amount of a single transaction is usually relatively large, and the procurement decision-making cycle is often relatively long. But when it comes to the return on investment of five-axis machining equipment , once it enters this supply system, subsequent repurchase orders and additional orders will be relatively stable.

Gross profit margin is expected to rise

Cost-side optimization

Because the number of orders for products is increasing rapidly, in terms of procurement, relying on the advantages of large-volume sales can clearly reduce the cost of each part. The ability to negotiate prices for important things such as spindles, CNC systems, and precision guide rails is getting stronger and stronger, so the cost of building one unit will slowly become lower.

Short and medium term trends

The company determines that the gross profit margin of its products will be further improved in the short to medium term. The core logic is that the R&D expenses and engineering expenses that have been fixed in the past will be diluted by more orders in the future. As the scale effect gradually becomes apparent, the company's net profit margin operation space has also been opened up.

What is the return on investment?

Equipment usage cost

The purchase of this equipment requires an investment of 3.5 million yuan. This equipment is a five-axis horizontal type. If the effective working hours per year are approximately 4,000 hours, the annual depreciation cost is approximately between 500,000 and 600,000 yuan. If the expenses for cutting tools, consumables, and daily maintenance are included, the annual comprehensive operating cost can be controlled within 800,000 yuan.

Capacity replacement value

After replacing the original three to four three-axis machines with this equipment, the total working time has been shortened, the number of people employed has been reduced, and the scrap rate has been reduced. It only takes two to three years for end users to make back the money they paid for the equipment. The equipment manufacturers themselves have continued to increase their profit margins due to the increase in order volume.

Do you think a multi-axis machine tool worth 3.5 million yuan can achieve a return on investment within two years in the terminal factory? Is this feasible in reality? We welcome you to express your own judgments and opinions in the comment area. If you think this content has certain practical value, you can like it and forward it to your friends who are interested in the field of high-end equipment manufacturing.