Veteran electronic vacuum device manufacturers have a variety of downstream application scenarios. Founded in 2000, the company is a high-tech enterprise specializing in the research, development, production and sales of electronic vacuum devices. The company provides ceramic high voltage DC contactors, ceramic high voltage vacuum relays, vacuum AC contactors and other 7 major products, covering relays, circuit switches, capacitors and electronic tubes four categories of electronic components. The products are widely used in new energy vehicles and charging facilities, aerospace and military industry, semiconductor equipment manufacturing, photovoltaic wind energy and energy storage, traditional energy, security inspection, irradiation and other downstream applications.
Master the core technology and have sufficient patent reserves. As of September 2021, the company has formed 31 invention patents and 71 utility model patents. Some of the main parameters of the company's subdivided products have reached the advanced technical level of the industry.
The high prosperity of new energy vehicles / semiconductor equipment / aerospace military industry has led to the growth of company demand. 1) New energy vehicles: the company's ceramic high-voltage DC contactors are the core modules of batteries and circuit systems in new energy vehicles and charging facilities. it is an early manufacturer to realize the industrialization of ceramic high-voltage DC contactors in China.
According to the prospectus, the company accounts for about 10.28% 19.58% of the market share of high-voltage DC contactors in domestic new energy vehicles and charging facilities in 2020, and is one of the major market participants, including Ningde Times, Huichuan Technology, GIGAVAC and so on. Benefiting from the high magnificence of new energy vehicles and their supporting fields, the company's ceramic HVDC contactors and contact groups in related fields are expected to further increase market share and boost revenue growth.
2) Semiconductor equipment: ceramic vacuum capacitors and ceramic high voltage vacuum relays produced by the company are important electronic components of semiconductor manufacturing equipment, including etching machines, PECVD and other thin film deposition equipment, cleaning equipment. In the past, due to the low permeability and small market space of domestic semiconductor equipment, there were few suppliers of electronic components of domestic semiconductor equipment, and the proportion of electronic vacuum devices used in the field of semiconductor equipment was not high. The performance of the company's vacuum capacitor products is basically the same as that of the main foreign competitors, and the production cost is low. Benefiting from the global core shortage and production expansion and the replacement of domestic semiconductor equipment for two-factor drive, domestic electronic vacuum device manufacturers with equivalent strength to foreign electronic component manufacturers will usher in new opportunities.
3) Aerospace military industry: the ceramic high voltage vacuum relays and ceramic vacuum capacitors produced by the company apply aerospace power control system, aerospace and military communication system, which are the basic core electronic components of power control and communication system. The company is a domestic military high-voltage vacuum relay supplier that entered the market earlier. At present, ceramic high-voltage vacuum relay and other products have been recognized by customers in aerospace and military fields, occupying a certain market share. Is one of the main suppliers of downstream customers.
Investment rating: we expect the company's annual revenue to reach 683 million yuan in 2021-22-23, and the parent net profit to reach 0.66 hundred and eighty million yuan. Considering the company's business structure, we select Hongfa shares / Guoguang Electric / Aerospace Appliances / Baoguang shares / Ziguang Guowei as the target company. According to Wind consensus expectations, the current price of the bid company corresponds to an average PEG of 1.14 times in 2021-2023. The target market value of PEG is 8.9 billion yuan, corresponding to the target price of 93.25 yuan. Compared with the closing price of 79.99 yuan on September 13, there is 17% room for the first time to cover the "overweight" rating.
Risk hints: intensified trade frictions, less-than-expected technological innovation, lower-than-expected expansion of downstream areas, intensified market competition, intensified epidemic situation, and short-term stock price volatility risk.