The company is the model platform of precision scientific instruments in Anhui Province. The Wanyi science and technology business plate is offensive and defensive, benefiting from the high-profile demeanor of new energy and the domestic alternative leak detection instruments and laboratory analytical instruments as the "spear", and the environmental monitoring that provides stable support as the "shield". The former elite R & D team escorted the government to support the independent controllable policy of high-end instruments, and the company is expected to write a new chapter of value discovery at the time of the arrival of the tide of localization of scientific instruments.
The layout effect of the company's high-end instruments has been shown, and there is a huge space for follow-up growth. 1) Industrial leak detection plate: the industrial leak detector is used in the fields of power batteries and semiconductors, and the domestic market space is about 45-6 billion. In recent years, the company has maintained a growth rate of more than 30%, and the company is in a leading position in domestic brands. It is the core supplier in the industrial leak detection link, such as Ningde era, BYD and Kodali. With mature products and policy support, it is expected to maintain a high growth of more than 50% in the future. 2) Chromatography and mass spectrometry plate: the space in the field of laboratory instruments represented by mass spectrum, chromatography and spectrum is the largest, and the super leading company is expected to be born in the future. The company's current ultra-high liquid chromatography has been introduced to the market (obtaining an order from the Chinese Academy of Sciences). Competing for more than 5 billion of the market space, the embryonic form of industry leaders has emerged, and high growth is expected to be achieved under a low base in recent years.
The environmental monitoring plate continues to provide stable support. At present, the scale of China's eco-environmental monitoring market has reached 54 billion yuan, and although the growth rate of the industry is not as fast as that of the 13th five-year Plan, it has maintained a steady increase in single digits in recent years. The company's related products are also at the forefront of the industry, maintaining a growth rate of about 20% over the past three years. With the continuous sinking of the national control point to the provincial control point in the field of atmosphere and water, the refinement of the assessment drives the market scale to maintain a high level, and the company continues to benefit as a leader in the field of environmental monitoring.
Location + R & D assets is the core competitive advantage. The bottom assets of the company's R & D are of high quality, with the master's degree of the University of Science and Technology of China as the team, the number of R & D personnel (400 +) and the rate of R & D expenses are in the forefront of the industry. At the same time, the company is located in Hefei, the capital of Anhui Province. Anhui Province is one of the provinces with the greatest policy support for the development of the scientific instrument industry in China, including but not limited to the planning of instrument parks, the strong push documents of domestic instruments, etc., as an important territorial company, the company is expected to continue to benefit in the future.
Investment advice: for the first time to cover the "strong push" rating, 2023 target price 34.52 yuan. We expect the company's net profit from 2022 to 2024 to be 0.78,1.20 and 180 million yuan respectively, corresponding to the PE of 38-24-16. We use the segment valuation method to divide the company's business into traditional environmental monitoring instruments and high-end scientific instruments. In the environmental protection monitoring instrument sector, we select the company's main competitors, Juguang Technology, Xue Dilong and Hexin Instruments, as comparable companies to give the 2023 target PE 20 times (focusing Technology also has high-end scientific instrument business, so it gives a certain discount); in the high-end scientific instrument sector, we select Dingyang Technology and Puyuan Precision Power as comparable companies to give the 2023 target PE 50 times. Under the assumption that the proportion of net profit of each sector is the same as gross profit, give the company a target price of 34.52 yuan in 2023.
Risk hints: domestic substitution is less than expected, risk of R & D failure, risk of industrialization failure, intensified competition in the industry, less than expected policy promotion, and greater dependence on government subsidies and tax incentives.
