Summary content
Leading supplier of solder paste printing equipment, layout dispensing, LED packaging, flexible automation and other equipment. The company was founded in 2005, mainly engaged in tin paste printing equipment. In 2021, the company achieved revenue of 797 million yuan, an increase of 33.96% over the same period last year, of which solder paste printing equipment accounted for 81.27% of the revenue. The company started as solder paste printing equipment, entered Apple Inc's supply chain in 2011, and is now a global leader in this field. Based on solder paste printing equipment, based on a number of common underlying technologies, with strong R & D capabilities, the company continues to expand into the rear dispensing, flexible automation equipment, LED packaging equipment and other fields.
The electronic assembly equipment space is broad, the company equipment competition strength is strong. Electronic assembly equipment mainly includes tin paste printing, patch, dispensing, testing and other equipment, which is widely used in consumer electronics, 5G communications, automotive electronics and other fields. According to the statistics of MarketWatch and other institutions, the global SMT market is expected to reach US $9.025 billion by 2030 and 4.8 per cent of CAGR from 2022 to 2030. After years of development, the company's tin paste printing equipment has been in the leading level in the world. Based on the leading tin paste printing equipment, the company expanded into the rear dispensing equipment, and its sales revenue increased from 4.36 million yuan in 2017 to 63.61 million yuan in 2021. In addition, in order to adapt to the updated iterative fast features in areas such as consumer electronics, the company launched flexible automation equipment, 2022H1, which has a revenue growth rate of 838.6%.
Mini/Micro LED opens new demand for solid crystal, and the company is a rising star of LED solid crystal equipment. According to Global info Research data, the market scale of China's solid crystal machine will reach 5.05 billion yuan in 2021. With the acceleration of commercial use such as Mini/Micro LED, customers will put forward higher demand for solid crystal equipment, and the demand for LED solid crystal equipment is expected to open quickly. In LED solid crystal equipment, the company has mastered both Pick&Place and thorn crystal technology routes, and its technical strength is not weaker than that of its international leading peers. In the new round of demand driven by Mini/Micro LED, the company's market share is expected to increase rapidly.
Investment suggestion: the company's net profit from 2022 to 2024 is estimated to be 1.31max 1.95 / 252 million yuan respectively. Considering the comparable company's PE, the company's industry status, product line layout and growth, the company is given a 2023 PE 28.4X, corresponding to the target price of 72.75 yuan. Cover for the first time, giving a "buy" rating.
Risk hints: the risk of lower-than-expected demand growth of end products, the risk of technology and product development and innovation, the risk of new product promotion being less than expected, the risk of fluctuation of raw material prices, and the risk of intensified competition in the industry.