PCB is committed to the high-end product structure, and the strategy extends to solutions and ceramic substrates.
Since its inception, the company has been working in the field of printed circuit boards. After years of development, the current products include multilayer boards, high-density interconnection HDI, high-frequency high-speed boards, flexible circuit boards, rigid-flex boards, metal substrates, thick copper plates, and so on. In 2018, the company acquired Jun Tian Hengxun, which made it have the strength to provide more comprehensive and systematic services on the basis of the steady growth of PCB production capacity. In the face of some downstream customers whose design and coordination capabilities are difficult to match the module, the company can better realize the compound value-added of "board + components + solutions" and enhance customer stickiness and market competitiveness.
Automotive high-power PCB layout industry leader. In recent years, the company has focused on the layout of intelligent connection solutions and integrated solutions for new energy vehicles, which can help customers to achieve high integration, structure and modularization of the three power systems. At the same time, through the analysis and solution of the failure of electrical control and power management, Juntian Hengxun has a deep grasp of the nature of components and circuits, and the combination of Juntian Hengxun and Bomin paves the way for the company to advance in the field of high-power vehicle components and control modules, making the company have the ability to provide customers with modular products and customized electronic circuit solutions in the field of new energy vehicle power.
The clamping advantage of AMB ceramic substrate is clear. The company began to layout AMB ceramic substrate business in 2018. With the independent research and development capability of solder, sintering technology and manufacturing experience of printed circuit boards, the products have been recognized by customers in terms of technology and cost performance, and have been certified in rail transit, industry, vehicle regulations and other fields. In the aviation system, CRRC, Zhenhua technology, Guodian Nanrui and BYD semiconductors and other customers have carried out template verification and mass production. In the future, with the accelerated penetration of SiC, high-voltage IGBT and other products in the field of new energy vehicles, the company is expected to grow into a subdivision leader in the domestic power semiconductor liner industry.
Investment advice: we expect the company's 2022-2024 net profit to be 203 million yuan, 346 million yuan and 478 million yuan respectively. Considering that the profit share of the company's AMB ceramic substrate is expected to increase gradually after 2023, compared with the car PCB company with the support of valuation premium, give the company 25 times PE in 2023, corresponding to the target price of 16.93 yuan per share, covering for the first time and giving a "buy" rating.
Risk hints: (1) Jiangsu Bomin production capacity growth rate is not as expected; (2) domestic automotive electronic rate and on-board PCB promotion progress is not as expected; (3) ceramic substrate new customer expansion is not as expected.