The comprehensive strength of domestic electronic process service industry is the strongest.
The main business of New Asia process is to provide electronic process system solutions and electronic process products involved in the implementation of electronic process solutions for electronics manufacturing professionals. The electronic process is the manufacturing process of electronic products, the main work is to assemble electronic components, devices, connectors, hardware, plastic parts and other bulk materials into all kinds of electronic products with reliable quality and solid structure by using professional process technology such as welding, pasting, bonding, fastening, measurement, testing and so on. From the earliest electronic tools franchise store, to the electronic tool chain store, to the current electronic process system solution service provider, the company is the pioneer of the electronic process business model and has a first-mover advantage in this industry; the company has successfully introduced the application technical support and supporting services of electronic process solutions for nearly 1000 international well-known enterprises, and established strategic partnerships with many well-known enterprises. Through the continuous upgrading of the business model, the company's profit model and competitive advantage are stronger than ordinary wholesale retailers and traders, and the profit margin has been greatly improved by selling products through services. through services to establish and maintain long-term cooperative relations with important customers, enhance the company's competitive strength.
The electronic process industry is developing rapidly and has a large market capacity.
With the development of the electronic manufacturing industry, there is a trend of specialization and "outsourcing" of non-core business, which leads to the refinement of the division of labor in the electronic industry. Fierce market competition requires electronic manufacturing industry to improve product quality and reduce production costs at the same time. The cycle of the upgrading of electronic products has been shortened, which has promoted the development of the professional electronic process industry, from simple suppliers of auxiliary consumer materials to logistics, production process consultation, production equipment layout and so on.
In recent years, electronic process enterprises account for about 10% of the total sales of the electronic information manufacturing industry. After deducting software revenue, China's electronic information manufacturing industry had sales revenue of 4.27 trillion in 2006, an increase of 23.77 percent over the same period last year, 430 billion in the electronic process industry, 5.02 trillion in 2007, an increase of 17.56 percent in 2007, an increase of 500 billion in the electronic process industry, and 5.54 trillion in 2008, an increase of 10 percent over the same period last year. 550 billion in the electronic process industry. According to Sadie consultants, the electronic process industry will maintain a growth rate of about 14% in the future, reaching 808 billion yuan by 2011, which is higher than the growth rate of the supplier industry.
The domestic electronic process industry is in the ascendant.
At present, there are few pure electronic process enterprises in China, and the main enterprises in the industry include electronic process enterprises, suppliers and manufacturers. According to the comprehensive strength of Sadie consultants, New Asia process ranks first, while other domestic competitors include Beijing Oriental Zhongke Integrated Technology, Yintian Chemical, Shenzhen Hualun Electronic tools, Shenzhen Jizhirong Industry and Trade and other companies, while foreign companies are mainly Japan Yamashan Co., Ltd., Agilent, Germany Mar Group, Japan SHISHIDO, American Dow Corning, Maito High-tech, Japan Xinyue Chemical Company and so on.
The solutions of electronic process enterprises need to be integrated with the specific technological processes of customers, with great differences, which increases technical barriers and customer stickiness, and has higher barriers such as suppliers, customers, sales channels and scale. the profit level of the industry will remain relatively stable for a certain period of time.
The company's competitive advantages and disadvantages.
The company has a relatively obvious first-mover advantage in this industry. It has established a marketing network of 5 subsidiaries and 15 branches in the Pearl River Delta, Yangtze River Delta and Bohai Bay Rim, especially in the Pearl River Delta. 60% of the income comes from South China, and gradually develops to areas where the electronics industry is concentrated in East China and North China. At the same time, only about 1/10 of the company's revenue comes from retail and wholesale, accounting for the vast majority of revenue through terminal services, and its profit margin is higher than that of ordinary retail wholesalers. The company is a high-tech enterprise recognized by Shenzhen Science, Technology and Information Bureau. It has provided technical services to Wei Keng, Foxconn and other companies, and signed technical service agreements with many electronic companies such as Dongguan Jiahui Electronics Factory (Flextronics subsidiary). At the same time, compared with foreign companies, the global layout, internationalization, brand awareness, capital strength and so on still need to be further improved.
Profitability.
The company's operating income in 2006, 2007 and 2008 was 219 million yuan, 304 million yuan and 371 million yuan respectively, an increase of 39.26% and 23.82% respectively over the same period last year. The 2009 operating income decreased slightly, mainly due to the negative impact of the international financial crisis on the real economy of the company's downstream industries in the second half of 2008, and large and medium-sized customers slowed down or stopped production expansion during this period. The company's main business revenue began to decline in the fourth quarter of 2008, falling to 60% of the level in the third quarter of 2008 in the first quarter of 2009; gradually returning to the level of the third quarter of 2008 in the second quarter of 2009, and basically stable in the third and fourth quarters of 2009. The overall gross profit margin level has also been affected by this since 2008, mainly due to the increased cost pressure of downstream customers, the general product price reduction of the company, and the adjustment of the company's product structure. However, the overall gross profit margin is still roughly maintained at about 24%, which is higher than that of ordinary product suppliers. At the same time, due to the decline in sales, management and financial expenses, the net profit in 2007 still maintained a year-on-year growth of 24%, which was 33 million yuan in 2009, 25 million yuan in 2009 and 31 million yuan in 2009.
Fundraising project.
The company plans to issue 28 million shares to raise funds for "new marketing outlets and logistics distribution center construction project" (146 million yuan, construction period of 2 years) and "new Asia electronic process technology center project" (41 million yuan, construction period of 1 year). The former includes a logistics distribution center and 10 marketing outlets (branches), each year a total of two phases, the first phase: a logistics distribution center in Suzhou, Xiamen, Zhuhai, Foshan, Songjiang, Wuxi, Changshu, Changzhou and other high-tech development zones to build seven marketing outlets; the second phase: Yantai, Qingdao, Mianyang and other high-tech development zones to build three marketing outlets. The selected areas are all areas where electronic manufacturing enterprises are concentrated, and there is sufficient demand for electronic processes. The latter carries on the research and development of electronic process technology and products, such as LCD backlight module process, high-power LED packaging process, molecular contamination process, electronic process space electrostatic protection process, electronic process space purification process and so on.
Profit forecast.
We forecast that the company's operating income from 2010 to 2012 will be 465 million yuan, 641 million yuan and 887 million yuan respectively, the gross profit margin will basically remain at the 2009 level, and the EPS will be 0.39 yuan, 0.52 yuan and 0.71 yuan respectively. Combined with the current market price level of new shares, we think that the reasonable value range is 17.55 yuan-19.50 yuan, corresponding to the 2010 performance of 45-50 times earnings.