Committed to electronic manufacturing service outsourcing, rich in customer resources, 2016 performance turned from deficit to profit
Zhuoyi Technology started as an electronic manufacturing outsourcing service, involving network communication terminals and consumer electronics OEM, has accumulated a wealth of customer resources, including: Huawei, XIAOMI, ZTE, Medion, Alcatel Bell and other large brands at home and abroad. In 2016, the company basically solved the problems left over by history, achieved initial results in business transformation, and turned losses into profits as a whole.
Develop 3C flexible Manufacturing with the help of the accumulation of traditional advantages
Intelligent manufacturing is the inevitable direction of the development of China's manufacturing industry in the future. under the dual pressure of the orders of labor-intensive manufacturing industry being snatched by countries with lower labor costs such as India and Vietnam and the trend of manufacturing returning to the mainland in countries such as Europe, America and Japan, manufacturing automation is the trend of the times. After years of 3C manufacturing and automatic production, the company has accumulated a more mature manufacturing automation technology reserve and practical experience, which is more suitable for multi-variety and small batch production mode. With the continuous improvement of the company's intelligent manufacturing, operating efficiency, manufacturing scale and flexible manufacturing will drive the rapid improvement of the company's main business.
Aiming at the opportunity of optoelectronic industry, relying on the advantage of equipment
The company made it clear in its annual report that the company will maintain its R & D investment in optoelectronic display business, seize market opportunities, speed up the accumulation and industrial application of new quantum dot material technology, and make it another profit growth point of the company as soon as possible. Among the 17 R & D projects invested in the company's annual report, there are 4 R & D projects related to LED optoelectronic business, indicating the company's ambition to enter the optoelectronic industry. Considering the company's advantages in the field of SMT and referring to the path of Taiwan competitors, LED Lightbar will be the best entry point for the company to enter the optoelectronic industry. The quantum dot technology has a development prospect and is expected to become the focus of the company's future development!
The company completes the non-public offering and strengthens the construction of intelligent manufacturing and innovation platform
The company announced the completion of a non-public offering, issuing a total of 96.8 million shares to seven specific targets at an issue price of 7.81 yuan per share and raising 756 million funds. after the completion of this offering, the proportion of shares held by the actual controller of the company increased to 19.55%. The funds raised are mainly used for intelligent manufacturing and innovation platform construction projects. Through the construction of innovative platform, the company will enter into emerging markets such as smart wear, smart home, car networking, AR/VR, etc., and will achieve long-term binding with customers and bring technology and order resources for the company. The first coverage rating assumes that network products remain stable this year, while smartphone contract products continue to grow thanks to the rapid growth in domestic customer demand. Considering the capability characteristics of the company in the field of intelligent manufacturing and the development potential of the optoelectronic industry, the company's main business has gradually ushered in the opportunity of inflection point. Although the performance has not yet been reflected in the first quarter due to the impact of the off-season of the industry, with the start of customer demand at home and abroad, VR, AR, shared bicycles and other products of the Internet of things innovation platform are in mass production. The company's EPS in 17-19 is expected to be 0.095 yuan, 0.19,0.32 yuan, with a compound growth rate of 84.7% in the next three years. Although the short-term valuation is too high, the company will have a high growth rate in the next 3 years. We believe that there are trading opportunities. From the perspective of PEG, we will give the company 59-65 times PE in 2018, corresponding to a target price of 11.21-12.35 yuan, covering for the first time and giving an overweight rating.
Risk hint: the improvement of intelligent manufacturing efficiency is lower than expected, the order of intelligent hardware products is lower than expected, and the progress of optoelectronic industry is lower than expected.