Main points of investment
Fluorescence spectrometer leader, an excellent R & D enterprise with technical genes. The company's products cover spectrometer, chromatograph, mass spectrometer, downstream including environmental protection, food safety, industrial testing and analysis, government supervision, scientific research and other fields. The company is the absolute leader in the field of X-ray fluorescence spectrometer, with a market share of about 70%.
The chairman and general manager of the company both have technical background and have been focused on the field of X-ray fluorescence spectrometer for more than 20 years. The company pays attention to R & D investment, and the proportion of R & D personnel is about 35%. From 2010 to 2015, the proportion of R & D income is as high as 12-13%.
In the field of food safety and environmental protection testing, small companies in hundreds of billions of markets are expected to usher in the harvest period. The company's development strategy focuses on environmental protection, food safety, third-party testing and medical and health industries as priority expansion areas. It is estimated that the market space of environmental testing equipment during the 13th five-year Plan will reach 101.4 billion yuan. The market space of medical mass spectrometer is about 36.8 billion yuan, and the demand for XFR equipment for grain heavy metal detection is more than 4.3 billion. The company has invested more than 250 million in R & D since 2010, and we judge that with policy catalysis, R & D achievements in food safety, environmental testing and other areas are about to enter the harvest period.
Epitaxial layout of VOCs testing, POCT and other growth industries, profits and table brought 17 years of double growth. The company accelerates the industrial layout in the fields of environmental protection, food safety and life science through epitaxial mergers and acquisitions. Horizontally, the company has moved from inorganic testing to organic testing, and then to the field of biomolecule (life science) testing; vertically, the company extends from testing instruments to downstream testing services, including environmental protection and medical third-party testing. Through epitaxial mergers and acquisitions to enter the fast-growing industries such as VOCs online monitoring and POCT in vitro diagnosis, the company will enter the high-speed growth channel in 2017.
For the first time covering, giving "overweight" rating: optimistic about the long-term growth trend of the inspection and testing industry, the company's endogenous research and development of food safety, environmental protection testing equipment is expected to enter the harvest period, epitaxial mergers and acquisitions into VOCs and POCT and other growth industries, the company is about to enter a comprehensive outbreak period, it is estimated that the company's 2016-2018 EPS is 0.11lb 0.28pm 0.44 yuan, corresponding to PE87x/35x/22x, given "increased holdings" rating.
Risk hint: the promotion of environmental protection and food safety policies is lower than expected.
