Main points of investment
Benefit from 3C and new energy vehicle tuyere industry, endogenous multiple blossoms: on the one hand, the long-term transfer of global PCB production capacity to Chinese mainland, FPC penetration will be further expanded. The company's key layout for the FPC field of laser cutting machines, punching machines, marking machines, automatic reinforcing machines and other equipment, as well as the film series will significantly benefit from the upgrading of consumer electronics brought a large number of applications of FPC; on the other hand, the company, as the leading domestic lithium battery X-ray testing equipment, will continue to benefit from the rapid growth of the domestic new energy vehicle industry. The parent company has a wide range of equipment around 3C and lithium electricity, some of which have a long time span and deep technical precipitation, and the parent company's business is expected to form a multi-point flowering situation.
Jiyin has obvious advantages in science and technology, gradually opening up the domestic market: Jiyin Technology is an excellent supplier of LCD module automation equipment in China, and its customers include JDI, OMRON, Sharp, Xinli, Tianma and so on. As the investment in the high-generation production line of the flat panel display industry continues to increase and the global flat panel display production capacity continues to transfer to China, it will obviously drive the investment and demand growth of testing equipment in the flat panel display industry, and the company will continue to benefit as an excellent supplier of domestic panel Module segment technology.
Xuan Shuo Zhi made LED business will remain stable, cut into lithium PACK automation to open the growth space: benefiting from the LED industry policy support and good market demand, the company's LED display assembly line "lamp intelligent production line" automatic splitter, tape machine and other equipment sales will continue to grow steadily. As an important platform for the parent company to carry out projects such as lithium battery PACK automatic assembly line and polar ear laser cutting equipment, it has opened up a space for growth in the field of automation in the lithium electricity industry.
Pengyuwei has a strong position in the field of welding integration of elevators and compressors: Pengyuwei has a strong competitiveness in design and system integration, and has formed a certain industry influence in the welding field. Its products cover the production lines of AGV, motors and compressors, and customers are distributed in elevators, household appliances, automobiles and batteries. Especially in the application of unmanned factory in elevator industry, the automatic production line based on welding technology is highly recognized by customers.
The company has a solid position in the field of integrated subdivision of elevator and compressor welding automation production line.
Acquisition of Jiukun Information, comprehensive layout of intelligent manufacturing: the company acquired 80% stake in Jiukun Information in cash, making up for the company's shortcomings in implementing the software part of the overall intelligent manufacturing solution. The company is expected to integrate Jiukun information with the business of various subsidiaries to form an omni-directional layout of equipment (point), production line (line) and intelligent factory (surface).
Investment suggestion: we forecast that the company's revenue from 2017 to 2019 will be 1.323 billion yuan, 1.755 billion yuan and 2.282 billion yuan respectively, the net profit attributed to the parent company will be 227 million yuan, 317 million yuan and 422 million yuan respectively, and the earnings per share will be 1.15,1.61,2.14 yuan respectively. We get the median expected PE of comparable listed companies in the same industry to be 36 in 2018. Considering that there are certain business differences, synergy and integration risks between the holding subsidiaries and the parent company, we choose 32 times as the company's reasonable price-to-earnings ratio in 2018, and the company's expected earnings per share in 2018 is 1.61 yuan. then the six-month target price is 52 yuan, given the "buy-A" rating.
Risk tips: downstream PCB industry demand growth slows down, OLED penetration increases faster than expected, subsidiary performance falls short of expectations, parent company does not cooperate with subsidiary companies, and so on.