Investment summary
Zhengye Technology deeply ploughs the field of PCB. Zhengye Technology started its business from the precision positioning auxiliary materials used by PCB, and has ploughed deeply into the field of PCB for many years. At present, it has formed two product categories: PCB precision machining auxiliary materials and PCB precision machining testing equipment in PCB. Downstream customers cover Jingwang Electronics, Chongda Technology, Eaton Electronics, Xingsen Technology and other famous customers. However, due to the limited space in the PCB industry, the company's overall income compound growth rate of 12.22% in 2011-2015 is limited.
After listing, increase the acquisition, intelligent manufacturing plate is becoming more and more perfect. After the listing of the company, in order to increase the development and form the layout of the intelligent manufacturing industry chain, we continue to increase acquisitions. Acquired Jiyin Technology in 2016 and entered the field of module equipment; successfully acquired Xuan Shuo Optoelectronics in the first half of 2017 to enter the field of LED automation; acquired Peng Yuwei to enter the field of robot automation; and acquired 80% stake in Jiukun Information Technology in the second half of 2017 to enter the field of intelligent manufacturing solutions. Through continuous acquisition, the company's intelligent manufacturing plate is becoming more and more perfect, forming an integrated supply capacity of automation and solutions, downstream covering 3C, lithium, automation, LED, home appliances, elevators and other prosperous industries.
The layout of lithium power equipment is taking shape day by day. The x-ray testing equipment of the company's lithium power division comes from the independent research and development of the company's x-ray technology, mainly for non-destructive testing of the safety of lithium batteries, which is used in many aspects of lithium batteries. The company is the only supplier of many lithium power companies. With the improvement of the safety requirements of lithium batteries, the demand for such devices will continue to enlarge in the future. The soft package Pack line made by Xuan Shuo Zhi, a subsidiary of the company, has been debugged and started to be delivered to the outside world, and the square aluminum shell Pack line is currently in the assembly stage. The polar ear laser cutting equipment has completed the trial production of the prototype and achieved a zero breakthrough in the order. Compared with the traditional polar ear cutting, polar ear laser cutting has obvious advantages, and the market demand will continue to increase in the future.
An additional 972 million yuan is proposed to expand the territory. The company issued a fixed increase plan in October 2017, proposing an increase of 927 million yuan to invest in intelligent equipment manufacturing centers and FPC functional membrane materials for production expansion and technical transformation projects. The intelligent equipment manufacturing center is mainly used to invest in the expansion of middle and high-end liquid crystal module intelligent equipment, lithium battery intelligent equipment and elevator intelligent equipment. FPC mainly produces covering film, battery shielding film, glue single / double-sided substrate and covering film, battery shielding film, glue single / double-sided substrate and covering film. On the basis of the covering film and release film currently produced by the company, the product variety of functional membrane is increased to meet the needs of customers' one-stop purchase.
Investment advice. It is predicted that the sales income of 2017, 2018 and 2019 is 14.22,20.1 and 2.681 billion yuan, the net profit belonging to the parent company is 2.22,3.39 and 467 million yuan, the EPS is 1.13,1.72,2.37 yuan, and the corresponding PE is 35.9,23.6,17.1 times. Coverage for the first time, giving the company an "overweight" rating. Give 30 times PE in 2018, target price: 51.56 yuan.
Risk hint. Acquisition synergy does not appear, goodwill impairment