Main viewpoints
1. With the growth of endogenesis and extension, the company's performance has improved greatly.
The company's revenue in 2017 was 1.265 billion yuan, up 110.78% from the same period last year, and its net profit was 198 million yuan, up 171.27% from the same period last year. This is mainly due to the merger of the new subsidiaries Peng Yuwei and Xuan Shuo Optoelectronics, while the company's PCB, lithium battery, display panel and other businesses have achieved rapid growth, of which PCB precision processing and testing equipment achieved business income of 196 million yuan (year-on-year + 144.63%), lithium equipment and accessories business achieved business income of 192 million yuan (year-on-year + 60.37%) Subsidiary Jiyin Technology (display panel equipment) achieved business income of 320 million yuan (year-on-year + 57.19%).
The company's gross profit margin remained basically stable at 37.46%. With the expansion of revenue and improved management, the company's three rates decreased by 7.5 percentage points, resulting in a substantial increase in net profit margin, up 3.7 percentage points from the same period last year.
two。 The policy focuses on supporting the intelligent upgrading of the manufacturing industry, and the 3C field is huge. China's manufacturing industry is in the tuyere of industrial upgrading. The State Council and the Ministry of Industry and Information Technology have successively issued relevant documents emphasizing that intelligent manufacturing is the direction of industrial upgrading. During the 18 years of the two sessions, "intelligent manufacturing" was included in the government work report, "made in China 2025" was implemented, major projects such as strong industrial base, intelligent manufacturing and green manufacturing were promoted, and the development of advanced manufacturing was accelerated. Will be the key direction of work.
3C consumer electronics is an area with the largest room for intelligent manufacturing upgrading outside the automobile industry. Consumer electronic products are constantly developing towards miniaturization, refinement and portability, innovative applications are accelerating, labor is becoming more and more difficult to meet process requirements, superimposed labor costs are rising, and the demand for intelligence is becoming more and more urgent.
3. Strategic positioning of intelligent manufacturing solution suppliers, complete technology deepening layout + market diversification expansion the company deepens the layout of intelligent related technologies through endogenous extension, has completed the technical layout of software, machine vision, automatic production line and other technical layout, and initially has the ability of intelligent manufacturing system solutions.
With the diversified expansion of the market, the company and its subsidiaries cover different consumer electronics related fields such as PCB, lithium battery, display panel, LED, etc., and have achieved long-term and stable cooperative relations with many well-known enterprises, with rich customer resources, ensuring market demand.
In the short term, with the rapid development of downstream display panels and lithium electricity, the PCB industry continues to pick up, while the company continues to follow the market demand to develop and launch new products, which is expected to continue to grow with the industry; in the long run, with the continuous integration of the company's technology and market, intelligent manufacturing solution capabilities are gradually enhanced, which is expected to expand to more areas and achieve sustained growth.
4. Profit forecast
We estimate that the 18-20 year return net profit of the company is 3.11 pound 4.14 / 537 million yuan, corresponding to EPS 1.58, 2.10 and 2.72 yuan, and corresponding PE is 19-15-11 times. Maintain the recommended rating.
5. Risk hint
Lower-than-expected demand, lower-than-expected business integration and lower gross profit margin risk