Main points of investment:
The global market capacity is considerable, and the GDP continues to rise.
According to a report released by Prismark Partners LLC, a professional consulting firm for the electronic information industry, the global PCB market output value has increased from US $41.2 billion in 2009 to US $55.3 billion in 2015. In the future, driven by the sustained development of the global electronic information industry, the global PCB market output value is expected to grow from US $54.2 billion in 2016 to US $60.4 billion in 2021, with a compound annual growth rate of about 2.2%. According to a report released by the World Electronic Circuits Council (WECC), China's PCB output value increased from 152.097 billion yuan to 166.909 billion yuan from 2011 to 2015, with a compound annual growth rate of 2.35 percent, higher than the global average. In 2015, Chinese mainland PCB accounted for 46.6% of the world's total output value, making it the largest PCB production base in the world.
According to Prismark, the output value of China's PCB industry will grow from US $27.1 billion in 2016 to US $32.1 billion in 2021, with a compound annual growth rate of 3.4 per cent.
Overseas in-depth layout, the main PCB performance growth rate
The company's main business is printed circuit board (PCB) research and development, production and sales. In 2016, the company achieved revenue of 816 million yuan, an increase of 29.0% over the same period last year. The company's main business income accounts for more than 95% of operating income, which is the main source of income. In the same period, the company deducted non-return net profit of 120 million yuan, an increase of 110.5% over the same period last year. The gross profit margin of the main business was 32.83%, an increase of 5.65% over the same period last year. The increase in gross profit margin was mainly due to the scale effect after the production of Mingyang in Jiujiang and the impact of RMB depreciation, which remained at a high level in the PCB industry, in line with the industry characteristics of small batch PCB manufacturers, indicating that the company has strong product pricing ability and cost control ability, and strong profitability.
During the reporting period, the proportion of the company's export sales revenue increased year by year from 93.9% in 14 years to 96.3% in the third quarter of 17 years. The company has established a good market image in the industry, is an early overseas layout of the domestic PCB industry, and has established a long-term and stable cooperative relationship with many well-known foreign customers. In recent years, the trend of the transfer of PCB industry to China and the further concentration of market share to superior enterprises, and the increasing demand for small batch PCB in downstream fields. The company takes advantage of the opportunity to raise investment and increase production, and we expect the company's PCB business performance to continue to grow at a high speed.
Profit forecast
It is estimated that the company's EPS from 2017 to 2019 is 1.01,1.16 and 1.41 yuan respectively. Taking into account the comparable company's PE level and the company's profit growth, the company is given a reasonable share price range of 25,035 yuan in 2017, taking into account the comparable company's PE level and the company's earnings growth.
Risk hints: RMB appreciation leads to exchange rate risk; inter-industry competition intensifies; growth falls short of expectations.
