The company is a leading manufacturer and technical service provider of micro-nano structure products in China, mainly engaged in the design, development and manufacture of micro-nano structure products, research and development of key manufacturing equipment and related technology R & D services. After more than ten years of steady development, we have ploughed the research and development in the field of micro-nano structure manufacturing, and gradually formed a core technology system with independent intellectual property rights. With years of reserve research and development of equipment and technology, the company continues to expand its business, from the initial use of lithography machine to depict anti-counterfeiting materials on PET film materials, to carving light guide plate highlights, reflective material moulds, mobile phone back cover reflective film, conductive film grid, etc., gradually deepen the application of lithography equipment, and integrate it with consumer electronics, traffic anti-counterfeiting, touch control, etc.
Since its establishment, the company has always adhered to technology-oriented development, and many years of R & D reserves have formed the ability of vertical integration from equipment to processing technology. the key thing is that the company has developed the self-made ability of the process core equipment micro-nano lithography machine, which mainly meets the company's needs of lithography, coating and pattern depiction on the film material.
Weiyeda, a subsidiary of the company, is mainly engaged in the development of large screen touch conductive film and flexible transparent conductive film, which is currently leading in China and is expected to be the first to benefit from the growth of large screen touch market. The company successfully developed a new Metal Mesh monolithic capacitive touch film. Compared with the traditional infrared touch technology, the production cost of this technology is close to that of the traditional infrared touch technology, but it greatly improves the sensitivity, solves the biggest user pain point of large screen infrared touch control, and is expected to set off a wave of technology substitution in the whole conference tablet market and educational interaction market.
The company's subsidiary Huari sublimation Risheng's main business is to use membrane materials to produce optical films for automobile roads, including new license plate films, road sign reflective films, road staff clothing reflective films, etc., is a leading enterprise of domestic reflective materials, has achieved technological breakthroughs and import substitution in the field of reflective films, and benefits from capacity release + market demand release in the next 3-5 years, the growth inflection point is coming.
Investment suggestion: considering the growth of core subsidiaries and the original business, we estimate that Sotavig's revenue will grow by 11.0%, 59.0% and 25.6% in 2019-2021, with revenue of 12.59,20.02 and 2.514 billion yuan, and net profit growth of 88.9%, 83.10% and 28.36%, respectively. Achieve net profit of 1.17,2.14 and 275 million yuan. Corresponding to the 2019-2021 PE of 43x, 23.7x, 18.4x, the first coverage, given a "buy" rating.
Risk hint: the downstream customer import progress is lower than expected, and the downstream demand is not as expected.