Focus on automated testing, ICT test equipment leading the world, extended radio frequency / acoustics and other multi-tuyere companies have 15 years of experience in the development and production of automated test equipment, to provide testing equipment for brand operators such as Apple Inc, Microsoft Corp, Cisco Systems, Alphabet Inc-CL C, Qualcomm Inc, as well as global famous intelligent manufacturers of electronic products, such as Hon Hai, Quanta, Compal, Pegatron, Weicuang, etc. Products cover electrical (ICT/FCT), radio frequency, acoustics, optical testing equipment, downstream coverage of consumer electronics, automotive electronics, medical electronics, industrial electronics and other industries.
The performance is growing well, and the gross profit margin / net profit rate is attractive. Apple Inc is an important consumer electronics customer in recent years. The company's revenue has increased from 391 million yuan in 2016 to 687 million yuan in 2018. The net profit of returning to the mother increased to 112 million yuan from 78 million yuan in 2016. Among them, the company recognized equity payment fees due to the implementation of the equity incentive plan in 2017, and the R & D expenses increased greatly in the same year, resulting in a decrease of 58.5% in net profit due to the rise in management costs. excluding the influence of relevant factors, the net profit increased by 28.38% in 2017. According to the 2019 performance forecast, the annual revenue is 827 million yuan, + 20.29% compared with the same period last year, and the net profit is 150 million yuan, + 34.72% compared with the same period last year.
Export income accounts for 59%. Apple Inc is the largest brand operator customer, accounting for nearly 20%. Export income in 2018 is 403 million yuan, accounting for 59%, of which the export volume of the bonded area in 2018 is as high as 296 million yuan, accounting for 43%. The income from mainland China is 285 million yuan, accounting for about 41%, slightly less than the overall export income. The main brand operator customers of 2019H1 Company in 2016 are Apple Inc, Microsoft Corp and Cisco Systems, among which Apple Inc is the company's largest brand operator customer. In 2018, the sales revenue from Apple Inc reached 134 million yuan, accounting for 19.5% of the company's total revenue for that year. Microsoft Corp and Cisco Systems are also important brand operator customers of the company, accounting for 3.4% and 2.7% of sales revenue from Cisco Systems and Microsoft Corp respectively in 2018.
Automated test equipment: effectively solve the problems of rising labor costs and low manual test discrimination rate for electronic product manufacturers, product testing is the main means to ensure product quality, including: motherboard ICT online test, FCT function test, radio frequency test, audio test, screen and LED display test, gravity sensor test and constant pressure test. There are many kinds of automated testing, high testing accuracy, limited speed of traditional manual testing, interference of subjective / objective factors and so on.
According to the company's prospectus, global sales of industrial robots will reach 414000 in 2019, with a compound growth rate of more than 12% in 17-19. We believe that the demand for automated test equipment as one of its important areas will continue to increase. This kind of equipment can improve the efficiency of the production line and improve the consistency of product quality. it is expected that the market space of test equipment for middle and high-end electronic products will be gradually opened.
Profit forecast and rating: the company has good growth and high level of R & D investment. The market for automated test equipment is expected to increase with the continuous growth of the product range of downstream electronics manufacturers. in addition, the demand for RF component testing is expected to increase gradually for new requirements such as 5G base station construction and satellite Internet. The company is expected to maintain high growth in the next few years. It is estimated that in 19-21, the revenue growth rate is 20.31%, 57.39%, 47.74%, 8.27, 1.302, 1.923 million, 1.48, 2.44, 360, 5.18, and 68.88, respectively, respectively, for EPS, 2.13, 3.51, and PE, respectively.
Considering the comparable valuation method, the comparable company's PE in 2020 is 44.8x, the target price is 3.5144.8x 157.25 yuan, and the "overweight" rating is given for the first time.
Risk hint: customers focus on risk, export income accounts for a relatively high proportion, the epidemic leads to a decline in overseas demand.