As the leading enterprise of the core components of traditional printing technology, the company has successfully completed innovative breakthroughs in logistics, new retail and financial intelligent equipment. With the demand for contactless distribution equipment such as takeout and drug sales, the window opportunity of the whole industry appears. In addition, no contact is a major trend in the upward trend of labor costs in various industries.
The business of selling water for this hundreds of billions of markets is beginning to become attractive.
Support the main points of rating
It occupies a leading position in the field of printing and scanning core components and whole machines. The company's special printing and scanning products rank first in the domestic comprehensive market share of independent brand enterprises; TPH thermal printhead is the only independent intellectual property manufacturer in China and ranks third in the world; CIS contact image sensor shares the first in China and the fifth in the world. The industry has a space of 40 billion US dollars, and the scale has risen steadily in the mature stage.
Break through the three major tracks, smart devices smoothly achieve transformation, and usher in a new track opportunity. The company chose to move downstream into the field of smart devices and return to growth through innovation. (1) take the lead in achieving breakthroughs in logistics, new retail and financial races: the company occupies an important share of Fengnest (and courier easy) oligopoly customers downstream of logistics, accompanied by the growth of the industry; NONGFU SPRING CO., LTD. is the main supplier in the field of racing beverages in the new retail segment, accompanied by the growth of major customers; the arrival of the gold standard in the financial sector has led to the double growth of sorter business. (2) more downstream track opportunities have emerged this year, including takeout cabinets, smart medicine cabinets, smart power change cabinets, and so on. From the gestation period to the development period, multi-industry not only expands the market space, but also helps to smooth the impact on the order fluctuation of a single major customer.
City partners open up the long tail market and are expected to cut into the field of operation. The company has reached cooperation with a number of operators, and through the city partner plan to develop small and medium-sized operators, cutting into the long-tail market will complement the business territory, while moving from equipment to operation contains great potential to face the consumer market directly.
Valuation
The net profit for 2020-2022 is expected to be 4.0,5.0 and 640 million yuan, with EPS of 0.60,0.76 and 0.95 yuan (revised down by 18% based on the 2019 performance fluctuation), and PE of 17, 13 and 11 times. The valuation does not reflect the growth forecast of 20% to 30%, and there is an opportunity for specific industries to break out after the normalization of non-contact demand.
With reference to comparable companies and historical valuations, there is still more than 50% room to maintain the buy rating.
Main risks faced by rating
New customer development is not as expected; overseas market performance is lower than expected; policy landing is lower than expected.
