Domestic 3C automation equipment well-known enterprises, performance is expected to continue high growth.
① company is a well-known domestic 3C automation equipment production enterprises, the main business is outstanding. The company's main business is automation equipment and fixture products, cut into the field of TWS headphone module equipment in 2016, and won the order of Apple Inc, with obvious first-mover advantage, is the core supplier in this field.
The operating scale of ② company is growing rapidly and its profitability is stable. The company's main production capacity is used to meet the product needs of Apple Inc. Benefiting from the rapid development of Apple Inc, the company's revenue CAGR in 2013-2019 is 48.76%, which is growing rapidly, and the gross profit margin remains between 40% and 50%, which is in a high range (the gross profit margin of the industrial automation industry is between 35% and 40%), and the profitability is stable.
③ Company has outstanding profitability and profit stability in Apple Inc's industrial chain. In recent years, the company's R & D investment accounts for more than 10% of revenue, and the technology reserve is rich. In addition, compared with Corey Technology and Bozhong Seiko, which is located in the same Apple Inc industrial chain and whose main business is automation equipment, the company's profitability and profit stability are outstanding.
In February, ④ announced an increased plan to issue no more than 16.3108 million shares at an issue price of 33.72 yuan per share, with a total fund raised of no more than 550 million yuan, which is mainly used for the expansion of intelligent manufacturing equipment for new energy auto parts and automation equipment construction projects in the consumer electronics industry. It is worth noting that the only subscriber for this increase is Mr. Sun Feng, the actual controller of the company, which fully demonstrates the development confidence of the company.
With the explosion of TWS headphones and the rise of 5G mobile phones, intelligent upgrades boost the demand for 3C automation equipment.
The ① TWS headphone market is booming, and module production equipment is expected to fully benefit. In 2019, MediaTek, Qualcomm Inc and Huawei successively achieved Bluetooth technology breakthroughs. Huaqiangbei quickly opened the Android penetration space with MediaTek's cost-effective wireless headset solution, which led to the outbreak of the wireless headset market in the second quarter. The rapid growth of demand for TWS headphones has a linkage demand for its module production equipment. It is estimated that the market space for module production equipment corresponding to the new TWS headphone production line from 2020 to 2021 is 28 billion yuan.
② 5G replacement trend is coming, 3C automation equipment recovery is expected. The three major operators are promoting the independent networking of SA, and the sales of 5G mobile phones in 2020 are expected to usher in rapid growth, and the corresponding testing and assembly equipment need to be upgraded or upgraded, so it is expected to lead the 3C automation equipment industry to usher in a recovery. The market capacity of the whole machine testing and assembly production line brought by the new 5G mobile phones in 2020-2021 is about 45 billion yuan. The company's mobile phone automation equipment layout is perfect, the competitive advantage is obvious, is expected to fully benefit from the launch of Apple Inc's 5G mobile phone and the improvement of automation productivity, high growth is worth looking forward to.
Continuous epitaxial mergers and acquisitions, actively layout the field of semiconductor testing and auto parts automation.
① Apple Inc has strict supplier certification standards. In 2011, the company passed Apple Inc qualified supplier certification. At present, the company's automation equipment has fully covered Apple Inc's full range of products. In addition, Apple Inc Apple Watch sales increased significantly superimposed on the launch of new products, the company's air tightness testing equipment will lead to demand, the performance is worth looking forward to.
② acquires Wuxi Changding and Japanese Optima, lays out the field of semiconductor testing equipment, broadens the company's intelligent manufacturing product chain, creates a new profit growth point, and promotes the long-term development of the company's business. By the end of June, the company had completed a capital increase of 120000 million yen in Optima Co., Ltd. through Seton International and held a 73.75% stake in Optima Co., Ltd.
③ acquires Lingou Technology to gain the advantages of high-quality customers, technical reserves and sales channels in the auto parts industry and lithium battery industry, further expand the company's automation equipment product line and application fields, and enhance the company's anti-risk ability and profit growth point.
With the continuous expansion of ④ 's market segment, the company will increase its investment in industrial cutting-edge technology, continue to give full play to multi-business synergy, consolidate its leading position in the intelligent manufacturing industry, and comprehensively enhance the company's core competitiveness and sustainable development ability.
Coverage for the first time, giving the company an "overweight" rating. The company is a well-known domestic 3C automation equipment enterprise, which is expected to fully benefit from the outbreak of the TWS headset market, the rise of 5G mobile phones and the rapid growth of Apple Inc Apple Watch sales. In addition, the company actively layout semiconductor testing, auto parts automation and other areas, continue to create new profit growth points, the company's future growth is worth looking forward to. It is estimated that the company's net profit from 2020 to 2022 will be 217 million yuan, 301 million yuan and 410 million yuan respectively, and the corresponding PE will be 44, 31 and 23 times respectively.
Coverage for the first time, giving the company an "overweight" rating.
Risk hint: the risk of a single industry, the risk of market development in a new industry, the risk of exchange rate changes, the risk of integrated management brought about by scale expansion, and the measurement of market size is based on certain assumptions, there is a lower-than-expected risk.