Main points of investment:
Relying on strong independent research and development and innovation ability, moment technology has become the domestic leader of machine vision equipment. The company was founded in 2007 and landed on the Shenzhen Stock Exchange in 2019. The company is mainly engaged in the business of machine vision equipment, and its products mainly include optical inspection equipment, control cable components and control units. relying on the strong strength of independent research and development, the company has become a leading supplier of machine vision equipment. Domestic leading in 3D inspection technology, some products have successfully achieved import substitution.
The electronic industry chain drives the demand for machine vision equipment. GGII estimates that the domestic machine vision equipment market will exceed 15 billion in 2023. Compared with human eye observation, machine vision equipment has multiple advantages such as high accuracy, high speed and strong adaptability, and has a wide range of downstream applications. Electronic equipment products require higher precision, and the replacement speed of superimposed electronic products is accelerated, which makes machine vision equipment widely used in the electronics industry. Our analysis shows that with the proposal of the "made in China 2025" power strategy and the rapid development of the domestic electronic information manufacturing industry, it is expected that the scale of China's machine vision field will maintain stable and rapid growth. According to GGII, China's machine vision market will maintain a growth rate of more than 20 per cent in the next five years, with a scale of 15.56 billion in 2023.
With the dual empowerment of technology and management, the company continues to expand its product range, and it is expected that the release of a number of new products will soon help the company to improve its performance.
The core management of the company is mostly technical background, deep ploughing the underlying technology, all technologies are self-developed, and the products are universal and expandable. On the one hand, the company deeply ploughs the electronic industry chain to achieve "whole-line sales", launching 3D SPI, 3D AOI, mini LEDAOI and FPC AOI, forming a testing scheme that can cover the whole production line, obtaining good orders for new products, or helping the company improve its performance. On the other hand, the company relies on technological advantages to continue to expand the industry, in the semiconductor, pharmaceutical, dispensing machine and other industries, the company has a forward-looking layout, or continue to contribute to the company's follow-up business development.
There is still a lot of room for growth in Koh Young Technology, a leading international manufacturer in South Korea. Koh Young Technology of Korea is the leading manufacturer of 3D machine vision inspection equipment in the world, focusing on 3D precision measurement and testing equipment, and its business is oriented to a variety of industries around the world, including industrial processing, medical, semiconductors and so on. In 2019, Koh YoungTechnology achieved operating income of 1.317 billion yuan, compared with 191 million yuan for machine vision equipment in the same period. Although there is still a gap in business volume and customer breadth for standard Koh Young Technology, considering its strong independent R & D strength, no generation difference in 3D technology and products, and forward-looking cross-domain business layout, there is a bright future in the future.
Cover for the first time, giving a "buy" rating. We estimate that the EPS of the company in 20-22 years is 0.55,0.96,1.25 yuan per share respectively, and the current stock price (closing price on 2020-9-4) is 34.44 yuan, corresponding to 62.6,36.0,27.5 times PE. Select Tianzhun Technology and Jintuo shares in Wind Machine Vision concept Index (8841081.WI) as comparable companies, the average PE of comparable companies in 20-22 years is 81.9,55.4,43.4 times, the valuation level of the company is low. Considering that the company is the leader of 3D optical testing equipment in China, there is great potential for domestic substitution in the future, and the company layout a number of new products, if the company starts to increase the amount, it may bring rapid improvement in revenue and performance. So it was covered for the first time, giving a "buy" rating.
Risk hints: the lower prosperity downstream has led to a sharp decline in traditional 2D AOI business and a decline in gross profit margin; slow delivery of orders for new products such as 3D SPI and AOI, hindering the progress of market promotion of mini LED and FPC AOI; and controlling the decline of business such as cable components under the influence of the external trade environment.
