Recommendation logic: the company is a global leader in pressure testing and calibration instruments. with technology and customer reuse, the company actively carries out horizontal expansion of products in the field of temperature and electricity, and improves the product system. In addition, the company is also actively deepening the industrial chain, promoting the self-produced projects of MEMS sensors, the core components of pressure instruments, and SaaS cloud service projects, so as to further improve the competitiveness of the company's products.
Pressure testing and calibration instruments are the world leader, and the volume and price of products are rising to ensure long-term growth. The company is the global leading enterprise of pressure testing and calibration instruments, with the deep accumulation of technology, the company's products gradually achieve high-end; at the same time, the company's iterative development ability also ensures the rapid launch of new products. The volume and price of the company's products have risen to ensure long-term growth.
The calibration instrument industry has high barriers and large room for growth, and Conster has entered the first echelon in the world. Customers in the calibration instrument industry require high precision and stability of the products and high recognition of the brand. The industry barriers are high, and the companies in the industry have high profitability. The gross profit margin of the products of companies such as Custer and Fluke is maintained at more than 70% all the year round. At present, the global market space for pressure and temperature testing and calibration instruments is more than 10 billion yuan, and foreign companies such as Fluke and GE dominate the market. Domestic brands have entered the first echelon in the world and have occupied a place in the field of middle and low-end products in China, but there is still a lot of room for development in overseas and high-end fields.
With the advantage of the main business of testing and calibration instruments, we will build a new business architecture of "calibration equipment + MEMS sensors + SaaS cloud services" along the industry chain. MEMS sensor is the core component of calibrating instruments, transmitters and other industrial instruments. at present, it is monopolized by a few foreign giants such as GE and Yokogawa Motors. The company has started the construction of MEMS sensor IDM project, which will produce 300000 sets of pressure sensor cores per year after the project is completed. The company is expected to contribute 210 million profits. In addition, in order to help users with digital equipment management and data analysis, the company will launch a SaaS software platform in 2021 to further enhance the stickiness of the company's products.
Profit forecast and investment advice. The company's production expansion project for pressure and temperature testing and calibration instruments alleviates the capacity bottleneck, while the MEMS sensor IDM project opens up a new space for the company's medium-and long-term development. It is estimated that the net profit of the company belonging to the parent company from 2020 to 2022 is 73.17 million yuan, 96.53 million yuan and 117 million yuan respectively, and the corresponding PE is 50-38-31 times. In view of the company's excellent texture and great development potential, the company is given a target valuation of 45 times PE in 2021, corresponding to the target price of 20.25 yuan, with a "buy" rating for the first time.
Risk tips: the company's production expansion project is not as scheduled, the MEMS sensor IDM project is not as expected, the company's new product launch is not as expected, Sino-US trade friction, the epidemic affects downstream demand and other risks.