Overview of events
The company released the three-quarter report of 2020. In the first three quarters, the company realized income of 1.218 billion yuan / yoy+62.71 and net profit of 149 million yuan / yoy+65.2%, deducting 119 million yuan / yoy+41.27% of non-return net profit.
Analysis and judgment:
The company maintained rapid growth in the third quarter, and the changes in gross profit margin and net profit margin were related to the pace of revenue.
According to the company announcement, the company achieved revenue of 53.6 million yuan / yoy+114.45%, and net profit of 4561.85 million yuan / yoy+51.79%, in the third quarter, continuing the high growth trend of the second quarter. The growth rate of Q3 revenue was 32.01% higher than that of Q2, but the growth rate of net profit decreased somewhat. We judge that the main factors are: 1) benefit from the elasticity of the industry chain of Apple Inc iPhone12, iWatch, TWS headphones and other products. The company's main 3C equipment revenue has increased significantly, which is in line with our previous judgment, and the trend of high growth will be significantly reflected in the fourth quarter. 2) the gross profit margin and net profit margin of the company's Q3 are 42.06% and 8.84% respectively, which is 6.78% and 11.02% lower than that of Q2, respectively. We judge that the main factors for the decline of gross profit margin are affected by the epidemic and the delay of the industrial chain. The company confirmed in Q3 that most of the revenue is the old products with low gross profit margin, and the revenue from new products and equipment will be in the fourth quarter. The larger decline in net interest rates also includes the impact of non-recurring gains and losses such as changes in government subsidies.
The non-public offering program will be terminated, and it is proposed to issue convertible bonds plus 3C and new energy vehicle equipment related business.
The company announced the termination of the previous public stock offering plan, and announced that it planned to issue convertible corporate bonds and raise a total amount of no more than 303 million yuan (including). For new energy auto parts intelligent manufacturing equipment expansion project (Sateng Leo, 62.3 million yuan), vehicle fixture and automation equipment processing project (Sateng Pingcheng, 150 million yuan), supplementary liquidity (90.7 million yuan) At present, Sateng Leo and Seteng Ping Cheng have very sufficient orders on hand, among which Seteng Leo has established a long-term and stable cooperative relationship with customers such as Nippon Electric and Murata New Energy, and its product line includes car motors, new energy batteries and other fields. the company will continue to expand and strengthen related business around the field of new energy vehicles. In recent years, Saitengping's products have been further recognized by customers, and raising funds will help the company to consolidate and enhance its advantages in the field of precision processing and assembly.
In the medium and long term, the company's three business lines are ushered in a good opportunity for development, looking forward to the performance to continue to make great progress.
At present, we think that the company's three major business lines will usher in good opportunities for development. 1) 3C equipment: in terms of iPhone, Lixun is expected to enter the assembly link, and the company has more cooperation with Lixun and is expected to benefit from it; in terms of wearable devices, the company maintains cooperative research and development with Apple Inc's many products, and new products such as electronic glasses and new headphones are also expected to supply. According to our industry chain research, the company's position in Apple Inc equipment industry chain enterprises continues to improve, and the supply category will continue to expand and meet the development opportunities. 2) Semiconductor equipment: the size of the global wafer defect testing market is about US $40-4.5 billion. At present, the domestic market is occupied by KLA and other American companies. Similar domestic competitors are very few, and companies are expected to benefit from the escalation of trade frictions. Optima has repeated orders from international front-line manufacturers and also won the bid at home. We expect it is only a matter of time before we enter the large domestic chip factories, and the domestic market has a good prospect in the future. Drawing on the experience of overseas enterprises, we judge that the company will expand its product line with independent R & D and acquisition. 3) Automotive electronic equipment: the subsidiary Lingou Technology has more cooperation with Nippon Electric to provide the latter with motor assembly equipment, etc. Nissan will build a new factory in Dalian (drive motors for pure electric vehicles, home appliance motors, etc.) with an investment of about 6.5 billion yuan, which is scheduled to be put into operation in 2021. We think the company will also benefit significantly.
Investment advice:
The company is expected to confirm that more new product revenue and net gross profit margin will increase in the fourth quarter. We are optimistic about the high growth of the company for the whole year and the high growth of the three major businesses in the future. The estimated revenue of the company from 2020 to 2022 is 16.22,21.35 and 2.746 billion yuan respectively, and the net profit of homing mother is 2.03,2.9 and 364 million yuan respectively. Taking into account the company's leading position in the assembly and testing equipment link of Apple Inc's industrial chain, as well as its in-depth layout in the fields of semiconductor equipment, automotive electronics, new energy equipment, etc., maintain the "buy" rating.
Risk hint
The overseas epidemic situation is higher than expected; the upgrading of downstream 3C products is not as expected; the order of the company's related products is not as expected.