Deep ploughing precision metal structures to create precision metal manufacturing "one-stop" service. The company has been ploughing precision metal structural parts for more than ten years, and the current products are mainly concentrated in the field of consumer electronics, including the shell, middle frame, medium plate, button, logo, hinge, etc., of terminal products such as smart phones, laptops, tablet computers, smart headphones, smart speakers, etc. In addition, the company's medical device products include structures for terminal products such as scalpels, bone nails and pacemakers; e-cigarette products include metal stents and some appearance parts; and some process services for liquid crystal display panels. The company has a rich product line, which can meet the requirements of precision metal manufacturing "one-stop" service in many industries.
Consumer electronics industry 5G penetration + terminal innovation, precision structural components welcome new opportunities. Precision structural parts are an indispensable part of intelligent terminal products. In the 5G era, the innovation trend of consumer electronics terminals starts again, and precision structural components welcome new growth opportunities. The rapid popularization and commercialization of 5G provides fertile soil for the development of Internet of things, cloud computing and other technologies, leading to a new round of changes and iterations in the form and experience of smart terminals, including smartphones, laptops, tablets, smart wearable computers and so on. The rapid development of intelligent terminal industry has put forward higher and higher requirements for the characteristics of miniaturization, high precision and high texture of parts, and the product types and models of intelligent terminal parts are also more abundant and diverse. With the penetration of new product forms and the rise of a new wave of new trends, the precision functional devices industry has ushered in new growth opportunities.
The appearance of e-cigarettes is metallized, and the demand for medical devices is growing steadily. The company provides heating non-combustible e-cigarette bracket and shell, the layout of e-cigarette is making rapid progress. The company launched the layout of high-end e-cigarette products in 2018, mainly providing metal structure brackets, shells and other products for e-cigarettes, which were successfully introduced into the customer supply chain of international well-known heating and non-burning e-cigarette brands. Yuancheng Electronics, which the company acquired in 2018, provides precision die-casting and other technical support for the company's heating and non-combustible e-cigarette business. The scale of the global medical device market is growing steadily, and the domestic scale growth rate is significantly higher than the global level.
With the social and economic development and the gradual improvement of people's health awareness, it will significantly boost the demand for drugs and medical services, and ultimately drive the steady growth of the medical device market. The company has a number of core technologies in medical devices and other fields, which lays a good technical foundation for the company to obtain more orders and rapid development in the future.
Turn losses into profits in the first three quarters, and the performance in 2020 is expected to be fully reversed. In the first three quarters, the company realized operating income of 2.492 billion yuan, an increase of 82.45% over the same period last year. The net profit attributable to shareholders of listed companies was 75.1373 million yuan, compared with a loss of 69.4795 million yuan in the same period last year. Mainly benefit from 1) the rapid expansion of PC revenue, high investment to lay the foundation for high growth. The company's domestic brand PC products maintain a high shipping level, and it is expected that PC will become the largest revenue increment in 20 years. 2) the business situation of major customers continues to improve. Over the past 20 years, the company has participated in a number of major customer businesses, and its share has been significantly increased. 3) the tablet business is expected to grow rapidly.
Profit forecast and investment advice. We estimate that the operating income of the company's 2020E/2021E/2022E will be 31.91 million yuan, and the net profit of the company will be 1.62 million yuan. Comparable company 2021E has an average price-to-earnings ratio of 32.0x, while Corson Technology shares currently have a valuation advantage of 27.2x corresponding to 2021E, with a "buy rating" for the first time.
Risk hint: downstream demand is lower than expected, industry competition intensifies.