Benefit from the linear drive industry Dongfeng, the company's growth and business quality are excellent. Founded in 1992, the company provides transmission and intelligent control solutions for global smart home, smart office, auto parts, medical care, industry and other industries. Benefiting from the rapid development of the global linear-driven industry, the company's operating income grew at a compound growth rate of 32.5% from 2015 to 2019, and its mother's net profit grew at an annual compound growth rate of 26.3%. The operating cash flow is abundant, and the asset-liability ratio maintains a downward trend.
Smart home accounts for 70% of the company's revenue, and the fields of smart office, auto parts and medical care are expanding rapidly. Smart home is the company's main source of revenue. In 2019, smart home drive system revenue accounted for 69.5%, gross profit accounted for 71.4%; smart office drive system revenue accounted for 26.1%, gross profit accounted for 24.4%; electric tailgate drive system revenue accounted for 3.4% of the total revenue in 2019, gross profit accounted for 2.5% In 2019, health care drive system revenue accounted for 0.6%, gross profit accounted for 0.7%.
Benefit from the upgrading of consumption, linear-driven permeability has a broad space to improve. Linear drive products are used for supporting intelligent terminal equipment, and are widely used in smart home, intelligent office, medical care and other fields. With the trend of aging population and the improvement of salary and treatment, people's demand for the convenience of life is increasing, and the penetration rate of linear-driven products is increasing. According to our estimate, the global linear drive market will reach 45.6 billion yuan in 2019, and the global market is expected to reach 61 billion yuan in 2022.
The product quality of the company is stable, and the industrial chain is constantly improving. Referring to overseas leading companies, electric putters are widely used downstream. Based on the household field, the company tends to mature in the aspects of production scale, design process, manufacturing technology and product quality, gradually expand the product application field and customer scope on the basis of consolidating the existing market share, and constantly increase R & D investment. improve the company's industrial chain.
Expand the production line, alleviate capacity bottlenecks, launch equity incentives, and enhance the competitiveness of enterprises. As the fund-raising project is put into production in the future, the company will expand at least four production lines in the future to alleviate the restrictions caused by the company's insufficient production capacity. In October 2020, the company launched a restricted equity incentive scheme to further enhance the competitiveness of enterprises.
Profit forecast. It is estimated that the diluted EPS of the company from 2020 to 2022 will be 3.64,5.04,6.87 yuan per share respectively. Considering that the company's products have more room for development, combined with the situation of comparable companies, the company will be given 38-45 times PE in 2020, corresponding to a reasonable value range of 138.32-163.80 yuan, with an investment rating of "better than the market".
Risk hint: overseas market customer development is not as expected, RMB appreciation.
