Main points of investment:
The company is the target of domestic embedded intelligent instrument module scarcity, which is deeply bound to Apple Inc industry chain. The company is mainly engaged in the design, R & D, production and sales of industrial automation testing products such as embedded intelligent instrument modules. The company is deeply bound to Apple Inc's industrial chain. The income from 2018-2021H1's products eventually used for Apple Inc's product testing accounts for 94.72%, 85.03%, 90.85% and 91.97% of the operating income. In addition to Apple Inc, the company is also a qualified supplier to Amfino, Facebook, Tokyo Electronics, Suole and other companies.
The downstream application space of the modular testing instrument is broad and the competitors in the track are less beneficial to the development of the company.
From the perspective of market space, with the continuous improvement of software, hardware and core algorithms and other technologies, modular testing instruments can not only be used in semiconductors and electronics, communications, national defense and aerospace, automotive electronics and other fields, but also can be embedded in other industry-specific instruments as a core detection module, such as chemical analysis instruments, biomedical instruments and so on. ② from the perspective of competition pattern, American National Instruments is the industry leader, and foreign traditional instrument enterprises such as German Science and Technology, Rhodes and Schwartz are transforming to modular instruments; the domestic enterprises engaged in modular testing instrument industry are relatively few, and the scale is generally small, and the company has formed certain technical barriers after years of technology accumulation, and the development prospect is good.
For Apple Inc's business, the company will continue to expand the market share of other links of the industrial chain. The company officially became a qualified supplier of Apple Inc Company in November 2017. at present, the products certified by Apple Inc Company include controller series, digital sampling series, digital multimeter series, power series, electronic load series, audio detection series and so on. And the cooperative product line has basically covered all types of Apple Inc's consumer electronics products. But the company's products in Apple Inc industrial chain are mainly used in PCBA function testing, the next step the company will continue to expand Apple Inc industrial chain other links: the company has been involved in the whole machine product function testing, module testing, semiconductor and integrated circuit testing and other links, and for PCBA online testing (ICT), discrete electronic components and PCB testing, radio frequency testing and other testing links also carried out related technology research and development and technical reserves.
For non-Apple Inc business, the company has also carried out technical reserves and accumulated high-quality customers, which can be developed in the future. In addition to consumer electronics, automotive electronics, medical electronics, aerospace and national defense products, high-end equipment manufacturing industry, communications and network and other fields have a high market demand for embedded modular testing schemes. Combined with its own technical characteristics, the company has carried out long-term continuous technical research and development in electrical signal detection and visual inspection, forming a technical reserve with independent intellectual property rights in many fields. At the same time, the company has also established cooperative relations with non-Apple Inc customers such as VIVO, Facebook, Soller, Tokyo Electronics, Amazon.Com Inc and so on.
Profit forecast, valuation analysis and investment advice: it is estimated that the company's operating income in 2022-2024 will be 2.89,3.91 and 505 million yuan respectively, with growth rates of 29.9%, 35.4% and 29.3% respectively, and net profit of 0.87,1.18% and 150 million yuan respectively, with growth rates of 31.1%, 36.1% and 27.1% respectively, corresponding to EPS of 1.30,1.77,2.25 yuan respectively. Based on the closing price of 41.40 yuan on December 16, the corresponding PE is 31.9X, 23.4X and 18.4X, respectively. Considering that 1) the downstream application space of the modular testing instrument is broad and the competitors in the track are less beneficial to the development of the company; 2) the company is deeply bound to Apple Inc's industrial chain and continues to expand non-Apple Inc customers such as VIVO, Facebook, Soller, Tokyo Electronics, Amazon.Com Inc, etc. 3) the company is the target of the scarcity of domestic embedded intelligent instrument modules. We are optimistic about the future development of the company, but considering that the company's performance is greatly affected by Apple Inc, it covers the company for the first time and gives the company a "buy-B" rating.
Risk hints: the risk of high dependence on Apple Inc's industrial chain; the risk of a large gap with foreign modular testing program providers in terms of income scale and technology; the risk of differential competition between modular testing instruments and traditional instruments; the risk of chip supply shortage.
