Deeply cultivate the field of strain gauge sensors and open up a new space for the industrial Internet of Things. Coli Sensing was founded in 1995. As a leading enterprise of adaptive sensors in China, the company has built an integrated solution for the industrial Internet of Things by consolidating core products such as hardware-layer multi-physical sensors and weighing instruments, and has achieved transformation and upgrading around the IoT strategy. The downstream of the company mainly covers weighing equipment customers in transportation, metallurgy, construction machinery, etc., and is actively developing new customers in non-weighing equipment fields such as marine engineering, petrochemicals, and health care.
Strain sensors are booming, and six-dimensional force sensors are expected to usher in a period of rapid growth. Strain sensors are one of the core key components of China's “strong foundation project”. The market scale continues to expand, reaching 3,057 billion yuan in 2022. As the highest-dimensional force sensor, the six-dimensional force sensor has high technical and production barriers; according to GGII estimates, the sales volume of six-dimensional force sensors in the Chinese market is expected to exceed 6,700 units in 2023, with a year-on-year growth rate of nearly 40%; combined with the demand for downstream application layer industrial robots, humanoid robots, etc., the market size is expected to maintain rapid growth. Manufacturers such as ATI, Coli, and Kunwei are speeding up the development of six-dimensional force sensors. With the diversification of technology routes, the improvement of product matrices, the decline in product costs, and the increase in the localization rate, the six-dimensional force sensor is ushered in a golden period of booming development.
Based on strain gauge sensors, endogeny+epitaxial broadens the product matrix. In the domestic market, the company has been the mechanical sensor brand with the largest market share in the country for many years; in the foreign market, the company has implemented a differentiated brand strategy, has a high level of popularity, and its share of overseas revenue continues to increase. The company promotes a strict quality management system and high-intensity R&D investment. Strain gauge sensors have obtained many measurement certifications such as OIML, NTEP, and CE, and have leading performance indicators. Through the “endogeny+extension” approach, the company broadened the sensor product matrix horizontally and vertically, invested horizontally in Yipuxing and Chicheng Electric, promoted the layout of products such as gas sensors and grating sensors, and gradually entered the non-weighing equipment market vertically. The company's self-developed multi-dimensional force sensors, such as three-dimensional force and six-dimensional force, are already in the small-batch trial production stage. They have characteristics such as high accuracy, high sensitivity, strong partial load resistance, and low interdimensional coupling, and can be applied to high-precision scenarios such as robot arm movements and medical equipment.
The Internet of Things drives innovation in traditional industries and moves towards integrated solutions. With industry as the core downstream application, the Internet of Things actively promotes the development of traditional manufacturing in the direction of intelligence. As the first enterprise to carry out IoT business layout in China, the company has accumulated rich resources such as key technologies, marketing channels, and application cases; the company has successively established the top ten industrial IoT divisions, and related systematic solutions such as industrial robots, hoisting machinery, and warehousing have been successfully implemented, starting a second growth curve.
Investment suggestions: We expect the company's revenue for 2023-2025 to be 1,250 million yuan, 1,490 million yuan, and 1,821 million yuan respectively; net profit to parent income of 313, 3.86, and 484 million yuan respectively; and EPS of 111, 1.37, and 1.72 yuan respectively.
Sifang Optoelectronics, Suao Sensing, Xiangshan Co., Ltd. and Optoelectronics in the same industry were selected as comparable companies. Combined with the industry average valuation, considering that ① Company is the mechanical sensor brand with the highest market share in the country for many years, and its products have obtained major international and domestic certifications in the industry; the company has broadened the product matrix horizontally and vertically, and the self-developed multi-dimensional force sensors are already in the small-batch trial production stage, which is expected to be rapidly released along with the development of emerging industries. ② The company has set up ten major IoT divisions. The products have been successfully implemented in multiple application scenarios. Relevant technologies, marketing channels, application cases, etc. are fully reserved, and are expected to pass “endogeny+extension”
Continuously expand the scale of business and achieve a rapid increase in market share. It was given 38 times PE in 2023, the corresponding target price was 42.2 yuan, and the target space was 31%. It was covered for the first time, and a “strong push” rating was given.
Risk warning: market competition; inventory price decline; price fluctuations of major raw materials; changes in the international market.