Core ideas:
Domestic semiconductor equipment precision parts leader, with the head customers at home and abroad to grow. The company provides semiconductor equipment enterprises with process parts, structural components, module products and gas pipeline four categories of products; according to the company prospectus, 19-21 international head customer A ranks the company's largest customer, the industry benchmarking effect is obvious; at the same time, in the semiconductor equipment localization trend, the company has the opportunity to enter the North Huachuang, Huahai Qingke and other mainstream customers to grow with customers.
The spare parts market space is big, the company continues to expand the growth curve. According to the data of Semi, Gartner and the company's prospectus, the global and Chinese market space of the company's products in 2022 is US $265 and US $7 billion, and currently accounts for only 0.7% and 1.4% of the global and Chinese markets. The company relies on the underlying technology to horizontally expand the category of metal parts, vertically to the modular direction, while following the head customer layout of products of 7 nm and below, to grasp the direction of advanced semiconductor manufacturing process.
The medium-term goal of equity incentive is clear, and the global capacity layout builds growth confidence. Semiconductor parts is a customer-oriented industry, which needs to be close to the customer's capacity layout. In the company's equity incentive, the CAGR target for 23-25 operating income and return net profit exceeds 35% and 30%. The growth confidence comes from the continuous expansion of production capacity-- the factories in Nantong and Beijing will be put into production one after another in the next five years, and the capacity to be released will reach 4 billion yuan to build a moat of future capacity.
Semiconductors are the top market for manufacturing pyramids, and precision manufacturing territory can be regarded as the star sea of the company.
By virtue of the high technology level, semiconductor enterprises have obvious advantages in expanding to other industries, short breakthrough time and strong profitability. The company has great potential in the field of precision manufacturing. In 22 years, the company's revenue growth rate in the non-semiconductor sector surpassed that of semiconductors, and the company's holding subsidiaries (such as Qianghang Times, Reitre Heat Meter) dabbled in civil aviation parts and other businesses, precision manufacturing growth blueprint gradually unfolded.
Profit forecast and investment suggestions: the company is expected to achieve net profit of 2.63,4.03 and 567 million yuan from 2023 to 2025, with EPS of 1.26,1.93,2.71 yuan per share respectively. Give the company 2023 80xPE, corresponding to a reasonable value of 100.71 yuan per share, given an "overweight" rating.
Risk tips: macroeconomic and industry fluctuation risk, high customer concentration risk, etc.