Integrated automation equipment supplier, consumer electronics and semiconductor two-wheel drive
The company is a comprehensive automation equipment supplier with consumer electronics, semiconductors and new energy vehicles as the main downstream application fields. The consumer electronics-related business accounts for more than 80% of the company's total revenue, and the future will benefit from the demand for new automation equipment brought about by the relocation of Apple's foundry production lines and the launch of new products. The semiconductor business expanded after the company acquired Optima. The products are highly competitive and will continue to benefit from the trend of localization substitution in the future.
We predict that in 2023-2025, the company will achieve net profit of 679/8.11/951 million yuan, EPS of 3.39/4.05/4.75 yuan/share, and the current stock price corresponding PE is 20.4/17.0/14.5 times. First coverage, giving a “buy” rating.
The transfer of production capacity from Apple's foundry and the launch of new products brought incremental Apple foundry transfers and MR listings to the company's consumer electronics business, and the remodelling of Airpods boosted the demand for related automation equipment. Apple MR was launched on January 19, 2024. The initial rush to buy has broken expectations, and future sales are optimistic; Apple Airpods are expected to be remodeled in 2024, and the company is expected to benefit; since Apple began actively promoting supply chain decentralization in 2018, Vietnam and India have gradually increased their share of the industrial chain, and now they have become important production bases. In the future, Southeast Asian countries such as India may account for 25% of production capacity, driving corresponding equipment investment demand. The company and Apple have established a long-term and stable deep cooperative relationship. In the future, they will benefit from the transfer of Apple's foundry production capacity and new downstream demand generated by the launch of new products.
The acquisition of Optima opened up the domestic semiconductor inspection and measurement equipment market. The localization rate of domestic semiconductor equipment is low. Testing and measurement equipment is occupied by foreign companies such as Kelei Semiconductor, and its domestic market share reached 54.8% in 2020. The acquisition of Optima in 2019 entered the field of high-end semiconductor inspection. Optima products are highly competitive. Affected by external import restrictions, semiconductor testing and measurement equipment is expected to accelerate domestic replacement, and the company's semiconductor business is expected to maintain rapid growth.
Risk warning: Apple's new product launch falls short of expectations, semiconductor equipment expansion falls short of expectations, and overseas political risks.