Core views

A leading domestic electronic soldering equipment company, deeply involved in the industry for many years: Since its establishment, the company has been deeply involved in the soldering equipment industry, growing from a supplier of soldering tools with a single product line to a supplier of intelligent equipment and complete solutions focusing on semiconductors, new energy, and consumer electronics.

AI accelerates the recovery of the 3C industry, and the company's cornerstone business is improving: With the gradual launch of AI phones, Apple is expected to bring about a recovery in shipments through AI innovation, and leading Android manufacturers are also actively launching various AI phones. According to IDC data, the global penetration rate of AI phones is expected to reach 43% in 2027, and China is expected to reach 51.9%. As hardware requirements increase, in order to achieve accurate welding and meet the connection requirements of high-precision electronic components, equipment also needs to be upgraded iteratively. The company has accumulated technology and application experience in the automation and intelligent implementation of processes such as precision welding, dispensing and coating, and visual inspection, and is expected to continue to benefit.

The trend of SiC adoption is clear, and core equipment is expected to be released: SiC's advantages such as temperature resistance, high voltage resistance, and low loss are critical in 800V high voltage fast charging for new energy vehicles. According to data from the “2023 Silicon Carbide (SiC) Industry Research White Paper”, the SiC power semiconductor market is expected to grow to 8.009 billion US dollars (about RMB 56 billion) in 2028. The company has mastered the silver sintering process for SiC packaging and has served 10+ leading power semiconductor IDM, OSAT and Tier 1 manufacturers at home and abroad, with broad prospects.

Deeply cultivate Shantou customers and implement internationalization strategies: The company has accumulated diversified customers such as Apple, Lixun Precision, Ningde Times, and SMIC to provide professional solutions and services, drive the promotion of new products through superior products, have set up wholly-owned R&D, manufacturing, and after-sales subsidiaries in Vietnam, and have also established equipment demo centers and after-sales service systems in India, Mexico, Turkey, Poland, Malaysia and Thailand.

Investment advice: As AI accelerates the recovery of the 3C industry, the company's main business is expected to recover upward, and the semiconductor layout is expected to blossom. The revenue for 2024-2026 is 1.047/1.312/1.535 billion yuan, and the net profit to mother is 0.267/0.341/0.42 billion yuan, corresponding to PE 18.13/14.19/11.52 times, respectively.

Covered for the first time, a “gain” rating was given.

Risk warning: market competition increases risk; risk of technological upgrading and development; risk of bad accounts receivable; risk of falling short of expectations in terminal market prosperity