Main points of investment
Deep ploughing the global EMS market, the performance starts the rapid growth: the company deeply ploughs the EMS market, EMS products cover five major application fields of industrial control, communications, medical electronics, consumer electronics and automotive electronics, and can provide global customers with high-quality, multi-variety, fast and flexible electronic manufacturing services. The number of high-quality customers and product categories in the global market segment have achieved rapid growth. In particular, the significant improvement of medical and automotive electronic customer business has led to the rapid growth of the company's performance and the continuous improvement of profitability.
EMS has a broad market space, diversified applications enhance EMS market demand: under the trend of specialization in the global electronics industry, Electronic Manufacturing Services (EMS) arises at the historic moment, and continues to expand value-added service projects, including product design, supply chain management and after-sales service, gradually to provide complete supply chain solutions, has become an important part of the global electronics industry chain. The application market of EMS is very broad. The continuous expansion of the market scale of industrial control, communications, medical, consumer electronics and automotive electronics and the upgrading of various electronic products have brought stable service demand for EMS, thus promoting the sustainable development of the EMS market. At the same time, with the continuous enhancement of the comprehensive strength of China's electronic manufacturing industry and the continuous improvement of the consumer market demand for electronic products, the major global electronic brands have entered China one after another, and transferred more and more production capacity to China at the same time, which has significantly led to the increase of EMS business, which provides a development opportunity for domestic EMS companies to enter the supply chain of international brands.
Customized R & D to enhance the competitiveness of EMS, fully benefit from the rapid development of the EMS market: the company locates a small batch, multi-variety product strategy, and currently forms a rich product reserve in the field of EMS. The advanced SMT production line can adapt to the PCBA production needs of different sizes, specifications and materials, and has the leading production efficiency and quality in the industry. At the same time, on the basis of relatively perfect EMS product categories, the company continues to expand value-added service links such as product research and development, manufacturability analysis, test and development, on the one hand, strengthen the technological leadership of manufacturing equipment and process technology, and enhance the company's core competitiveness through customized R & D and design of products, on the other hand, promote lean management oriented to supply chain and production, and gradually build a significant market leading advantage. Under the differentiated market competition strategy of small batch and multi-variety, the company can provide electronic manufacturing services of more than 4000 products to more than 200 high-quality customers around the world, which is expected to fully benefit from the rapid development of the EMS market.
Profit forecast and investment rating: the company has outstanding technological competitiveness in the field of EMS and steady market expansion, which is expected to fully benefit from the increasing demand for electronic products in the downstream industrial control, communications, medical and other markets. It is estimated that the revenue of the company 2020Universe 2021 in 2022 is 13.06max 17.02 / 2.237 billion, an increase of 27.2%, 30.3%, 31.4%, and the net profit is 1.66, 2.35 / 310 million, respectively, an increase of 30.4%, 41.5%, 32.2%, and an EPS of 1.04, 1.47, 1.94 yuan, corresponding to PE, which is 20-14-11 times. With reference to the company's average 2021 valuation (21 times), and considering the company's multi-variety layout and broad growth space in the EMS field, Yi Delong is given a 21-fold target PE in 2021, with a target price of 30.87 yuan, covered for the first time and given a "buy" rating.
Risk tips: market demand is not as expected; new product launch is not as expected; customer development is not as expected.
