Coordinated development of new and old business, steady growth of performance
The company's traditional business is electronic equipment, and in 2016 it extended the product field to optoelectronic module production equipment. In 2018, the company achieved 590 million in revenue, an increase of 23.64% over the same period last year; the net profit belonging to shareholders of listed companies was 90.9783 million yuan, an increase of 13.25% over the same period last year. Of this total, the sales revenue of electronic assembly equipment reached 480 million yuan, an increase of 7.34 percent over the same period last year, and the sales revenue of optoelectronic module production equipment reached 90.9691 million yuan, an increase of 658.33 percent over the same period last year. The revenue of optoelectronic modules accounted for 15.40% of the company's total sales revenue in 2018, an increase of 516% over 2017.
Optimize product performance, promote new product research and development, and consolidate the leading position of electronic assembly equipment industry
The competition situation of the domestic electronic equipment industry presents a two-level differentiation pattern, and the company is the leading enterprise in the domestic electronic welding equipment industry. 1) in terms of electronic welding equipment, the company promotes lean production, optimizes the performance and intelligently upgrades the electronic welding equipment to enhance market competitiveness. In 2018, while the growth rate of the downstream industry slowed down, the electronic welding equipment business still achieved a growth rate of 6.62%. 2) in AOI testing equipment, the company introduced big data and artificial intelligence into the application of AOI testing equipment, and actively expanded the application field of optoelectronic testing equipment. Since 2016, the company's AOI testing equipment high-end models have been recognized in the market, and the revenue has increased year by year.
Biometric and camera module production equipment help open optoelectronic market
Benefiting from the rise and popularity of comprehensive screen mobile phones and the vigorous development of the 3C electronic multi-camera market, in 2018, the company's biometric module production equipment and camera module production equipment were recognized by the industry and purchased by downstream mainstream customers, achieving sales revenue of 12.6964 million yuan and 73.4298 million yuan respectively, further improving the company's overall performance.
OLED flexible screen related 3D laminating equipment breaks the monopoly of foreign technology and ushered in the inflection point of domestic substitution.
The company broke through the bottleneck in the development of 3D laminating equipment related to OLED flexible screen, completed the production of a prototype of 3D-Lami laminating equipment, and has been identified as the winning bidder of the sixth generation AMOLED (flexible) production line project in Mianyang BOE. The total amount of the two winning bids is RMB 170.1875 million, accounting for 28.81% of the company's operating income last year. After signing a formal contract and smooth implementation of the winning project, it will have a positive impact on future business performance.
Profit forecast
We predict that the company's 2019, 2020, and 2021 return net profit will be 141.52, 176.40, 211.56 million, corresponding to a PE of 25.52, 20.48, 17.07 times, giving the company a target price of 15.6, with a "buy" rating.
Risk hint: downstream electronics manufacturing industry is depressed, industry competition intensifies, and performance growth falls short of expectations.