Sino-foreign joint venture background PCB manufacturer, high multi-tier PCB has strong strength, covering for the first time that the "buy" rating company is held by Shengyi Technology, the world's second largest copper clad laminate manufacturer, and it is also the first A-share listed company to be listed on the Kechuang board. The company is a manufacturer with a Sino-foreign joint venture background, has a deep accumulation in the middle and high-end PCB market, and has customer card capacity and product first-mover advantages in the field of DT PCB. In the past, it was restricted by factors such as customer concentration and limited production capacity, and its profitability was lower than that of comparable companies. The split and listing expansion scale laid the foundation for it to undertake core customer orders. We forecast that the operating income of the company in 2021-2023 will be 43.8 million yuan, 56.1 billion yuan, respectively, and the net profit of its parent will be 5.3 million yuan, 74pm, 890 million yuan, and the EPS is 0.63, 0.89, and 1.07 yuan, respectively. The current stock price corresponds to the company's PE of 24.6, 17.4, and 14.5 times in 2021-2023, respectively, and the current stock price will be 14.5 times of the company's stock price in 2021-2023. Taking into account the company's position in the PCB field, 2021H2 is expected to usher in the factory and customer adjusted business improvement, covering for the first time, giving a "buy" rating.
The advantage of high-end PCB in the field of digital communication is outstanding, which belongs to the first echelon communication field in China, which is one of the best subdivision tracks in the PCB industry. The core customers are concentrated and the purchasing volume is large, which is beneficial for PCB manufacturers to cultivate a single customer on a large scale. High-tech barriers bring competition pattern optimization. At the beginning of each round of communication construction cycle, PCB new products have obvious premium dividend. The rise of domestic communication equipment and server manufacturers has forced domestic PCB manufacturers to speed up product matching. The company has outstanding technology in the field of communications, showing the characteristics of small and beautiful, the highest number of layers of mass production of PCB has reached 56 layers, and the average unit price of PCB products in 2020 has reached 4421 yuan per square meter, with Shennan Circuit and Shanghai Power Company ranking the first technical echelon in China.
The 5G wireless side dividend fades, the company is expected to revive with the network equipment PCB iteration, the 5G base station dividend fades, forcing the company's products to shift from the wireless base station side to the core network side construction. AMD and Intel successively launched the PCIe 4.0bus standard chip in 2021H1, which accelerated the upgrading of 2021H2 servers. The company has accumulated a deep cooperation time with Tide and Foxconn server EMS manufacturers, which is expected to benefit from the increase in server demand and product iteration cycle. The company speeds up the research and development of servers, routers and switches, and the advanced technology closely follows the customer's product route. It is estimated that the global market share in the field of global wired infrastructure and server / data storage PCB in 2019 is 1.59% and 0.76% respectively.
Risk hint: the capacity adjustment of the company's Dongcheng and Ji'an factories is lower than expected, the introduction of core network PCB customers is not expected, the price increase of upstream raw materials copper clad laminate erodes profits, and server shipments fall short of expectations.