Motion control system started, focusing on non-metallic material cutting equipment
Aike Technology's main business is intelligent cutting equipment for non-metallic materials, equipped with self-developed precision motion control system and personalized industry application software. The company started from the software, and then cut into the whole machine. After more than ten years of continuous research and development and in-depth mining, it has obtained a total of 22 invention patents and 64 software copyrights. With the self-made core components and customized production attributes, the company has achieved a gross profit margin of nearly 50% and has the core competitiveness.
Limited by insufficient production capacity before listing, the fund-raising and production capacity will be released soon.
The company's revenue growth rate was about 50 per cent before 2018, while its homing net profit CAGR was only 17.8 per cent in 2017-2020, mainly due to insufficient production capacity. The company had an annual production capacity of about 1500 units before it went public and has been in overproduction since 2019. After the IPO investment project has fully reached production, it is estimated that the annual production capacity will reach more than 4000 units. Strong demand downstream of the company, through direct sales and distributors to cover Russia, the Netherlands, Turkey, the United States and other countries around the world, as well as most parts of the country. We expect that with the release of production capacity, the company's revenue scale will enter a new level.
To create standardized popular style products, cut into the blue ocean market of office automation company's traditional products BK, TK series are mainly customized, the equipment size and functionality need to meet the customized needs of customers, and put forward high requirements for the company's supply chain management and flexible production, which objectively leads to the limitation of the company's scale. In 2019, the company launched a specially designed competitive system for office automation, with a single product positioning and standardized production, and the pricing is only 1x3 of the average price of the company's traditional products, which is cost-effective. Customers shift from enterprises to individuals, from large factories to small businesses and even offices.
The competitive series has been widely praised since its launch, and sales are expected to double in 2021, making it a potential major source of sales for the company in the future.
Profit forecast and rating
It is estimated that the company's net profit from 2021 to 2023 is 0.87,1.2 and 157 million yuan respectively, and the corresponding EPS is 1.47,2.04,2.65 yuan per share respectively. According to the latest closing price of 33.5 yuan, the corresponding PE is 23.6,17.1 and 13.1 times respectively. Considering the company's technological leadership and future growth sustainability, the company is expected to maintain rapid growth from 2021 to 2023. According to PEG=1, Aike Technology will be valued 35 times in 2021, with a target price of 50.0 yuan and a "buy" rating for the first time.
Risk hint
The risk of exchange rate fluctuation, the deterioration of overseas epidemic situation and the aggravation of market competition.
