As an excellent EMS provider in domestic and foreign markets, with steady revenue and profit growth, the company is an electronic manufacturing service manufacturer mainly facing global high-end customers, covering industrial control, communications, medical, consumer electronics and automotive electronics five major application fields, based on independent research and development of supply chain management system, to provide global customers with high-quality, multi-variety, fast and flexible electronic manufacturing services.
21Q1 achieved an operating income of 365 million yuan, an increase of 55.47% over the same period last year, and a non-return net profit of 42 million yuan, an increase of 167.69% over the same period last year. The gross profit margin of 21 Q1 company reached 27.87%. According to NewVenture Research data, the company is the fastest growing EMS company in the world from 2011 to 2019, ranking 81st among global EMS manufacturers. With the continuous deepening of the accurate management of the company's supply chain and the release of new production capacity, the company's profitability and quality have been gradually improved, and there is still much room for business expansion.
EMS has a large space for the industry and a high market share in the Asia-Pacific region, benefiting from the downstream market demand. According to a report by professional research firm New Venture Research, the global revenue from electronic manufacturing services in 2019 is 555.3 billion US dollars. It is expected that the global revenue from electronic manufacturing services will reach 724.2 billion US dollars in 2024, and the market capacity is huge. Major global participants include Hon Hai, Pegatron, Flextronics and other enterprises. The Asia-Pacific region, represented by China, accounts for more than 70% of the global market. EMS has a broad application prospect, and the market demand benefits from the renewal iteration of industrial control, communications, medical, consumer electronics and automotive electronics, as well as the continuous expansion of scale. With the increase of consumer demand for electronics in China, production capacity begins to transfer to China, which leads to the increase of EMS business, which provides a broad market prospect for local electronic manufacturing service manufacturers.
Differentiation strategy deeply ploughs the market, customized R & D to create characteristic competitive advantage, the performance is expected to grow at a high speed, the global electronic manufacturing service industry market capacity is huge, the business differentiation demand is significant, the company adopts differentiation strategy, positioning "small batch, multi-variety", order production and management model has brought the rapid growth of the company.
The company has three core competencies: first, through research and development, continue to enhance the company's core innovation.
Second, independent development of supply chain management system, accurate management of supply chain, high response speed. The company's current production management involves more than 4200 products and more than 60000 raw materials to meet customer delivery needs. Third, make use of the advantage of platform resource integration, flexibly deploy the production line to meet the customized needs of customers, and provide manufacturing services for more than 200 domestic and foreign customers with good growth.
Earnings Forecast, valuation and rating
The company has outstanding technological competitiveness in the field of EMS, customized strategy deeply ploughs the EMS market, and future growth is expected. We estimate that the operating income of the company from 2021 to 2023 is 17.16,22.86 and 3.063 billion yuan respectively, and the net profit is 2.29,3.1 and 413 million yuan respectively. For the first time, coverage gives a "recommended" rating.
Risk tips: the expansion of new customers is not as expected, the research and development of new products is not as expected, and so on.
