The company is a high-quality 3C automatic enterprise, the main products include radio frequency, acoustics, electricity, optics, vision and other automatic testing equipment, as well as automatic assembly equipment. Customers include world-famous high-tech companies such as Apple Inc, Microsoft Corp, Cisco Systems, Qualcomm Inc and Alphabet Inc-CL C, as well as world-renowned electronics manufacturers such as Hon Hai Group, Quanta Group, Compal Group, Pegatron Group and BYD. From 2015 to 2020, the company's operating income and return net profit CAGR were 28.4% and 69.8% respectively. In the first three quarters of 2021, due to the influence of a high base, the company's performance decreased compared with the same period last year, with operating income and net profit of 911 million yuan and 230 million yuan respectively,-15.7% and-25.2% respectively compared with the same period last year. With the recovery of the industry and the rapid growth of radio frequency and vision business, the company is expected to meet rapid development.
Main points:
The bearing of 3C equipment will be good in 2022. The 3C equipment industry has shown an obvious 2-3-year industry cycle in the past few years. With Apple Inc's innovation cycle, the continuous growth of wearable sales, and the possible launch of Apple Inc's AR/VR glasses to boost the industry's prosperity, the 3C automation industry is expected to improve in 2022, with the company's business covering radio frequency, acoustics, electricity, optics, visual inspection equipment and assembly equipment. And the competitive advantage in the subdivision field is strong, with the improvement of the industry boom, the company is expected to meet the rapid development.
The continuous penetration of 5G promotes the rapid development of the company's radio frequency testing equipment. RF testing equipment includes shielding box, network analyzer, comprehensive tester, spectrum analyzer and so on. The testing content generally includes MLB testing, OTA testing, communication protocol testing and authentication, etc. 5G RF uses large-scale antenna array technology, the number of circuits and antennas of its RF module has increased, and the test items are more and more difficult, so the demand quantity and price of 5G RF detection equipment will increase. The company's 5G radio frequency testing equipment is in the leading level, with the continuous penetration of 5G, the company's radio frequency testing equipment has developed rapidly.
The company's visual inspection business ushered in rapid development. The machine vision track is of high quality and is in an explosive period. according to the China Machine Vision Industry Alliance, the sales of China's machine vision industry are expected to grow at a compound growth rate of 27.15% from 2020 to 2023, and sales are expected to reach 29.6 billion yuan in 2023. The company develops visual inspection equipment with visual technology as the core, and its Odwell has entered the fifth-sixth year of product incubation, and the performance of its six-sided testing equipment has reached a leading level. In addition, the company has also successfully developed AOI glass appearance testing equipment for consumer electronics cover glass defect detection. It is expected that the company's visual inspection business will usher in rapid development.
The company's core competitiveness is strong, and the layout of the semiconductor field contributes to the long-term development. The company attaches importance to research and development, and the R & D expenditure rate is maintained at about 10%. At the same time, the customer resources are of high quality, and the company has accumulated profound process understanding and experience in long-term cooperation, with strong core competitiveness. In 2020, the company participated in Dingtai Core Source, coordinated with the business layout of the company's semiconductor field, and in 2021 the company issued convertible bonds to expand production and increase the size of semiconductors to help the company's long-term development.
Investment suggestion: we estimate that the company's revenue in 2021-2023 is 1.2911640 / 1.956 billion yuan, and the net profit of home ownership is 3.06 million yuan, corresponding to EPS 2.81 million yuan, and corresponding to the closing price of 57.26 yuan per share on December 17, 2021, the PE is respectively times that of 26-20-17, considering that the prosperity of 3C automation industry is good in 2022. At the same time, the company's radio frequency testing and vision business is expected to meet the rapid development, covering for the first time, giving a "buy" rating.
Risk tips: the prosperity of the industry is not as expected, technology research and development is not as expected, and so on.