Core views:

A leading company in high-reliability sensors and sensor network systems. The company is mainly engaged in R&D, design, production and sales of high-reliability sensors (including MEMS sensors). The main products include pressure/temperature/humidity/acceleration/displacement sensors, etc., and is actively developing the field of sensor network systems to expand the broad IoT market. The company's core products have the characteristics of high reliability, good consistency and high degree of integration. The company has long received attention from aerospace customers, successfully participated in manned space engineering project support, and has gradually been used in high-reliability fields such as aviation, weapons, and rail transit. The company will benefit fully from the rapid development of the aerospace field and the high prosperity of the industrial Internet of Things construction.

Core investment logic: (1) At the end of the pattern, the company is deeply involved in the high-reliability sensor business field, with a high degree of industrial chain integration, card design, and packaging of high-barrier links; rich product lineage, covering aerospace and high-end civilian goods, widely used in aerospace, rail transit, construction machinery and other industries, with high market recognition; (2) in the aerospace field, equipment modernization is currently the main growth point, and sensors are the key devices for monitoring rocket launches. The company is expected to establish cooperation and supporting relationships with many state-owned enterprises and private space companies in the future. arrow Launch rapidly growing demand; (3) In the field of the Industrial Internet of Things, sensors are a core part of the Industrial Internet of Things. Benefiting from the continuous development, maturity and application of the Industrial Internet of Things, there is room for expansion of the company's high-reliability sensor business for civilian use.

Profit forecast and investment recommendations: The 2023-2025 EPS is expected to be 0.86/1.21/1.59 yuan/share, respectively. Taking into account that the company is deeply involved in the sensor field, it is expected to benefit from the development of modern commercial aerospace equipment and industrial IoT technology. The industry is very prosperous. Referring to comparable company valuations, the company was given a PE valuation of 40 times over 24 years, corresponding to a reasonable value of 48.21 yuan/share, giving it an “increase in holdings” rating.

Risk warning: risk of loss or shortage of R&D personnel, risk of high customer concentration, risk of major industry policy adjustments.