Leading domestically produced digital X-ray detectors, cutting-edge scientists led the company to grow rapidly. The company is one of the few X-ray detector companies in the world that also master the four major sensor technologies of amorphous silicon, IGZO, CMOS, and flexible substrates and has mass production capabilities. Its strong product strength has won the favor of many leading manufacturers in the medical, dental, and industrial security fields. The company's medical customers include Konica, Siemens, Lianying Healthcare, etc.; the dental sector includes Meiya Optoelectronics, Langshi, etc.; and the industrial sector includes Ningde Era and Zhengye Technology. The company is innovative and loyal to innovation. The core members have industry-leading production management and product development experience. The chairman of the company participated in the establishment of the first second-generation TFT-LCD production line in the US and led the development and manufacture of the world's first digital chest X-ray machine.
The global market for digital x-ray detectors exceeds $2 billion, and the company is on its way to the top. According to Yole statistics, the global X-ray detector market is US$2,079 billion in 2021 and is expected to reach US$2,493 billion in 2027. According to IHMarkit statistics, in 2018, the top five global medical detector suppliers had a market share of more than 50%. According to the company's annual report, the company's global market share of digital detectors reached 16.9% in 2021, an increase of 4 pcts compared to 2019.
Entering the $13.5 billion global market for CT equipment, leading the localization of materials, components, and modules. 1) The company lays out the three core components of CT: ball tube, high pressure generator and detector. According to China Pharmaceutical News, the three core components mentioned above account for more than 60% of CT equipment production costs, such as those that account for CT equipment production costs. According to the procurement network bidding data, the size of the CT equipment market in China is 3.4 times the DR market space. According to the company's 2023 annual report, the company has completed research and development of microfocus tubes, transmission tubes, dental balls and C-arm/DR tubes, of which microfocus tubes have been mass-produced.
2) The fund-raising project will further expand the ball tube market space of 10 billion dollars. The CT ball tube is the most technically difficult component among the three major components. The company has solved technical difficulties such as product simulation design, liquid metal bearing design and manufacturing, and laser texture etching of materials. The company's fund-raising project is fully tackling, and it is expected that it will quickly usher in a breakthrough. 3) Extend to upstream core components to achieve the full chain autonomy and control.
CT detectors are mainly composed of four core components, including collimators, scintillators, photodiodes, and readout chips. According to the company's annual report, in 2023, the company's GOS scintillator key indicators for medical CT detectors reached the leading international level and achieved small-batch production; two-dimensional collimators for security CT and some medical CT have been introduced by domestic customers and entered mass production; the company independently developed CMOS image sensor chips, dental CMOS detectors and TDI detectors used in the X-ray imaging field. The image performance is comparable to imported similar products.
Technology is abundant and underdeveloped, and the display field is expected to break new ground. The company will launch a residual gas analyzer for use in the display and semiconductor fields in 2023. Another company, Hefei Shiya, the founder and chairman of the company, has a deep layout on micro OLED display panels and works closely with many XR manufacturers such as Apple. CMOS detectors and silicon-based OLEDs all involve CMOS technology, semiconductor processes, etc. Based on underlying common technology and new products, the company is also expected to enter the micro OLED field and open up new growth space.
Investment advice: The company is at the forefront of the world in the field of X-ray detectors. In recent years, the company has deployed three core CT components, the market space has increased dramatically, and a second growth curve has been formed. We expect revenue for 2024/2025/2026 to be 2,425/31.13/3.799 billion yuan respectively, achieving net profit of 8.22/10.50/1.01 billion yuan, corresponding EPS of 8.06/10.29/12.76 yuan/share, respectively, and PE 26/21/17 times, covered for the first time, giving a “recommended” rating.
Risk warning: Risk of R&D progress falling short of expectations; risk of product promotion falling short of expectations.