A leader in the 3C automation equipment industry, innovation-driven to help the growth of platform-based companies Bozhong Seiko is a leading enterprise in the field of intelligent production solutions in the domestic industry. It mainly operates three product lines of automation equipment (lines), jig products, and core components. There is a clear trend in the “machine replacement” industry in recent years. The industrial automation market is growing rapidly, and the domestic market is expected to reach 282.2 billion yuan in 2023. The company is expected to benefit from the development of downstream consumer electronics, new energy and other industries, and the semiconductor business is expected to become the company's second growth curve.
The company's net profit for 2024-2026 is estimated to be 5.10/6.00/686 million yuan, EPS is 1.14/1.34/1.54 yuan, and the current stock price is 16.3/13.9/12.1 times PE, which is covered for the first time, giving the company a “buy” rating.
The industrial automation market space is large. The company is expected to benefit from the recovery in the consumer electronics industry Frost & Sullivan data. According to Frost & Sullivan data, the global industrial automation market is expected to reach 543.66 billion US dollars in 2025, and China's automation and industrial control market is expected to reach 282.2 billion yuan in 2023. Consumer electronics is the company's main downstream industry. The products are widely used in the assembly and testing of a full range of terminal products such as smartphones, tablets, TWS Bluetooth headsets, smart watches, laptops, smart speakers, and AR/MR/VR.
Apple's new product Vision Pro is expected to drive the boom in the consumer electronics industry. Global AR/VR headsets are expected to be shipped to reach 11.23 million units in 2021, and 21.3 million units are expected to be shipped in 2024. The company reached a cooperation with Apple in 2010, and the future is expected to benefit from a recovery in downstream prosperity and opportunities for popular products.
The new energy business is expected to maintain high growth, and semiconductor equipment is expected to become a new growth point for the company. The company is actively exploring the new energy and semiconductor business. New energy: The domestic and foreign lithium battery industry is in a period of expansion. According to GGII data, domestic lithium battery shipments are expected to reach 1,747 GWh in 2025, and global lithium battery shipments are expected to reach 2396 GWh. The company has received a large number of mass production orders for products such as liquid injection machines and high-speed cutting all-in-one machines. The company is deeply tied to NIO in the field of power exchange, and the new energy business is expected to continue to grow rapidly in the future. Semiconductors:
The company has now completed an AOI semiconductor testing equipment prototype and shipped it to United Technology for testing. The semiconductor equipment business is expected to become the company's new performance growth point in the future.
Risk warning: Downstream market sentiment recovery falls short of expectations; dependence on the Apple industry chain is high.