PCB Micro tools Global leader, High-end CNC tool Integration Open growth Space company specializes in providing integrated solutions for PCB and other industries such as tools (drilling needles, milling cutters and other CNC tools), materials (brush grinding wheel, functional film) and intelligent equipment. The company has great potential for growth: (1) the average unit price of the core product PCB drill needle (72% 2022H1) has increased. (2) self-research on core equipment and key technology to raise investment in the new unmanned factory to improve human efficiency. (3) the release of production capacity and the increase of market share (PCB drill needles ranked first in the global market share by sales volume in 2020, 19%). (4) functional membrane products open the second growth curve in the field of Mini-LED and new energy vehicles. (5) the numerical control tool equipment replaces the import, under the premise of meeting its own demand, the production expansion demand of the external sales adaptation industry. We predict that the company's revenue from 2022 to 2024 will be 1.254 billion yuan, net profit 2.40 million, net profit 0.58 million, EPS 0.81 million, and current stock price 38.0 / 27.4 / 18.9 times of PE. Cover for the first time, giving a "buy" rating.
Drill needle industry pattern is stable, the company self-research can completely replace the imported core equipment, drill needle continues to high-end PCB industry economy bottom, is expected to recover. The increase of the number of PCB layers, the increase of wiring density and the change of plate lead to the acceleration of needle changing frequency, which makes the consumption of PCB drill needle increase greatly. 0.2mm below high-end PCB drill needle and high-end coated drill needle for high-prosperity IC carrier board and other fields, the proportion continues to expand. The company uses self-research equipment to mass-produce high-end PCB drill needles, is the only domestic coating process, coating equipment all self-research manufacturers, the cost of the end compared with the outsourcing significantly reduced, strong technical strength to create a moat. The company's high-end PCB drill needle production capacity after the release of market share, superimposed equipment, process self-research to reduce costs and efficiency, the profit end is expected to continue high growth.
The integration of high-end CNC tools opens the growth space, and the membrane products open the second growth curve downstream of Gaojing. The company is a scarce domestic high-end CNC tool manufacturer, benefiting from the extensive downstream of PCB, the application field is expanded from 3C to aerospace, automobile and so on. The company upward integrates self-developed CNC tool production equipment and sells to the outside world, reducing costs and increasing efficiency while creating new revenue growth points and opening up growth space. Based on the advantage of customer resources, the company develops high-performance functional membrane products for Mini-LED, new energy vehicles and other fields, is expected to open the second growth curve.
Risk tips: semiconductor cycle downward, drill needle technology has been replaced, the company's production capacity climbing progress is not as expected.