\u3000\u3000 Suntak Technology Co.Ltd(002815) (002815)
The non-public offering plan aims at batch high-end PCBs, steadily advances the strategic transformation, and maintains the “buy” rating
The company announced the non-public offering plan and raised 2 billion yuan to invest in the new circuit board project (phase II) of Zhuhai Chongda Circuit Technology Co., Ltd. The number of shares to be publicly issued this time will not exceed 262 million (including this number), and the total share capital is expected to increase to 1.14 billion. Jiang Xuefei and Zhu Xuehua are still the actual controllers of the company, with a total shareholding ratio of no less than 48.6%. We maintain the previous profit forecast. It is estimated that the operating revenue of the company from 2021 to 2023 will be 6.21/75.4/8.63 billion yuan, the net profit attributable to the parent company will be 6.5/8.5/1.04 billion yuan, the corresponding EPS will be 0.74/0.97/1.18 yuan, and the PE will be 18.1/13.8/11.3 times, maintaining the “buy” rating.
Zhuhai plant is the main plant for subsequent capacity release, and sufficient customer reserves lay the market foundation
Zhuhai Chongda new circuit board project adopts the phased construction method, with an annual design capacity of 6.4 million square meters. It is planned to be promoted in three phases. It is the main project of the company’s current production expansion. Zhuhai factory phase I construction project has been officially put into trial production in 2021q2, focusing on the development of optoelectronic, automotive and computer PCB products. This non-public offering is the second phase of the project, with a construction period of 24 months. After reaching the production capacity, it is expected to increase the annual production capacity of 1.08 million square meters of high-rise multilayer board and 420000 square meters of HDI board. In the past, the company was subject to small and medium-sized batch orders, with relatively limited production capacity and site, and lack of production capacity for mass production of high-end PCB. It is expected that the expansion of Zhuhai factory will further improve the production capacity of high multilayer board and HDI board, improve product structure and enhance market competitiveness. Zhuhai phase II plant will further meet the needs of major customers in the industry and incubate existing customer orders.
Get out of the niche market of small and medium-sized PCB and usher in the dilemma reversal
The company has gradually stepped out of the niche market of small and medium-sized PCBs, adopted the big customer strategy and actively expanded the Chinese market. In the process of transformation, the company overcame the two major problems of changing its business strategy from technology driven to cost driven and direct selling customer reserve, and ushered in the inflection point of single quarter performance in 2021q3. The company has the experience of high-end customized orders in small and medium batches, and is expected to further expand its process capability to the medium and large batch market. It is expected to benefit from the market increment brought by the iteration of communication server products. The company’s HDI and IC carrier products have layout, or will benefit from the PCB high-density trend brought by chip upgrading and the wave of localization and substitution of IC packaging substrate.
Risk tip: the price increase of raw materials erodes the cost, the downstream demand is less than expected, and the yield of high multi-layer PCB is less than expected.
