\u3000\u3000 Uni-Trend Technology ( China) Co.Ltd(688628) (688628)
The first brand of electronic and electrical instruments in China has sufficient endogenous driving force for performance growth. The company has focused on the production, R & D and sales of testing and measuring instruments for 33 years. Now it has developed into a leading company of electronic and electrical instruments in China. The company continues to increase the layout of instruments and meters. At present, its main business includes electronic and electrical test instruments, temperature and environment test instruments, power and high voltage test instruments and test instruments. Its products are widely used in electronics, household appliances, electromechanical equipment, energy conservation and environmental protection, rail transit, automobile manufacturing, 5g new infrastructure, new energy and other fields. The continuous development of a number of businesses has also brought a strong driving force to the company’s performance growth. From 2017 to 2020, the company’s revenue and net profit attributable to its parent increased by 30.24/74.95% in four years, maintaining rapid growth.
The performance concerns in the post epidemic dividend period gradually dissipated. The logic of the company’s long-term growth is gradually clarified. Under the influence of the epidemic in 2020, the sales volume of the company’s epidemic prevention products increased rapidly, and the revenue and profit of the temperature and environment business increased significantly. The epidemic prevention bonus period faded in 2021, and the company’s temperature and environment revenue fluctuated greatly. However, compared with the income of epidemic prevention products, the company’s other main revenue is still expected to achieve double-digit growth in 2021, The concern about the performance caused by the sharp decline in the income of medical products has gradually dissipated, and the company’s long-term growth logic has been clear: 1) with the steady growth of electronic and electrical products, high-voltage products are expected to benefit from the UHV policy and increase rapidly; 2) The continuous development of the company’s infrared thermal imager in the industrial field is the highlight of future performance growth; 3) After the double improvement of product structure and overseas channels, general electronic measuring instruments are expected to become the main profit growth point in the future and open the growth ceiling of the company.
Difficulties and opportunities coexist in the general electronic measuring instrument industry, and the company continues to benefit from domestic substitution. At present, the general electronic measuring instrument industry is dominated by European and American overseas giants represented by Shide technology, Tektronix, Liko, rod and Schwartz. Its R & D advantage in the field of core special chips of high-end products is difficult for Chinese enterprises to surpass in a short time. At present, due to the export control of high-performance general electronic testing and measuring instruments in the United States to China, taking digital oscilloscope as an example, after the bandwidth reaches 4GHz and above, there are no public technologies and suitable commercial chips in the market, while foreign enterprises use self-developed chips, and the maximum oscilloscope bandwidth is more than 100GHz. The products of Chinese manufacturers are still dominated by products of 2GHz and below, which is far from overseas. Therefore, in the long run, domestic substitution is an inevitable trend. At present, Chinese manufacturers represented by Puyuan Jingdian, dingyang technology and Uni-Trend Technology ( China) Co.Ltd(688628) continue to invest in the research and development of high-end products, especially high-end chips. Under the background of accelerating the domestic substitution process, the company has broad growth prospects and strong performance release momentum.
It is estimated that the net investment of the parent company will be RMB 1.387 billion and the net profit of the parent company will be RMB 1.821 billion / 2021.751 billion, which is expected to be RMB 1.381 billion / 2021.751 billion.
Risk tip: the overseas market expansion progress is less than expected, the independent chip research and development progress is less than expected, and the risk of loss of core technicians
