Shanghai Friendess Electronic Technology Corporation Limited(688188) (688188)
Event overview
On November 30, the Ministry of industry and information technology issued the development plan of software and information technology service industry in the 14th five year plan, which put forward tasks such as key breakthroughs in industrial software; The 14th five year plan for the development of deep integration of informatization and industrialization was issued, and key projects such as digital transformation of manufacturing industry were put forward.
Analysis and judgment:
Policy support helps the development of industrial software. The 14th five year plan for the development of software and information technology service industry takes industrial software as one of the key breakthrough tasks, and proposes to develop and promote computer-aided design, simulation, calculation and other tool software, vigorously develop key industrial control software, and accelerate the industrialization deployment of high value-added operation, maintenance and operation management software. We believe that industrial software is an important link to enhance the competitiveness of China’s manufacturing industry and an important foundation for the development of intelligent manufacturing. Driven by policies, China’s industrial software is expected to usher in rapid development.
The company is the leader of laser cutting control system, and the localization of high-power system promotes the development of the company. As the leader of laser cutting motion control system, the company has developed a variety of laser cutting software to integrate CAD, cam and NC functions. Compared with the foreign-funded products that monopolized the market before, the company’s control system has a high degree of integration, greatly simplified operation process, strong compatibility, friendly operation interface and high viscosity of end users. At present, the low-power has been basically localized, while the high-power field is still mainly occupied by foreign enterprises. The company’s technology continues to make progress. With the promotion of fund-raising projects, we believe that the company is expected to copy the development path of low-power and realize the localization of high-power field.
Industrial software is highly expandable and technology driven, opening the growth margin. 1) Expand the laser cutting head with software and hardware. On the one hand, it can strengthen the adaptability between the control system and the cutting head, so as to improve the cutting effect. On the other hand, it can also provide an integrated comprehensive solution; 2) Expand intelligent welding Siasun Robot&Automation Co.Ltd(300024) . Welding is the next process after cutting and the underlying technology is interlinked. The company has the technical basis for industrial expansion. At the same time, steel structure welding Siasun Robot&Automation Co.Ltd(300024) has a large market space, and intelligent welding Siasun Robot&Automation Co.Ltd(300024) will completely open the growth space of the company; 3) Layout of ultrafast laser: the company has formed strong competitiveness in the field of ultrafast laser. With the promotion of IPO raising and investment projects, ultrafast laser is expected to form a new performance growth point.
Investment advice
With the rapid development of the company’s high-power system and the expansion of the fields of laser cutting head, intelligent welding Siasun Robot&Automation Co.Ltd(300024) and ultrafast laser based on the accumulation of technology and customer resources, it is expected to open the growth margin of the company. We raised the forecast of revenue of 668 and 840 million yuan to 948 and 1308 million yuan in 21-22, raised the net profit attributable to the parent company of 498 and 614 million yuan to 606 and 793 million yuan in 21-22, and added the forecast for 2023, It is estimated that the company’s revenue from 2021 to 2023 will be RMB 948 / 1308 / 1779 million, the net profit attributable to the parent company will be RMB 606 / 793 / 1066 million, the corresponding EPS will be RMB 6.04/7.90/10.62, the corresponding closing price of RMB 404.18/share on December 14, 2021, and the PE will be 67 / 51 / 38 times respectively, maintaining the “overweight” rating.
Risk statement
The prosperity of the industry is lower than expected; High power localization is not as expected; Industrial expansion was less than expected.
