Svg Tech Group Co.Ltd(300331) (300331)
We are deeply engaged in the field of micro nano processing, and are a leader in the field of micro nano optics and micro circuit processing. As a leading manufacturer and technical service provider of micro nano structure products in China, the company has mastered the underlying core technology of nano imprint lithography through years of technical research. The company’s products can be widely used in the manufacturing fields of micro nano optics (packaging anti-counterfeiting, traffic reflective film, liquid crystal display light guide plate) and microcircuit (TFT touch, miniled display).
In the field of new optical printing materials, the company can achieve high-quality 3D optical effects such as Fresnel lens and surface relief that cannot be produced by traditional transfer materials, and has superior folding burst resistance and ink printing adaptability. In addition, the company has an advanced R & D and manufacturing platform and is good at the development and manufacturing of customized graphics. It has an obvious competitive advantage in the segment of customized laser packaging requiring both anti-counterfeiting and visual impact effects.
In the field of new display optical materials, the light guide plate, light guide film and other products produced by the company by hot pressing process are core light guide devices, which can be used for all kinds of LCD backlight components. With its own micro nano lithography platform, the company has competitive advantages such as short development cycle of light guide products, low mold cost, wider product processing thickness and size, more stable quality, green process and environmental protection, and has begun to gradually replace the traditional printing and injection molding light guide plates in the field of medium and large size.
In the field of reflective materials, the company’s products are widely used in traditional fuel license plates and new energy license plates, and have achieved a good market position. In the future, with the rapid development of new energy vehicles and the potential possibility of upgrading traditional fuel license plates, this part of the business can grow. In addition, at present, China’s reflective material production capacity is mainly concentrated in glass bead type, and the micro prism reflective material market is still dominated by foreign 3M company. Huarisheng, a wholly-owned subsidiary of the company, is one of the few enterprises in China with the production strength of glass micro bead and micro prism reflective materials. With the orderly promotion of domestic substitution of micro prism reflective materials, its performance is also expected to achieve steady growth.
In the field of large-scale touch control, the company’s products are flexible conductive films and touch modules, which can be applied to medium and large-scale capacitive touch screens and medium and large-scale intelligent terminals. It is the most concise, convenient and natural human-computer interaction solution for medium and large-scale terminal equipment at present. At this stage, the medium and large-size touch equipment market is still a blue ocean market. Huawei, TCL, Hisense, Konka, iFLYTEK and zoom have entered the market one after another to release large-size touch terminal products. The medium and large-size capacitive touch technology that the company began to layout many years ago can effectively solve the defects in touch accuracy, stability and durability in traditional infrared touch solutions, and has been recognized by downstream head brand customers.
The performance of nano waveguide optical field lens is leading, and the AR industry contributes to its growth. The GlobalData report shows that the global ar market will be worth US $7 billion in 2020 and will expand with an amazing compound annual growth (CAGR) of 36% in the next decade, reaching US $152 billion in 2030. As early as 2010, Professor Chen Linsen, the founder of Svg Tech Group Co.Ltd(300331) , led a team to tackle key technical problems in the AR field. At present, he has mastered the design and manufacturing technology of “head mounted three-dimensional display light field lens”, independently developed the efficient nano preparation equipment of “nano waveguide light field lens”, and according to the characteristics of waveguide light field lens, The design and processing capability of “nano waveguide optical field lens” is established, which effectively expands the AR field angle. With the rapid development of AR market, Svg Tech Group Co.Ltd(300331) which has been prepared is expected to take advantage of the wind.
Taking the automotive intelligent cockpit HUD as an example, the company’s solution based on diffraction waveguide can effectively solve the problems of short projection distance and large mechanical volume of the current geometric optics solutions, and is expected to significantly benefit from the rapid development of automotive intelligence.
The actual controller has profound technical skills and strong R & D strength of the team. Professor Chen Linsen, the actual controller of the company, has been engaged in micro nano manufacturing technology for decades. He has reached the leading level in China and even the world in the field of micro nano processing technology such as nano imprint lithography, and has won the second prize of national scientific and technological progress for many times. In addition, the R & D strength of the Svg Tech Group Co.Ltd(300331) technical team led by him can not be underestimated. So far, the company has obtained 423 patents, including 127 invention patents, covering many fields such as optics, electricity, lithography equipment and so on. The forward-looking judgment of the actual controller on the technical trend and the strong R & D strength of the team have laid a solid foundation for the long-term and steady growth of the company in the future.
Profit forecast and investment rating: first coverage and buy rating. As an enterprise deeply engaged in the processing of micro nano optical and electrical materials, Svg Tech Group Co.Ltd(300331) is at the leading level in the industry in both “traditional” fields such as packaging anti-counterfeiting, reflective materials, light guide plates and conductive films, and “emerging” markets such as AR optical waveguides. In the future, with the gradual improvement of the utilization rate of the company’s raised and invested capacity and the further strengthening of the fine management level, its revenue scale and profit margin level are expected to achieve steady growth. It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be 86 million yuan, 219 million yuan and 417 million yuan, and the corresponding PE of the current market value will be 100.98, 39.69 and 20.84 times respectively. First coverage, giving the company a buy rating.
Risk tips:
1) Repeated outbreaks in the world and China; 2) Downstream demand is lower than expected; 3) Capacity utilization is lower than expected; 4) Market competition intensifies.
