Zhuhai Bojay Electronics Co.Ltd(002975) (002975)
Focus on automated testing, assembly equipment and solutions, and continue to expand business
(1) The company is positioned as a one-stop solution supplier for automatic testing and automatic assembly. Founded in 2005, the company focuses on the R & D, production, sales and related technical services of industrial automation equipment and accessories. Its business covers four major fields: electricity, acoustics, radio frequency and optical detection. Among them, the company’s ICT test equipment technology is at the world leading level, and 5g radio is ahead of schedule Frequency detection equipment. At present, the company’s main customers are the world’s top 500 enterprises, including global famous high-tech companies such as apple, Microsoft and Cisco. In recent years, the domestic business expansion has also continued to advance steadily, and the products have been recognized by many customers, including Shenzhen Microgate Technology Co.Ltd(300319) , Shenzhen Sunlord Electronics Co.Ltd(002138) .
(2) Organizational structure: the equity incentive is perfect and the core management is bound. On April 23, 2021, the company granted 754600 restricted shares to 90 equity incentive objects at a price of 49.68 yuan / share, accounting for 0.54% of the company’s total share capital of 13893400 shares on the announcement date of the draft incentive plan. The listing date of the restricted shares granted for the first time is May 11, 2021. The implementation of the equity incentive will further improve the public The company has a long-term incentive mechanism to ensure the realization of the company’s development strategy and business objectives.
(3) The company’s performance grew steadily in 2020 and was under pressure in the third quarter of 2021. In 2020, benefiting from the improvement of 5g penetration and the recovery of consumer electronics market, the company’s operating revenue was 1.376 billion yuan, a year-on-year increase of 66.8%; the net profit attributable to the parent company was 341 million yuan, a year-on-year increase of 126.86%. In the first three quarters of 2021, the company realized an operating revenue of 911 million yuan, a year-on-year decrease of 15.68%, and a net profit attributable to the parent company of 230 million yuan , a year-on-year decrease of 25.17%. The year-on-year decline in performance was mainly affected by factors such as the decline in the short-term prosperity of 3C industry and the short-term reduction in the demand of end customers.
(4) Publicly issue convertible corporate bonds to further expand the business scale. Zhuhai Bojay Electronics Co.Ltd(002975) 5.26 million convertible corporate bonds were publicly issued on November 17, 2021 and listed on Shenzhen Stock Exchange on December 17, with a total raised capital of 526 million yuan. On the basis of consolidating the company’s existing business advantages, the company will actively expand semiconductor testing and other related businesses, which is conducive to improving its industrial automation equipment product line and laying a solid foundation for the company to further expand production capacity and explore the market.
5g penetration improvement + Ar / VR equipment launch is expected to drive a new round of recovery of 3C equipment capital expenditure
(1) Mobile phone sales gradually pick up and are expected to fully recover in 2022. Affected by factors such as repeated epidemic, lack of core and reduced iteration speed of mobile phone functions, smartphone sales data fell in 2021. According to IDC data, global smartphone shipments fell 9.35% month on month in the first half of 2021. However, smartphone sales have picked up since the third quarter. At the same time, according to MIC data, it is expected that 5 The penetration rate of 5g mobile phones will increase from 1.3% in 2019 to nearly 40%. We believe that 5g mobile phones will return to the normal demand trend in 2022, which is expected to drive the growth of 3C equipment demand.
(2) With the acceleration of yuancosmos, AR / VR equipment is expected to drive a new round of recovery of 3C equipment capital expenditure. Looking forward to 2022, with the acceleration of yuancosmos layout, a new round of AR / VR equipment is expected to usher in an explosion opportunity. It is expected that meta’s new generation oculus equipment and Apple’s Mr products are expected to be launched next year. According to the data of China Academy of information and communications, virtual augmented reality (VR / AR) will be launched in 2020 The terminal shipment volume is about 6.3 million units, which will reach 75 million units by 2024, and the CAGR will reach 86%; In 2020, the market scale of virtual augmented reality (VR / AR) industry will be about 90 billion yuan, and it will reach 480 billion yuan by 2024, with a CAGR of 54%. We believe that the successive launch of AR / VR equipment will drive a new round of recovery of capital expenditure in 3C equipment industry.
(3) Expand the company’s existing business by acquiring high-quality targets. The company acquired Zhuhai odway and participated in Dingtai Xinyuan, extending the company’s business to visual inspection, semiconductor testing and other fields, broadening the existing application fields and markets, which is expected to improve the company’s business competitiveness, improve the industrial layout and broaden the intelligent manufacturing product chain. It benefits from the prosperity of the visual inspection equipment industry The subsidiary odway is mainly engaged in MLCC ceramic capacitor hexahedron detection. At present, it has gradually increased its volume.
For the first time, give a “buy” rating. The company is a leading one-stop solution supplier for automated testing and automated assembly in China. Affected by the repeated epidemic and the downturn of 3C industry, the company’s performance is under pressure in the short term. It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be 290 million yuan, 412 million yuan and 525 million yuan respectively, and the corresponding PE will be 28, 20 and 15 times respectively. We believe that with the launch of AR / VR equipment, 3C equipment industry is expected to usher in a new round of recovery of capital expenditure. At the same time, the company accelerates the business layout of semiconductor and visual inspection, and the future performance is expected to achieve rapid growth. For the first time, give a “buy” rating.
Risk tips: 5g process is less than expected, 3C industry recovery is less than expected, market competition risk, downstream customers are more concentrated risk, export revenue accounts for a large risk, and market scale is less than expected.
