\u3000\u3 China Vanke Co.Ltd(000002) 384 Suzhou Dongshan Precision Manufacturing Co.Ltd(002384) )
Suzhou Dongshan Precision Manufacturing Co.Ltd(002384) : start with precision manufacturing and expand the industrial chain through M & A It was listed on the Shenzhen Stock Exchange in 1998. The company acquired mflex and multek in 2016 and 2018 respectively, and successfully entered the PCB track. At present, the company is mainly divided into three sectors and five business divisions. The three sectors are electronic circuit, photoelectric display and precision manufacturing, and the five business divisions are mflex, multek, led, TP & LCM and precision manufacturing.
Consumer electronics: smart phone + wearable dual drive, boosting PCB volume and price. 1) The smartphone motherboard is upgraded to high-rise HDI / SLP board. The consumption of FPC of Apple mobile phone is increasing year by year. The consumption of FPC of Android model has more room for improvement than that of Apple model. 2) 5g mobile phones began to use LCP antenna. According to the prediction of jimicrogrid, the value of 5g mobile phones is about 20 times that of 4G mobile phone PI antenna. 3) Wearable device shipments and FPC consumption can not be underestimated. According to IDC data, the CAGR of shipments in 20162020 is 40.87%. Mflex is the world’s top three FPC company and the main supplier of a customers. The company deeply cultivates the industrial chain of a customers, actively develops Android customers, is optimistic about the field of IOT and continues to cut into the IOT track. The company closely follows the 5g replacement trend and expands FPC production capacity. The company’s soft board is expected to enter the third-party Chinese screen supplier industrial chain of customer a, further promoting the growth of the company’s FPC business.
Automotive electronics: driven by the trend of three modernizations of automobile, the prosperity of automobile PCB is upward. 1) The consumption of PCB in new energy vehicles is higher than that in traditional vehicles. The trend of FPC replacing traditional wire harness is obvious, and the consumption of FPC per vehicle is expected to exceed 100. 2) The increasing carrying rate of ADAS drives the demand for PCB. The value of ADAS PCB of model 3 single vehicle exceeds 500 yuan, accounting for more than 20% of the total PCB of the whole vehicle. 3) In line with the trend of automobile lightweight, the demand for CCS, automobile body and battery structural parts blooms at many points. Multek is a leading PCB company in the world. It has moved to the golden track of new energy vehicles. The increase of automobile PCB consumption has opened the golden age of PCB. The company and well-known electric vehicle manufacturers in North America jointly initiated CCS soft board, which has gradually become the mainstream configuration of new energy vehicles and further increased the consumption demand of FPC. The company has worked in the aluminum alloy industry for many years, and its products cover body structural parts and battery structural parts, which is expected to benefit from the automobile track.
Communication electronics: the transformation of base station antenna promotes the penetration of PCB and 5g precision manufacturing into the blue ocean. 5g penetration has increased, the number of base stations has been rising, and PCB, base station antenna and filter have ushered in new development. The PCB value, antenna value and filter value of 5g base station are higher than those of 4G base station. The company has been engaged in precision manufacturing for 40 years, with products covering base station antenna and perfect processing technology. In 2017, the company acquired 70% equity of Aifu electronics, aimed at 5g field, arranged ceramic dielectric filter industry in advance, increased volume and price, and improved the profitability of precision manufacturing business.
Optical display: turn complexity into simplicity and pick gold through sand. The company has gradually stripped off its non core business. LCM business focuses on small and medium-sized LCD modules, and TP business is transformed into medium and large-sized touch screens, which is expected to benefit from the field of pen touch and bring a new round of growth. The company’s led business focuses on the mini LED industry. At present, its products are mainly concentrated in the field of professional display, and it is expected to enter the commercial and civil fields in the future.
Investment suggestion: it is estimated that the net profit attributable to the parent company from 2021 to 2023 will be RMB 1911 / 2428 / 307 million, corresponding to EPS of RMB 1.12/1.42/1.76 from 2021 to 2023 and PE of 17 / 14 / 11 times respectively. The company moved to the new energy vehicle competition to achieve internal coordination and coverage for the first time, and was rated as “recommended”.
Risk warning: industry competition intensifies; High dependence on key customers; The expansion of production was less than expected.
