\u3000\u3 Guocheng Mining Co.Ltd(000688) 097 Bozhon Precision Industry Technology Co.Ltd(688097) )
Key investment points
Recommendation logic: 1) the company is a leading enterprise of 3C automation equipment, deeply cultivating the industrial chain and expanding the development space; The underlying technology of industrial automation has accumulated deeply, and the self-developed core parts in the field of machine vision have been widely used in apple and other important customer products; 2) The new energy business has become the second growth pole of the company, binding Contemporary Amperex Technology Co.Limited(300750) and other benchmark customers. It is expected that the compound growth rate of the new energy business of the company will reach 219.8% in the next three years; 3) In the future, the company will enter the three hundred billion blue oceans from the ten billion industry, with the goal of becoming a world-class enterprise in the field of equipment manufacturing.
The company is a leading enterprise in the field of 3C automation equipment, with strong accumulation of underlying technology of industrial automation. The company is China’s largest supplier of automatic assembly and testing equipment for Apple’s FATP link. It has strong technology accumulation and has the ability of rapid and mass delivery to meet the service response needs of world-class customers. In the future, the company’s products will expand horizontally from mobile phones to wearable devices and other terminal products, and there is still a large space for localization and substitution of modules and parts vertically expanded from the whole machine end. In the field of core components at the bottom of the equipment, the company has arranged machine vision system (camera, light source, lens and software system), servo drive and other businesses. The products have been certified by apple and other important customers and have been widely used, accumulating rich application experience.
The new energy business will become the second growth pole of the company. New energy is an important strategic business of the company. It has expanded benchmark customers in Contemporary Amperex Technology Co.Limited(300750) , Weilai, BAIC and other industries. At present, it mainly provides customers with lithium battery manufacturing standard equipment such as liquid injection machine, module / pack automatic production line, as well as intelligent charging and replacement power station and other equipment. New products under research and development include cutting and stacking integrated machine, which is expected to cover about 50% of the value of the whole line of lithium battery equipment in the future. We expect the compound growth rate of the company’s new energy business to reach 230.5% in the next three years.
Enter the three hundred billion blue oceans from the ten billion industry, with the goal of becoming a world-class enterprise in the field of equipment manufacturing. The annual market scale of 3C automatic assembly and testing field currently engaged by the company is at the level of 10 billion, while the company’s new business lithium battery equipment has an annual market space of 100 billion and shows explosive growth. In the medium term, the fields of machine vision and semiconductor front channel test equipment cultivated by the company will begin to have large output. These two fields also have a potential market scale of 100 billion respectively. With its strong R & D strength, the company will show great development potential in these three hundred billion blue oceans, with the goal of becoming a world-class enterprise in the field of equipment manufacturing.
Profit forecast and investment suggestions. It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be 190 million yuan, 460 million yuan and 600 million yuan respectively, corresponding to 64 / 27 / 21 times of PE. Based on the company’s profound technical accumulation, excellent comprehensive strength and 35.9% compound performance growth in the next three years, we give the company a 35 times valuation in 2022, corresponding to 0.97 times peg and a target price of 39.90 yuan. We give a “buy” rating for the first time.
Risk tip: relying on Apple’s industrial chain, market competition intensifies, and the development of new products and new customers is less than expected
