\u3000\u3 China Vanke Co.Ltd(000002) 913 Aoshikang Technology Co.Ltd(002913) )
PCB top 100 companies that keep pace with the times and constantly innovate
1. The company focuses on PCB production and manufacturing business. Through years of continuous R & D investment, the company has core competitive advantages in “large layout”, high speed and deep standardization of PCB products, and has obtained 271 patents in multiple application fields of PCB.
2. The company has outstanding growth ability, with an operating revenue of 4.438 billion yuan in 2021 and a compound growth rate of 26% from 17 to 21; The net profit attributable to the parent company is RMB 505 million; The compound growth rate of 17-21 years is 30%.
3. Benefiting from the fine management of production orders, production modes and production processes, as of the third quarter of 2021, the company’s cost profit margin, return on invested capital and return on human investment (13.42%, 10.81% and 133.2% respectively) exceeded the median level of comparable companies in the industry (12.42%, 8.56% and 103.75% respectively).
Miniled‘s commercialization accelerates, driving the development of upstream PCB industry
1 in large-scale applications, compared with OLED / microled, miniled has higher technical maturity, higher cost performance, stronger market competitiveness and a broad market in indoor and outdoor application scenarios. According to omdia’s prediction, the global sales volume of mini LED backlight TV products will increase from 4 million units in 2019 to 52.8 million units in 2025, with an average annual compound growth rate of 53.73%.
With the decrease of 2miniled spacing, the requirements for the number of PCB layers and processing technology increase, and the PCB value increases accordingly. We predict that the market scale of miniled TV PCB will reach about 17 billion yuan in 2024, an increase of more than 5 times over 2021, and the overall demand will increase significantly.
3. The company’s customers are all over Japan and South Korea, and will deeply benefit from the surge in PCB demand brought by the commercial use of miniled TV.
Benefiting from the electrification and intellectualization of vehicles, the Automotive PCB market continues to expand
1. China Shanxi Guoxin Energy Corporation Limited(600617) automobile industry will enter a period of rapid growth in the next three years. According to the action plan of the State Council for carbon peak before 2030, the penetration rate of new energy vehicles is expected to increase to 40% by 2030, accounting for no less than 10 million vehicles. The proportion of electronic components in the whole vehicle cost of new energy vehicles is higher than that of traditional vehicles, and VCU, MCU and BMS systems will contribute new PCB increment. At the same time, thanks to the rapid popularization and development of automatic driving ADAS system, the demand for relevant sensing devices such as radar, camera and detector has increased comprehensively. We predict that the market scale of new energy vehicle PCB market will be about 20 billion yuan by 2024, more than double that of 2021.
2. The company has a high proportion of downstream automotive customers. It has rich experience in cooperation with Yazaki, Heiner, BorgWarner, Byd Company Limited(002594) , Siemens, Huizhou Desay Sv Automotive Co.Ltd(002920) , Hangzhou Innover Technology Co.Ltd(002767) and other automotive electronics manufacturers. It will fully enjoy the industrial dividends brought by automotive electrification and intelligence in the future.
Investment advice
We estimate that the net profit attributable to the parent company from 2021 to 2023 will be RMB 505, 654 and 888 million, with corresponding P / E ratios of 19, 14 and 11 times. The company is given a “buy” rating for the first time.
Risk tips
Miniled business is less than expected, new energy vehicle sales are less than expected, and capacity expansion is less than expected.
