Huaxing Yuanchuang (688001): Professional test equipment empowers China’s smart manufacturing
The company went public according to the first criterion.
Main logic: The company has fully developed the flat panel display and touch intelligent detection technology. It is currently the world’s main supplier of high-end smart phone screen display and touch detection equipment.The income scale is expected to further expand; at the same time, it is actively developing related diversified fields and continuously exploring new areas of detection technology, such as integrated circuit detection technology, electric vehicle electronics detection technology, etc.With some market shares, it is expected to create new points of profit growth.
The business is developing rapidly and the customer resources are excellent.
The company is mainly engaged in the research and development, production and sales of flat panel display and integrated circuit testing equipment, LCD and OLED flat panel display, integrated circuits, automotive electronics and other industries.
Downstream customers include Apple, Samsung, LG, Sharp, BOE, JDI and other well-known manufacturers in the industry.
From 2016 to 2018, the company’s operating income was 5 respectively.
200 million, 13.
700 million and 10.
10,000 yuan, the net profit attributable to the mother is 1.
800 million, 2.
100 million and 2.
400 million US dollars, affected by the company’s business characteristics and business model, the company’s revenue has some variability, but the overall level is at a high level.
Flat-panel testing equipment: Deep cultivating for many years, outstanding quick response capability.
With the rapid development of China’s flat-panel display industry, the layout of domestic OLED production lines has accelerated, which has led to the rapid growth of related supporting companies including testing equipment and upstream and downstream companies.
The whole process of manufacturing the perforated panel of the testing equipment is a critical moment to ensure the yield.
The company has been deeply cultivating the panel testing equipment industry for many years, and has accumulated rich customer resources and good market reputation. From 2016 to 2018, the company’s flat panel display testing equipment sales revenue was 500 million, 13 respectively.
500 million and 9.
7ppm, accounting for 97% of operating income for the year.
7% and 96.
Integrated circuit test equipment: open up new growth space.
Based on its basic business and based on its own technology reserves, industry development trends and future market prospects, the company set up a semiconductor division in early 2017 to develop integrated circuit test equipment, especially in the field of integrated circuit high-end test equipment.
At present, the company’s self-developed ultra-large-scale SoC tester has completed delivery of some benchmark customer verifications, BMS chip testing equipment has been approved for scale orders, and orders in hand in the first half of 2019 have reached US $ 300 million, and are being delivered in succession.Continue to open up new growth space for the company.
Profit forecast and estimation.
It is expected that the company’s net profit attributable to mothers will grow at a compound annual growth rate of 25% in 2019-2021.
Considering that the company’s flat-panel display testing business is relatively mature and has direct benchmarking companies in A-shares, and integrated testing equipment business also has direct benchmarking companies, the PE reform method is mainly used, referring to the estimates of the major comparable companies, Precision Measurement Electronics and Changchuan TechnologyLevel, we believe that the company’s reasonable PE level in 2019 is between 31-42 times, which corresponds to a reasonable estimated range of 87 for Huaxing Yuanchuang.
6 trillion, 北京夜网 assuming the number of shares of the company after the issue is 4.
01 billion shares, corresponding to a target price of 21.