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First, the main business Score: 75
1, the business analysis: The company's main business for the intelligent detection equipment, based on the optical principle and software algorithms for the size of industrial products, high-precision measurement up to 3 microns to achieve the international first-class level. Software algorithms, for the size of industrial products for high-precision measurement, the highest accuracy of up to 0.3 microns, to reach the international first-class level. Downstream applications to consumer electronics production lines, Apple is also the company's largest customer, but in the past few years, lithium batteries, photovoltaic, semiconductor industry production line investment demand is strong, the company's products are also along the trend into these emerging fields, consumer electronics market dependence has also rapidly declined from 88% in 2020 to 49.76% in 2021, and thus avoided the industry cycle. In addition, the company's products in the smart factory, PCB, intelligent parking, robotics and many other areas of application.
The application of machine vision technology in the consumer electronics industry has begun two decades ago, and is still the most important application area of machine vision, but also to drive the development of the global machine vision market is the most important driving force. The consumer electronics industry has a short product life cycle, fast replacement of industry characteristics, frequent models and design changes lead to manufacturing enterprises need to frequently purchase, update their production line equipment, its upstream of the machine vision industry to generate huge demand. 2021 due to the landing of the 5G technology to drive the smartphone industry a major technological upgrades, superimposed on the impact of the new crown epidemic, flat panels, laptops and other electronic products demand Strong, to the machine vision industry to bring a round of more substantial growth.
2, the industry competition pattern: China's machine vision market participants in the main body of two categories, the first is the old foreign machine vision enterprises (including branches and joint ventures in China), the second is the emerging independent research and development of domestic enterprises. Foreign-funded machine vision enterprises have a long development time, high brand awareness, strong technical research and development capabilities, high product performance and reliability, product categories and solutions accumulated more, and more perfect management, accurate market judgment, strong planning. However, at the same time, from the product design, foreign-funded enterprises products are generally based on standardization, to deal with domestic customers more application scenarios and customization preferences have a certain degree of difficulty, and the product price is relatively high, in the customer's overall cost pressures continue to rise in the environment at a relative disadvantage. Compared with foreign-funded enterprises, domestic machine vision companies have a shorter development time, lower visibility, technical research and development capabilities are not strong, independent research and development of product performance and stability and foreign brands still have a certain gap. However, domestic enterprises have a better understanding of domestic customer demand and market, can provide flexible and customized services, rapid response to customer demand, short supply cycle, and cost advantage is obvious, the market share is growing year by year.
The company's 2019 visual inspection products market share of about 5.25%, ranking in the domestic leading position, the main competitors include DWFritz, Hennecke, Momentum Technology, Jingmei Electronics, Aot Wei, domestic enterprises product line is not the same, specializing in different areas. Precision measurement electronics focus on the panel optical inspection field, large customers for BOE; Ottway is focused on photovoltaic and lithium battery emerging fields, so the valuation is also much higher than the company. Momentum technology products focused on automatic placement, LED optical defect detection, customers throughout the industrial production enterprises. However, the number of companies in the industry is still very much, including foreign capital and domestic capital, the market is still relatively decentralized, mainly customers as a whole is more dispersed and highly customized demand, so it is difficult to have a company can rule the roost, the future of the company is expected to rely on superior technology and new products to gradually occupy more markets, enhance market concentration.
3, the industry development prospects: vision intelligent detection equipment is still the largest application areas of consumer electronics, due to consumer electronics upgrade speed, consumer electronics by a certain economic cycle, so the overall presentation of a certain cyclical attributes. 2021, the overall market boom in consumer electronics decline, in semiconductors, photovoltaic, lithium batteries and other areas of rapid demand. Lithium batteries and other areas of rapid outbreak of demand, to make up for the demand gap, once the consumer electronics demand outbreak coupled with the continued growth of emerging industries, the industry is expected to usher in a period of rapid growth. At the same time, in recent years, the head of the domestic enterprise technology strength progress faster, many segments have been able to reach the international first-class level, by virtue of the advantages of low cost and customization gradually occupy more markets, the future trend of localization will also be one of the core logic of industry growth.
4, the company's performance growth logic: (1) consumer electronics demand rebound; (2) the new market semiconductor, photovoltaic downstream demand is strong; (3) domestic substitution; (4) the orders on hand sufficient, the continuous development of new products.
The text in the box are data supplement to the text, can be skimmed
Second, corporate governance Rating: 75
1, major shareholders and executives: Major shareholders direct shareholding of 41.32%, the second largest shareholder of the Tianzhun Haozhi for the core of the senior platform, the major shareholders totaling about 53% of the total shareholdings. The major shareholders hold about 53% of the total shares, and other executives indirectly hold about 8% of the company's shares through Tianzhun Hezhi, together with the 2-phase employee shareholding platform of about 2.36%, the total equity incentive of more than 10%, the incentive is very sufficient. The majority of the shareholders and core management are mostly from technical backgrounds, and the company's technology is also in a leading position in the industry.
2, the composition of the staff: mainly technical and production staff, 2020 personnel growth rate is faster, mainly based on the business development of good expectations, will also bring the company a larger fee. The company's per capita revenue generation of 600,000 yuan, per capita profit generation of 67,000 yuan, in the peer group is a medium level.
3. Institutional Holdings: The top ten liquid shareholders include 2 foreign investors and 2 private equity, which is somewhat recognized by mainstream funds.
4. Shareholder Responsibility (Financing and Dividends):
The company has been on the market for nearly 2 years, and its dividends have been moderate.
3, financial analysis Rating: 75
1, balance sheet (key subjects): The company's books are full of cash, the amount of accounts receivable is reasonable, the amount of inventory has increased dramatically, which should be the result of the company's stocking for large customers, as long as the implementation of the contract is not a problem, the substantial increase in inventory represents an improvement in performance. As long as there is no problem in contract execution, the substantial growth of inventory represents the improvement of performance. Construction in progress is growing steadily and is in the period of orderly expansion. The company has part of the R & D costs capitalized, but 0.31 billion yuan of development expenditures also gave a breakdown of R & D projects, disclosure of information is better. Interest-bearing liabilities of less than 300 million yuan, debt service pressure is small; contract liabilities have significantly improved, coupled with the rapid growth of inventory, it is estimated that the company's orders on hand is relatively full, the debt ratio of about 42%, the overall asset structure is healthy.
2, income statement (key subjects): 2021 the first three quarters of the rapid growth in revenue, but the various costs are also very fast growth. The company expects 2021 revenue of 1.264 billion yuan, an increase of 31.14% year-on-year, net profit of 135 million yuan, an increase of 26.06% year-on-year, share-based payment expense of 54.44 million yuan, excluding share-based payment expense, 2021 net profit of 181 million yuan, an increase of 48.32% over the previous year. Based on the company's sufficient orders, it is expected that revenue and net profit are still expected to maintain rapid growth in 2022.
3, key financial indicators analysis: after listing The company's return on net assets declined significantly in 2021, there is significant growth, the company's current business growth is faster, the debt ratio is also a significant increase in the next few years is expected to have a significant improvement in the return on net assets. Gross profit margin overall downward, stabilized and rebounded in 2021, the core of the competitive pressure. Net profit is down for three consecutive years, the expense ratio remains high, the growth of net profit depends on the growth of revenue, the next few years with the rapid growth of new products and new markets, or there is some room for improvement.
Four, growth and valuation analysis Rating: 70
1, growth: Intelligent testing market growth prospects are huge, the emerging field of application of the rapid increase in the company as a niche industry leader coupled with outstanding technological competitiveness, the future is expected to be higher than the industry's average growth rate.
2, valuation level: based on the company's consumer electronics business accounted for a sustained reduction in the proportion of emerging applications market share, the cyclical attributes of the weakening of the company's 30-40 times valuation of the price-earnings ratio.
V. Investment Logic and Risk Alert
1, the investment logic: (1) the consumer electronics industry demand recovery; (2) semiconductor, lithium batteries, photovoltaic and other emerging applications of the market growth; (3) the company's technology leading edge is outstanding, the orders on hand sufficient.
2, the core competitiveness: (1) brand and scale advantages; (2) technology and innovation advantages; (3) talent advantage.
3, risk tips: (1) downstream demand fluctuation risk; (2) increased competition, gross margin decline risk; (3) inventory impairment risk; (4) customer concentration risk.
Six, the company's overall assessment (total score of 73.25)
The company was founded 13 years ago, by virtue of the accumulation of superior technology and R & D strength, to become the domestic optical intelligent testing equipment leader. In the past, the company's more than 80% of the business focused on the field of consumer electronics, 2021 semiconductor, photovoltaic, lithium battery field of business showed explosive growth, consumer electronics business accounted for a decline to less than fifty percent, the company also succeeded in getting rid of the electronic cycle, bucking the trend of industry growth. Domestic semiconductor, photovoltaic, lithium battery production line is still continuing to expand, once the consumer electronics demand cycle picks up, the industry is expected to grow rapidly, and the trend of domestic substitution is at that time, the industry's future growth trend is good, the company has enough orders on hand, 2021 contract liabilities and inventory amount of significant growth, is expected to 2022 the company is also expected to have a good growth expectations, but also need to pay attention to the intensification of competition in the industry brought about by the The company is also expected to have good growth expectations in 2022, but it is also necessary to focus on the increased competition in the industry brought about by the downside risk of gross margin.
Rating Criteria: AAA 85, AA: 77-84, A: 70-76; BBB: 60-69, BB: 55-59, B: 50-54; CCC and below 49
Sooner or later, the company's ratings and scores are only the personal opinion of the company. Under no circumstances does the information or opinion contained in this report constitute a recommendation to buy or sell securities to any person, and no responsibility is accepted for any direct or indirect loss arising from any person's use of this report and its contents.
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