Jinji Research, no wind/author Yang Qichao, time wind/editor
In recent years, the market hot electronic products represented by smart phones, 5G communications, wearable devices, smart homes, new energy vehicles and other hot electronic products have shown rapid development, which should be used for various types of electronic products in the field of the production of electronic components such as FPC, connector components, LED backlight modules and other manufacturing
In recent years, the domestic precision electronic components manufacturing industry has brought opportunities and challenges. Put forward higher requirements for the domestic precision electronic components manufacturing industry has brought opportunities and challenges. In this context, the domestic precision electronic components manufacturing industry has developed rapidly, emerging a number of precision manufacturing as the core of the large high-end electronic components manufacturing enterprises.
As one of the most advanced precision electronic components manufacturers in China, Yidong Electronics Technology Co. In terms of performance, Yidong Electronics revenue, net profit continued to grow, ROE and gross margins of the main business segments are higher than the industry average, outstanding profitability. Ploughing the field of precision electronic components for more than 20 years, Yidong Electronics from the mastery of precision mold design and manufacture of core technologies as the basis, to the formation of precision stamping, precision injection molding, surface treatment, assembly, testing and inspection of the whole process of supporting production capacity, in the industry has formed a technological innovation, products, the whole process of integrated supporting production management, customer and other aspects of the competitive advantage.
First, revenue and net profit rose year by year, ROE and the main business segments of the gross profit margin higher than the industry average
According to the prospectus, Yidong Electronics is mainly engaged in the FPC, connector components, LED backlight module and other precision electronic components research and development, production and sales of high-tech enterprises, in the sub-sector of the industry for precision electronic components industry. Electronic components industry.
In recent years, Yidong Electronics operating income and net profit rose year by year.
According to the prospectus, in 2018-2020 and January-September 2021, the operating income of Yidong Electronics will be 992 million yuan, 1,055 million yuan, 1,175 million yuan and 1,076 million yuan, respectively, with a year-on-year growth of 6.34% and 11.4% in 2019-2020, respectively.
During the same period, Yidong Electronics's net profit was $45 million, $103 million, $184 million, $143 million, with year-on-year growth of 126.6% and 78.59% in 2019-2020, respectively.
It can be seen that the operating income and net profit of Yidong Electronics have risen year by year from 2018-2020.
At the same time, the gearing ratio of Yidong Electronics is lower year by year and lower than the industry average.
From 2018-2020 and January-September 2021, the gearing ratio of Yidong Electronics is 62.27%, 47.07%, 38.14% and 36.69% respectively.
During the same period, the comparable companies in the same industry of Yidong Electronics, Shenzhen Jingwang Electronics Company Limited (hereinafter referred to as "Jingwang Electronics"), Anjieli Industrial Company Limited (hereinafter referred to as "Anjieli Industrial"), Guangdong Junya Electronics Technology Co. Ltd. (hereinafter referred to as "Guangdong Junya"), Xiamen Hongxin Electronics Technology Group Company Limited (hereinafter referred to as "Hongxin Electronics"), Shenglan Technology Co. (hereinafter referred to as "Shenglan"), Dongguan Dingtong Precision Technology Company Limited (hereinafter referred to as "Dingtong Precision"), Shanghai Leimu Electronics Company Limited (hereinafter referred to as "Leimu"), Shenzhen Changying Precision Technology Co. Ltd. (hereinafter referred to as "Changying Precision"), Weizhi Holdings Company Limited (hereinafter referred to as "Weizhi Holdings"), Jiangxi Lianchuang Optoelectronics Technology Company Limited (hereinafter referred to as "Lianchuang Optoelectronics"), Shenzhen Lungli Optoelectronics Co. ("Lianchuang Optoelectronics"), Shenzhen Longli Technology Company Limited (hereinafter referred to as "Longli Technology"), and Shenzhen NJ Optoelectronics Technology Company Limited (hereinafter referred to as "NJ Optoelectronics"), the average values of gearing ratios were 48.09%, 47.63%, 48.09% and 47.63%, respectively. 48.09%, 47.63%, 48.56%, 46.65%.
In addition, the weighted average return on net assets of Yidong Electronics for 2019-2020 and January-September 2021 is also higher than the average of comparable companies in the same industry.
From 2018-2020 and January-September 2021, the weighted average return on net assets of Yidong Electronics is 7.56%, 20.02%, 24.72% and 15.84%, respectively.
During the same period, Yidong Electronics comparable companies in the same industry, Hongxin Electronics, Guangdong Junya, Jingwang Electronics, Anjeli Industry, Leimu shares, Shenglan shares, Tingtong Precision, Changying Precision, Weizhi Holdings, Lianchuang Optoelectronics, Lonely Science and Technology, Antarctica's weighted average return on net assets of the average value of 16.06%, 12.73%, 11.02%, 4.04%, respectively.
Return on net assets is a core indicator that reflects the profitability and management level of the enterprise, the higher the value of the indicator, the higher the return on investment. Since 2019, the weighted average return on net assets of Yidong Electronics has been significantly higher than the average value of comparable companies in the same industry, highlighting its investment value.
In addition, the gross profit margin of each main business segment of Yidong Electronics is also higher than the average value of comparable companies in the same industry.
According to the prospectus, in 2018-2020, Yidong Electronics FPC gross profit margin was 24.14%, 25.42%, 27.87%. During the same period, Yidong electronic FPC comparable companies in the same industry, Hongxin Electronics, Guangdong Junya, Jingwang Electronics, Anjieli Industry, Danbang Technology, Transn Technology, Optical Putty shares of the average gross profit margin of 24.32%, 23.98%, 21.08%, respectively.
According to the prospectus, 2018-2020, Yidong electronic connector components gross margin were 30.4%, 36.59%, 38.38%. During the same period, the average gross profit margins of comparable companies in the same industry of Yidong electronic connector parts and components, such as Leimu, Shenglan, Dingtong Precision, and Changying Precision, were 30.35%, 31.14%, and 29.69%, respectively.
According to the prospectus, in 2018-2020, Yidong Electronics LED backlight module gross profit rate of 28.12%, 28.09%, 26.71%. During the same period, Yidong electronic LED backlight module comparable companies in the same industry Weizhi Holdings, Lianchuang Optoelectronics, Lonely Technology, NJG's gross profit margin average were 21.93%, 16.07%, 14.58%.
It can be seen that in 2019-2020, the gross profit margin of each main business segment of Yidong Electronics is higher than the average value of comparable companies in the industry, and its profitability is outstanding.
Second, attaches great importance to technological research and development innovation, and has accumulated a number of core technologies in various fields
As a national high-tech enterprise, Yidong Electronics has been adhering to the attitude of striving for excellence since its inception, emphasizing technological research and development, and adhering to the R & D investment and technological innovation.
In terms of R&D investment, in recent years, the R&D expense rate of Yidong Electronics has remained above 6% and higher than the average level of comparable companies in the same industry.
From 2018-2020 and January-September 2021, the R&D expenses of Yidong Electronics will be 76,590,700 yuan, 66,579,600 yuan, 74,310,200 yuan, 72,799,600 yuan, accounting for 7.72%, 6.31%, 6.32%, and 6.77% of the operating income, respectively.
During the same period, Yidong Electronics comparable companies in the same industry, Hongxin Electronics, Guangdong Junya, Jingwang Electronics, Anjeli Industry, Leimu shares, Shenglan shares, Tingtong Precision, Changying Precision, Weizhi Holdings, Lianchuang Optoelectronics, Lonely Science and Technology, Antarctica, R & D expense ratio average value of 4.99%, 4.98%, 5.38%, 5.73%, respectively.
In terms of technological innovation, Yidong Electronics has always insisted on the strategy of product development innovation and manufacturing process innovation, and regarded technological research and development innovation as an important driving force for long-term healthy development. On the one hand, Eaton continues to innovate and optimize existing technologies to enhance product performance; on the other hand, Eaton anticipates the development of the industry based on the development trend of the downstream field, and carries out technological reserve in advance.
Through continuous innovation and optimization of existing technologies, Eaton has accumulated a number of core technologies in various fields.
First of all, in the FPC area, Eaton has a number of core technologies such as digital and cell phone battery protection board FPC development technology, digital and cell phone peripheral FPC technology. In particular, the "a flexible circuit bridging process" patented technology breaks through the equipment limitations, you can arbitrarily two FPC end of the seamless device-free connection, so that the length of the FPC product is more than 2 meters, and to ensure that the function of the high reliability.
At the same time, Eaton has developed its own automation equipment and technology for FPC production, which improves product precision and quality yield, and thus forms its core competitiveness.
Secondly, in terms of connector components, Upper East Side has precision mold development technology, flexible assembly production technology for SFP components, automatic assembly technology for SFP components, automatic welding technology for SFP components with 360-degree all-round, high-speed stamping and fully automatic continuous injection technology for SFP signal pins and high-speed stamping technology for connector terminals, etc. In particular, Upper East Side has successfully researched and developed automation equipment and technology for FPC production, which improves product precision and quality yield. In particular, Yidong Electronics has successfully developed a breakthrough in the core technology of high-reliability LCD terminals and obtained a patent for the invention, which solves the problem of high reliability of the connection between the terminals and LCD displays in harsh environments, and breaks the monopoly of foreign companies on this type of product market situation.
Again, in the development of precision molds and stamping technology, Upper East Side electronic research and development of "precision and high-speed progressive die key technology development and its application in the IT industry" technology to obtain the Guangdong Provincial Science and Technology Third Prize, Dongguan Science and Technology First Prize. The technology has been identified by the Guangdong Provincial Science and Technology Office of the technical indicators have reached the domestic leading and international advanced level, the technical advantage is obvious.
Finally, in terms of LED backlight module products, Yidong Electronics has systematically researched a variety of technologies such as outdoor application backlight, automotive backlight, small and medium-sized backlight, and heteromorphic display backlight, and independently researched and developed high-uniformity technology (surface uniformity), high-brightness enhancement technology, automotive narrow-bezel technology, and automotive die-casting structure development technology, which has strongly enhanced its own related technology and product advantages in the field of backlighting.
At the same time, the company has also developed its own technology and product advantages in the field of backlight.
At the same time, Yidong Electronics has also developed LED backlight module-related manufacturing technologies, including automotive backlight injection molds without ejector structure of the ejector pin technology, composite dot development and processing technology, and other core technologies, in the mold, stamping, injection molding, light guide plate in the field of optics to establish their own unique technological advantages, and play a key role in improving the performance of the product, quality and high reliability. Among them, Yidong Electronics' research and development of "High Uniformity Ultra-thin Light Guide Plate and Mould Technology Research and Industrialization" has won the Second Prize of Dongguan Science and Technology.
The above technologies have outstanding competitive advantages in the industry and are at the industry leading level, and Yidong Electronics continues to invest in technological innovation, which has greatly improved its product competitiveness, production capacity and production efficiency. As of September 30, 2021, Yidong Electronics has obtained a total of 133 patents, including 13 invention patents, 119 utility model patents and 1 design patent.
On the other hand, the R&D team of Yidong Electronics, in conjunction with customers' demands and by anticipating the future development direction of the downstream industry and technology, actively lays out new research and development directions, and carries out technological reserves in advance, in order to keep the R&D technology forward-looking and advanced.
In the emphasis on innovation and R & D, based on the Upper East Side electronics actively seek technical cooperation with domestic institutions of higher learning, and South China University of Technology, Suzhou University and other institutions to establish a good "production, research and use" cooperation system. With advanced technology innovation ability, over the years, Yidong Electronics Technology R&D Center has been named "Guangdong Province Engineering Technology Research and Development Center", "Provincial Enterprise Technology Center", "Dongguan Engineering Technology Research and Development Center" and "Dongguan Engineering Technology Research and Development Center". The center has been named "Guangdong Province Engineering Technology Research and Development Center", "Provincial Enterprise Technology Center", "Dongguan City Engineering Technology Research and Development Center" and "Dongguan City Enterprise Technology Center", which has obvious advantages in technological innovation.
Three, the development of multi-category track to achieve business innovation, the three business segments synergistic development to form a unique competitive advantage
Innovation is the first power to lead the development. Eaton Electronics utilizes the technology it currently possesses to expand new application areas based on its existing products and tap into the new needs of large customers to enter new market segments and realize business innovation.
On the basis of mastering the precision mold design and manufacturing, Yidong Electronics R & D and production of LCD terminal products become an irreplaceable component of the LCD industry, occupying a leading position in the industry, and according to this trend into the field of LED backlight module, the success of another category to open up the track.
At the same time, Upper East Side electronics also rely on precision mold design and manufacturing and stamping technology, and the United States Amphenol Corporation (hereinafter referred to as "Amphenol") in-depth cooperation with its development of the first SFP component products, into the field of high-speed connectors and the formation of a series of products, into the world's leading communications equipment manufacturers.
On the basis of the success of consumer FPC business, Upper East Side has expanded the application field of FPC, and developed the first power battery management system FPC with the leading new energy automobile company***, which has been extended to the whole new energy automobile industry and successfully entered the supply chain of automobile OEMs.
Through the synergy of different products and the innovative development of multiple modes, Yidong Electronics has realized the innovative integration of the three business segments of FPC, connector components, and LED backlight modules, which improves the production efficiency, reduces the production cost, and forms its own unique competitive advantages.
In terms of sales synergy, the three major business segments of Yidong Electronics *** with the collaboration, maximize *** enjoy customer resources and other key resources, for the same customer has different product demand, through the formation of an integrated customer sales solutions, to achieve synergistic sales of related products to the same customer, in order to achieve the maximization of sales volume, and to build a new type of customer relationship to form competitive barriers to block the competitors. Competitors.
For example: Yidong Electronics provides FPC and precision structural parts for BYD, Geer, etc., and provides FPC and precision structural parts for Shantou Ultrasonic Electronics Co. Ltd. (hereinafter referred to as "Ultrasonic Electronics"), Xinhui Kai Technology (Shenzhen) Co., Ltd. (hereinafter referred to as "Xinhui Kai"), etc. to provide three major categories of products, including LED backlight module, LCD connector and FPC, providing customers with integrated solutions for various types of products. The company's products are designed to provide customers with an integrated solution for multiple types of products.
In terms of technical synergy, Yidong Electronics FPC, connector components, LED backlight module products integration of mold design and manufacturing, precision stamping, precision injection molding, hardware and plastic integration, surface treatment, supporting assembly, testing and other technologies and processes, with a variety of product technology research and development, program design capabilities, and can provide three types of products at the same time the synergistic technical support, according to the customer for the product differentiation technology needs to design the optimal solution. We can design the optimal product process route according to the customer's demand for product differentiation technology, and can better meet and solve the customer's demand for multiple types of products technical support.
In terms of production synergy, Yidong Electronics has formed a full-process integrated production mode, that is, according to the product process design route and technical requirements, in the mold design and manufacturing, precision stamping, precision injection molding, surface treatment, supporting assembly, inspection and testing of the core processes, the whole process of independent input equipment and personnel, the rational use of the production process and the organization of the effective convergence of various channels, to improve the overall production capacity of the product. The company's production capacity and rapid response to customer demand.
Four, three significant advantages to ensure the competitiveness of the product market, to ensure sustained profitability
After years of accumulation, Upper East Side electronic products have a significant advantage of precision mold design and manufacturing advantages, advantages of the production process and quality control advantages.
Precision mold design and manufacturing advantages, in the development of more than 20 years, Yidong Electronics has accumulated a wealth of experience in the design and manufacture of precision molds and a large amount of data, the formation of mold design and development of the database, to train a professional mold design and manufacturing team, with a deep technical precipitation.
On the one hand, in the development and design of precision molds, Eaton has a variety of 2D, 3D mold design software and a large number of generalized design software, and self-developed molds and tools, which can improve the speed of mold design and correct rate. On the other hand, in the precision mold processing, Yidong electronic large mold processing accuracy in the domestic leading level, mold parts processing accuracy of up to 0.002mm, the key position of the processing accuracy of up to 0.001mm, the surface roughness of Ra0.02.
In addition, the Yidong electronics have to ensure the accuracy of the mold at the same time to shorten the cycle of the mold, can be to the customer's needs for a rapid response, to provide better product design and design.
Production process advantages, Upper East Side Electronics is one of the few companies in the industry that can provide a full range of manufacturing, its supporting facilities, production processes, covering mold design and manufacturing, precision stamping, precision injection molding, surface treatment, assembly, testing and inspection, and a variety of processes. After years of operation and accumulation, Yidong Electronics has formed a set of scientific and efficient production process system, which makes it possible to guarantee the quality of products under the premise of improving production efficiency and reducing production difficulties.
At present, the precision of the FPC line produced by Eaton Electronics can reach 0.04mm, which can meet the design and production needs of customers with different product structures, and at the same time, improve product quality, ensure product safety, and shorten the delivery time. At the same time, Yeadon's self-developed flexible assembly production process can be quickly switched to produce different types of components, and its production line adaptability to quickly meet the flexible diversity of production needs.
The quality control advantages of Eaton Electronics has established a comprehensive quality management system and a full-flow quality management program to protect the quality of products.
Currently, Yidong Electronics has passed the ISO9001:2015 quality system, ISO14001:2015 environmental system, IATF16949:2016 automotive industry quality management system, QC080000:2017 hazardous chemical substances process management system, GB/T29490-2013 intellectual property management system and other system certification, GB/T23001-2017 two-chemical fusion (informationization and industrialization) system certification, UL certification and product safety certification, to meet the customer's requirements for product quality with high standards, to win the trust of customers.
On the basis of the above, Yeadong Electronics has independently developed a system of high-speed precision stamping and quick mold change technology, with more than 10,000 kinds of LCD terminals and more than 1,000 kinds of SFP components, which can meet the diversified and personalized needs of customers and enhance the stickiness of customers. For more than two decades, ETD has been firmly occupying the leading position in the LCD terminal industry, and its products have been stably applied in high-end fields such as automotive, medical, marine, aviation, etc., with long-term and stable profitability.
In terms of FPC products, Yidong Electronics' consumer FPC has been widely used in Samsung, Huawei, Apple, Xiaomi and Vivo cell phone terminals, and occupies an important market position in battery protection boards and other consumer FPC market segments. Yidong Electronics has developed the industry's first power battery management system FPC with the leading new energy automobile enterprises*** and promoted it to the whole new energy automobile industry, with obvious product advantages.
In terms of LED backlight module products, Yidong Electronics has been cooperating with important customers in the display industry for a long time. Due to the high quality of its products and their high reliability, the products have been widely and stably used in automobiles, medical care, industrial control, handheld terminals, etc., and the market demand has been growing steadily.
In the precision mold design and manufacturing, production process and quality control advantages, to ensure the competitiveness of the Yidong electronic products in the market, has a good reputation in the market, to ensure that the Yidong electronic has a sustained profitability.
Fifth, sitting on the quality and stability of customer resources, orders on hand to help stabilize the development of business
Deep ploughing into the field of precision electronic components for more than 20 years, the ET electronics after many years of quality optimization and branding, has accumulated a large number of high-quality customer resources and has established a good customer relationship with them, and its products are focused on Its products are focused on consumer electronics, telecommunication, new energy, automotive electronics, industrial and medical industries.
Relying on the high quality and international marketing team, Eaton's technology and products are mostly used by Fortune 500 companies or famous enterprises in the industry, covering Asia, America, Europe and other countries and regions. The main customers of Eaton Electronics are characterized by good reputation, large scale, strong strength, and high quality customer resources.
In the field of FPC, Yidong Electronics has entered the supply chain of the world's top five cell phone terminal brands (Samsung, Huawei, Apple, Xiaomi, and Vivo) and well-known new energy automobile industry companies such as BYD and Ningde Times New Energy Technology Co.
In the field of connector components, five of the world's top fifteen connector manufacturers are the main customers of MJD, including TE Connectivity, Amphenol, Molex LLC, Lixin Precision Industry Co.
The company's main end customers include Cisco, HP, Ericsson and other major global communications equipment manufacturers.
In the field of LED backlight module, Yeadong Electronics has become the core supplier of well-known manufacturers such as Pegasus Microelectronics Corporation, ASI Optoelectronics Corporation, Xinhui Kai, Ultrasonic Electronics, Kanghui (Huizhou) Semiconductor Co., Ltd. and other well-known manufacturers, and the main end customers include Toyota, Panasonic, Nissan, Canon, Philips, Volkswagen, Mercedes-Benz, BMW, Hyundai, Mitsubishi, Toshiba, Dajian, Gree, Siemens, Bosch, etc.
It is worth mentioning that the precision electronic components manufacturing industry has a customer certification barriers, downstream large manufacturers not only on the supplier's certification cycle is long, on the supplier's production qualifications, R & D capabilities, production equipment, production capacity, production experience, product quality and so on have certain requirements. At the same time, downstream large-scale manufacturers for product quality and production and management stability and other factors, generally will not easily change suppliers, so as to form a long-term and stable cooperative relationship with the upstream enterprises.
High-quality customer resources to help Yidong Electronics stable business development, with strong market competitiveness and good market reputation, Yidong Electronics also continue to establish cooperation with more new high-quality customers, to protect their own long-term sustainable business development.
From the situation of orders on hand, the orders on hand of Yidong Electronics continued to grow.
From 2018-2020 and January-September 2021, the amount of orders on hand at the end of each period of Yidong Electronics amounted to $143 million, $143 million, $168 million, and $269 million, respectively. In particular, at the end of September 2021, the size of orders on hand of Yidong Electronics increased by 59.79% compared with the end of 2020.
In the future, Yidong Electronics will be based on the precision electronic components industry, while constantly improving product quality and R & D capabilities, expanding the production scale, strengthening the brand, marketing and major customer strategy, vigorously increase market share, become a leader in each segment, and is committed to becoming the world's leading integrated solutions provider of precision electronic components.