1. Main business score: 70
1. business analysis: the company's main business is testing equipment in the production process of flexible printed circuit boards, including semi-automatic equipment (test fixture) produced in small batches in the early stage and fully automatic equipment and related accessories and maintenance in the later stage. At present, more than 80% of the company's customers come from Apple and Apple's industrial chain companies. On the one hand, the main demand comes from the transformation of the original equipment (based on the reuse of some equipment). Because FPC test equipment is non-standardized and customized, one test equipment can only be used to test a specific flexible printed circuit board. When customers need to test the new flexible printed circuit board, they must buy new equipment to meet the new test requirements. However, every flexible printed circuit board has a certain production cycle. At the end of the production cycle, this flexible printed circuit board test equipment will be idle. For the sake of cost, customers will choose to transform idle machines to meet the demand of new flexible printed circuit board test equipment at a lower cost. On the other hand, it comes from the customization of new equipment. The main demand for flexible printed circuit boards comes from consumer electronic products. When general new products are introduced, the equipment of relevant industrial chains also needs to be changed. In addition, new energy vehicles and communication equipment have been used. Therefore, the growth of the company's performance is also closely related to the sales of consumer electronic products, the speed of technology update and the launch of new products of the head office.
2. Industry competition pattern: The technology of competitors in FPC industry is uneven, and the threshold of high-end market is high. Some competitors start late and have small scale, and there are some problems such as weak R&D ability, lack of core technology, self-made equipment and insufficient experience in project implementation. However, in the high-end application fields such as the core testing technology of world-renowned manufacturers, due to the complex technology, the requirements of customization and intelligence are high, and the entry threshold is high. Several domestic peers are good at different fields, such as precision electronics and Huaxing Yuanchuang, focusing on the detection field of LCD panel industry, and then infiltrating semiconductor equipment. Changchuan technology focuses on the field of semiconductors. Bojie shares have certain competition with the company's business, but its products are not the same. To sum up, all peers will focus on a certain subdivision of production links, but after the intensification of industry competition, they will penetrate each other, so there will be direct competition. The core strength of the company focuses on the testing of soft boards.
3. Industry development prospect: With the continuous innovation of domestic consumer electronics products, the integration and intelligence of related products are getting higher and higher, and the demand and penetration rate of flexible boards will gradually increase, but the speed will not be fast. After all, the cost of flexible board is higher. In addition, in new application markets, such as new energy vehicles, communication equipment, etc., once it is listed in large quantities, it is expected to bring greater growth to the industry, but there is no great demand for a certain product in the short term.
4. The logic of the company's performance growth: (1) Consumer electronics sales growth; (2) improving the permeability of 2)FPC; (3) The demand for FPC from new energy and communication equipment has increased.
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Two. Corporate governance score: 70
1, major shareholders' shareholding and equity pledge, and executive incentives: both major shareholders and couples have technical backgrounds, with a total shareholding of slightly more than 50%, employees and executives holding about 3%, and the average salary of executives is about 700,000-800,000 yuan, so the overall incentives are appropriate.
2. Personnel composition: mainly technical and production personnel. Test equipment requires high technology development and implementation, and is highly dependent on technology and sales personnel. This is a labor-intensive industry. The company's per capita income is 540,000 yuan, which belongs to the middle level, and its per capita net profit is nearly 6,543,800 yuan+6,000 yuan, which belongs to a high level in the industry.
4. Shareholder's responsibility (financing and dividend): After listing for one year, the dividend in that year accounts for 70% of the net profit, and the dividend rate is good.
Three. Financial analysis score: 75
1, balance sheet (key subject): the company's book cash exceeds 1 billion, which is very abundant, and accounts receivable and inventory account for a reasonable proportion of operating income; Customized equipment has less investment in fixed assets, no interest-bearing liabilities, and the debt ratio is less than 5%. The overall asset structure is very healthy.
2. Income statement (key subjects): In 2020, the revenue and net profit increased against the trend, and the revenue continued to grow at a high speed in the first three quarters of 202/kloc-0, but the 202 1 net profit of 39 million yuan came from non-recurring gains and losses, and the net profit after elimination was 4 1 10,000 yuan, down 24% year-on-year (in the first three quarters of 2020,
3. Analysis of key financial indicators: The company's return on net assets continued to decline in the past two years, mainly due to the expansion of listed assets. The gross profit margin remained stable as a whole, but the expense ratio increased significantly. Rely on investment income to barely maintain a high net profit, and competition will intensify in the future. Whether the company can maintain a high net profit rate still needs continuous observation.
Four. Growth and valuation analysis score: 70
1. Growth: Considering the demand growth space of FPC industry and the steady increase of penetration rate, the company's competitiveness in the industry is more prominent, but the competition intensifies or damages the company's profitability, and the overall growth is mainly steady growth.
2. Valuation level: Based on the company's fixed equipment industry attributes and future growth expectations, the company is given a price-earnings ratio of 25-35 times.
Verb (abbreviation of verb) investment logic and risk warning
1, investment logic: (1)FPC industry grows steadily, and the penetration rate continues to increase; (2) The company has leading technology and outstanding customer advantages; (3) Stable performance growth and low market value.
2. Core competitiveness: (1) innovative R&D advantages; (2) Customer advantage; (3) the product quality is stable; (4) Advanced and efficient technology development platform.
3. Risk warning: (1) R&D failure risk of major projects; (2) Apple's dependence and income growth risk; (3) competition intensifies the risk of gross profit decline; (4) Cross-bank competition risk.
Overall evaluation of the company by intransitive verbs (total score 7 1.25)
Rating standards: AAA 85, AA: 77-84, A: 70-76; BBB:60-69，BB:55-59，B:50-54； CCC and below 49