Jingwang Electronics (603228): Growth of PCB Leading Enterprises under Complete Competition
The growth rate of investment logic company FPC and automotive electronics products is outstanding: from the product structure point of view, the company’s FPC revenue CAGR reached 37 in 13-17.
2% for the whole year 24.
2% growth rate, the company’s acquisition of 51% stake in Zhuhai, a win-win subsidiary of Lixin Precision in H2 in 2018, will further expand FPC production capacity, merge the company’s high-quality product quality and the company’s advanced management level, and grow;, The company’s automotive PCB growth rate reached 32 in the past five years.
3%, benefiting from the future trend of automotive electrification and intelligence, the automotive PCB business track is long and wide, which will further ensure the stability and durability of the company’s growth.
The company is the most competitive leading company in the domestic PCB industry: a comprehensive comparison of the company with other domestic leading PCB companies, the company’s ROE and ROIC (first), customer fragmentation (second), revenue growth rate (third),Growth rate of net profit attributable to mothers (third), gross profit margin (third), net profit margin (second).
The company is good at fine management and stable operating style, and has grown into the most competitive enterprise in the domestic and global PCB industry.
“Smart factory + capacity expansion”, the company has ample growth momentum: the company ‘s new Jiangxi second plant, which was put into operation in 2018, is the most automated production line in the industry, and the per capita output value is expected to exceed 2 million per person, about three times the industry average, Smart Factory will significantly improve the company’s profitability.
In addition, the company’s production capacity continues to expand. The Jiangxi No. 2 Plant has an annual production capacity of 2.4 million square meters and will reach capacity in 2020. It will also continue to expand its production capacity in Zhuhai. 10,000 square meters HDI, 1.2 million square meters FPC.
The company’s capacity release in 2019 will be the peak in recent years, and it is expected that it will be transformed into the production of a new production line with high automation rate in the future, and the company’s revenue and profits will usher in a period of rapid growth.
The investment proposal estimates that the company’s revenue for 2018-2020 will be 50.
1.3 billion, net profit attributable to mothers was 8.
470,000 yuan, corresponding PE is 32 ×, 25 ×, 21 ×.
Considering the size of the company, the growth rate must be significantly better than the industry average. As long as a certain leading premium, we give the company 30 × PE in 2019 with a target price of 74.
43 yuan, covering the buy rating for the first time.
The risks indicate that the downstream demand is less than expected, the company’s capacity release and the risk of digestion progress are less than expected, and the new factory yield climbs below the expected risk.