Bai Chu Electronics (688188): Leader in fiber laser control system transformation and upgrading

The pioneer of fiber laser cutting control system.

The company is the first private enterprise in the development of a complete set of military fiber laser cutting control system in China. With independent software development as the core, the company integrates with hardware such as board cards, bus masters, and capacitor height controllers for sale.

The company’s main business focuses on laser PC-based motion controllers, including servo systems, board systems, bus systems and other related supporting products.

From 2016 to 2018, the company’s revenue / attribution net profit CAGR was 41.

7% / 36.

1%, gross margin is over 80%.

Relying on a high-quality technical team, the company entered a strategic switching period and set sail for high-power new technologies.

Fiber laser cutting tens of billions of markets, domestically produced forces have risen.

Fiber lasers are the third generation of new-type lasers, with a global compound laser growth rate of 24 between 2013 and 2017.

78%, estimated at $ 2.5 billion in 2020.

The scale of fiber laser industry expansion has been above 60% since 2013, reaching 79 in 2017.

600 million.

At present, domestic production of low-power 南宁桑拿 fiber lasers has basically been achieved, and the number of domestically produced low-power fiber lasers has soared.

High power localization rate 13.

6%, the first decline in imports in 2018.

PC-based motion controllers are the key upstream components of fiber lasers. The domestic compound growth rate in recent years is about 13%, and it is expected to exceed 32 in 2020.

6.3 billion.

Customers & R & D & products build three moats.

1) Product: The company holds about 60% of the domestic low-power laser processing control system market, and the board / follow-up production-sales ratio has remained at a high level.

2) R & D: In 2018, R & D investment accounted for 11%, and R & D personnel accounted for more than half. The core team came from Shanghai Jiaotong University.

The company has 17 patented 杭州桑拿 technologies, 34 software copyrights, 14 software product registration certificates, 32 reserve patents, five independent research and development technologies such as CAD, CAM, and NC, which have reached the international advanced level and can provide a complete set of laser cutting solutions.

3) Customers: We have cooperated with 500 large laser cutting equipment manufacturers, and active customers account for about 60% of the total number of customers in the industry.

The IPO raised a total of 8.

3.5 billion to cultivate new tracks.

Of which 3.

14 ppm for “Bus Laser Cutting System Intelligent Upgrade Project”, 2.

30,000 yuan for “Superfast Laser Precision Micro / Nano Processing System Construction Project”, 1.

97 ppm is used for “the equipment health cloud and MES system data platform construction project”, 0.

Construction of 83 million USD R & D center

$ 3.9 billion to expand marketing network.

The construction period of the bus & ultra-fast laser project is 3 years, and after the completion of production, it will contribute an annual revenue of 9 in total.

500 million (before tax).

Inquiry interval and investment recommendations: We expect the company’s net profit growth rate to be 11 in 2019-2021.

8%, 10.

7%, 15.

9%, corresponding to an EPS of 1.

56、1.

72, 2.00 yuan.

Relative estimation method and comprehensive consideration are given to the company’s PE inquiry range of 27-29 times in 2019, and the inquiry range is 42.

12-45.

24 yuan / share; the reasonable estimate range after listing is 29-32 times, and the reasonable and reasonable price is 45.

24-49.

92 yuan.

Risk reminders: risk of technology and product development, risk of loss of core technical staff and leakage of core technology, risk of intensified competition in the low and medium power laser cutting market, and risk of market development of the high power laser cutting.