Bai Chu Electronics (688188): a leading company in domestic laser cutting control system

Bai Chu Electronics (688188): a leading company in domestic laser cutting control system

Key points of investment Domestic laser cutting complete control system leading company. The company 杭州桑拿網 is a leading enterprise in the development of domestic military optical fiber laser cutting complete control system. It is committed to providing stable and efficient automatic control solutions for laser processing. The main products include servo control systems, boardsCard control system, bus control system and other related laser control supporting products.

The company has been in the laser industry for many years, and its customers cover more than 60% of domestic laser equipment manufacturers. Its major customers include Foshan Hongshi and Shenzhen Dineng.

The added value of the product is high, and the comprehensive gross profit margin has remained above 80% for three consecutive years.

Realized revenue in 2018 2.

4.5 billion, net profit attributable to mothers1.

3.9 billion.

In 2016-2018, the annual compound intensity of revenue reached 42%, and the net profit attributed to mothers achieved an annual compound intensity of 36%.

The company plans to raise investment 8.

4 billion funds to expand production capacity and strengthen marketing capabilities.

Laser cutting equipment is widely used, and the market size of the control system will reach 3.7 billion in the next three years. Compared with traditional processing technology, laser processing has the advantages of wide applicable objects, small material deformation, high processing accuracy, and low advantages.

According to different purposes, laser processing can be divided into different processes such as laser cutting, laser marking and laser welding. It has been widely used in materials processing, communications, research and development, military, medical and other fields.

Among them, laser cutting technology accounts for more than 40% of the total scale of industrial laser processing, and is an important application technology in the field of laser processing.

The laser cutting control system is the key to realizing laser processing, integrating technologies including CAD, CAM, NC, sensors, and hardware design.

In 2018, China sold 28,500 low- and medium-power laser cutting equipment and 6,000 high-power laser cutting equipment.

The inventory update superimposes natural growth demand. We estimate that the market size of low- and medium-power laser cutting control systems will total approximately 1.5 billion in 2019-2021.

The high-power laser cutting control system market size totals about 2.2 billion in 2019-2021, and the total market size in two three-year periods reaches 3.7 billion.

The three advantages of technological advantages, customer reputation, and market resources help the company’s new business development. The mid- and low-power laser cutting market has reached approximately 60% of domestic cities in 2018. At the same time, low- and medium-power downstream applications have gradually increased, and the market has continued to expand.
With the gradual reduction of costs, high-power laser cutting equipment has gradually expanded in recent years.

For control systems, high-power products have higher requirements in many aspects such as automation, intelligence, and safety.

At present, the high-power laser cutting control system is still responsible by international manufacturers.

In terms of technology, the company has a complete grasp of five key technologies.

We can provide a complete set of laser cutting solutions. In terms of customer reputation, the company is a leader in low- and medium-power laser cutting systems. Good reputation and customer stickiness motivate the company to develop high-power markets with downstream customers. In terms of market resources, the company actively works with the industrial chainUpstream and downstream cooperation to form an ecosystem of laser processing industry.

Three major advantages have helped the company’s high-power business development. From January to May 2019, high-power business revenue has reached 10.11 million yuan, an increase of + 83%.

In addition, the company is also at the forefront in the development of ultra-fast laser control systems. The recently launched FSCUT7000 precision machining system products have achieved small-scale sales and realized the gradual landing of fundraising projects. The company has promising prospects in the ultra-fast laser control field.

Profit forecast and company estimate: From 2019 to 2021, it is expected that the company’s domestic mid- and low-power cities will continue to grow, reaching 65% / 70% / 75%, corresponding to revenue 2.

79/3.

48/4.

26 ppm; high-power and ultra-fast laser processing businesses are also gradually opening up the market space.

The company’s revenue is expected to be 3 in 2019-2021.

07/4.

13/5.

320,000 yuan, net profit attributable to the mother is 1.

77/2.

36/3.

04 billion.

The company’s PE is estimated to be 50-66 times, and the corresponding market value interval is 88.

5-116.

800 million. Risk reminder: intensified competition in the low and medium power products market