2020-11-28

Hongya CNC (002833): Leading domestic woodworking machinery companies are trying to replace domestically

Hongya CNC (002833): Leading domestic woodworking machinery companies are trying to replace domestically

The company is a leading enterprise of woodworking machinery and equipment.

Since its establishment, the company has focused on the research and development, production and sales of panel furniture machinery and equipment.

Through rapid development of product technology innovation and business model innovation in the traditional industry of woodworking machinery, it has formed alternative competitive advantages in technology research and development capabilities, product quality control, brand influence, cost control, etc.Ranked among the top in the comprehensive competitiveness evaluation.

The company’s operating income from January to September was 9.

85 ppm, a five-year increase of 5.

92%, net profit attributable to mother reached 2.

53 ppm, an increase of ten years.

91%. According to the overall industry situation in the fourth quarter, the company is expected to maintain a positive growth rate for a long time.

Downstream conditions have picked up.

Since September 2019, the actual completed area has continued to narrow, gradually shifting from -10% from January to August 2019, and gradually changing to -4 from January to November 2019.

The 5% increase and the decrease range continue to narrow. We believe that the actual completion will bring furniture demand in the future, thus replacing woodworking furniture equipment. The industry may continue to exceed expectations in the future.

The future of domestic alternatives continues to work hard.

In order to maintain the company’s R & D and innovation advantages, the company continued to increase its R & D investment.In the first half of 2019, the ratio of R & D investment to operating income was 4.
.

14%, an annual increase of 179.

64%. At present, there are self-developed core technology substitute products such as automatic tracking profiling control system as a whole, and high-speed flexible ruled square edge banding production lines, through-type CNC drilling, and high-speed heavy-duty composite machining centers.The company’s core technology product revenue accounted for more than 80% of its operating income in three years.

At the same time, through extension, the company acquired Guangzhou Wangshi Software Technology Co., Ltd. in cash in 2018 (Guangzhou Wangshi is a software company focusing on the development and application of intelligent motion control systems for woodworking machinery. At present, the furniture machinery application software it has developed has been integrated intoThe company’s new CNC products have been highly recognized by the market for their processing efficiency and stability.

) And Italian MASTERWOOD S.

P.

One.

(75% equity, 1596.

270,000 Euros. The core products are CNC machining centers and customized wooden doors and windows production lines. The products have high brand awareness in Europe and the Americas.

), Becoming the controlling shareholder of the subsidiary, absorbing and improving the company’s technological capabilities. In 20重庆耍耍网19, the company acquired Sichuan Danya to enhance the company’s ability to make key components and continue to enhance its capabilities.

At present, the woodworking machinery industry is mainly replaced by German, Italian, and Chinese equipment manufacturers. Overseas giants such as Haomai Technology, SCM, Bias, etc. still occupy a certain market share in China, especially in listed large furniture companies. WeIt is expected that with the continuous improvement of Hongya CNC’s technical capabilities, continuous optimization of solutions, and increased customer recognition, the company is expected to continue to make domestic substitution in recent years.

Profitability forecast and estimation.

We believe that the company’s strategy is clear, sustainable, expanding business development, responding to changes in market 天津夜网 demand, and firmly optimistic about the company’s future development.

We estimate that the company’s net profit attributable to shareholders of the parent company will be 2 in 19-21.

93, 3.

7, 4.

7.7 billion, with EPS of 2.

16, 2.

73, 3.

52, corresponding to an estimate of 20, 16, 12 times. Maintain BUY rating.

Risk Warning: The downstream economic situation is lower than expected, and the equipment import substitution rate is lower than expected.