Military industry logic:
1. The international situation is becoming increasingly complex and the "14th Five-Year Plan" for the military industry is expected to exceed expectations under the background of domestic economic circulation. New equipment is increasing in volume and domestic substitution will support the long-term bullishness of military industry.
2. The "fundamental reversal of fundamentals and upward logic of prosperity" of military industry has been confirmed in the Q3 quarterly report again, but looking back at 2020, the military industry sector only rose strongly at 7.06-8.10, with an increase of 50%, and an excess return of 37%.
then entered the consolidation period, with the military industry index falling by 12.9% from 8.10 to 11.23. The pullback digested the risk of excessive growth, and also brought good opportunities for high-quality companies to intervene, reflecting the market's neglect of the current economic cycle changes in the military industry.
3. As the market risk preference increases, the military industry's New Year's Eve market is about to break out, and the leaders of the high-prosperity track will take the lead in ushering in the valuation switching market. Equipment upgrades and domestic substitution accelerate, upstream new materials and military electronics are facing good opportunities for development.
Sushi Experiment—Military Industry's "high performance elasticity + double improvement in valuation" company
, Sushi Test : The leading enterprise in the domestic vibration table industry
Sushi Test is a mechanical environmental testing equipment and solution provider. It is committed to the research and development and production of mechanical environmental testing equipment and provides customers with comprehensive environmental and reliability testing services. It is one of the leaders in my country's mechanical environmental testing equipment industry.
. The company adheres to the dual-wheel drive of "equipment + service", and has a clear development direction
The company has transformed from manufacturing to manufacturing service industry as a whole. Products have transformed from mechanical testing to mechanical testing, climate testing, and comprehensive testing, and transformed to intelligence; the market has transformed from globalization and internationalization. The company's vibration testing equipment leads its domestic peers, establishing stable growth in equipment sales business. As a leading domestic vibration testing equipment company,
has strong R&D and manufacturing strength, which can provide strong technical support and fully equipped testing equipment for the testing service business, and can better understand and meet the needs of test service customers, and provide integrated solutions from test technical solution design, test implementation to test data acquisition and analysis.
. Acquisition of Yite Technology and expand the coverage of the inspection business
Yite Technology Co., Ltd. . It was founded in 1994 and started with IC line error removal and modification. Yite is a leading semiconductor third-party testing enterprise. The company's business scope includes failure analysis, reliability verification, material analysis, etc., providing a complete verification and analysis engineering platform and full-service. The customer base includes upstream IC design in the electronics industry to mid- and downstream finished products.
Yite adheres to a differentiation strategy to maintain competitive advantages. We provide more complete one-stop solutions for existing customers, respond to the technological trends of the times, explore business fields related to the Internet of Things, automotive electronics, and wearable devices, and our service customer base includes upstream IC design in the electronics industry, wafer manufacturing, packaging and testing manufacturing to downstream terminal finished products.
With the rise of cloud intelligent (AI) mobile devices/Internet of Things/Internet of Vehicles, Yite not only focuses on core services, but also pays attention to the diversified development trends of domestic and internationally, and builds the only complete automotive chip verification platform, high-speed transmission signal testing, etc. In recent years, the company has expanded its business to emerging fields such as the Internet of Things and automotive electronics, and has begun to get involved in the wafer back-end process flow.
. Under the background of military-civilian integration, the semiconductor detection military industry market has a vast potential capacity
Sushi test Through this acquisition of Yite (Shanghai), the company has obtained all the production capacity and technical advantages of Yite (Shanghai). Supports a full set of testing services and is ahead of domestic peers. At the same time, due to Yite (Shanghai)'s strong talent base, there are many downstream customers.
has obvious advantages in the industry. In recent years, the mainland electronics market has made rapid progress, with a greater theoretical market space than Taiwan, and is expected to outperform and surpass others.
(I) Equipment business is based on the extension of service business, and the two wings fly together. The company's main products include various mechanical, climate and comprehensive environmental testing equipment, which are used to simulate mechanical, climate and comprehensive environmental conditions such as vibration, impact, fall, collision, temperature, humidity, etc., to assess the quality and reliability of industrial products, and are widely used in many fields such as electronics, automobiles, rail transit, aerospace, and ships. In 2019, the company's experimental equipment business achieved operating income of 402 million yuan (51%), with an average annual compound growth rate of 19.3% from 2014 to 2019, and the gross profit margin basically remained above 33%. Relying on the technical advantages accumulated by the equipment business, we extend our testing service business and are committed to providing integrated environmental and reliability testing service solutions. Relying on the manufacturing and R&D advantages accumulated in the field of test equipment, the company has entered the field of test services and has gradually built third-party environmental and reliability laboratories in Suzhou , Beijing, Guangzhou, Shanghai, Chengdu, Xi'an, Wuhan and other places since 2006. The test scope covers major projects such as mechanical environment and reliability tests, climate environment and reliability tests, temperature/humidity/vibration composite environment tests, etc., such as product environment and reliability tests, electromagnetic compatibility tests, material performance tests, software evaluations, etc. In the past six years, the company's pilot service business revenue increased from RMB 75 million in 2014 to RMB 366 million in 2019, with a compound growth rate of 37.4%. In 2019, the pilot service business revenue accounted for 46%, and the proportion in the first half of 2020 further increased to 49%, which has developed into another important performance support for the company. Compared with the equipment business, the service business is more profitable, and the gross profit margin is basically maintained at a level above 55%.
Company's testing equipment and testing service business is widely used in the downstream, and has many high-quality customers: In 2019, the company's revenue from electronics and electrical appliances, scientific research and testing institutions, automobiles and rail transit, aerospace and shipbuilding industries accounted for 43%, 26%, 12%, 9% and 2% respectively. The company has thousands of high-quality customers in the above fields, including China Aviation Industry Corporation, China CRRC , BYD , China Shipbuilding Industry Corporation, China Electronics Technology Group and Huawei , etc.
opens the entire industry chain, and has mutual penetration of advantageous fields, and the synergy effect is significant: Sushi Test downstream application scenarios are mainly electronic and electrical testing. After the acquisition of Shanghai Yite, the company's electronic and electrical reliability detection coverage area has further moved forward, opening up the entire process of reliability analysis from the front-end detection of electronic components products to terminal product. Su-Test Test can use the technology, equipment and talent advantages of Yite Test to upgrade the technology and business of electronic components reliability analysis, failure analysis and material analysis, and the company's equipment is expected to be used in Yite Testing Service to achieve domestic substitution. In addition, Yite Test has built a complete single-chip/multi-chip/system-level packaging and board-level reliability verification, and the company will successfully enter the automotive electronic inspection market. Yite Test is also expected to enter the military industry field with higher profit margins by co-building a laboratory with Su-test test . The two are expected to exert significant synergies in the field of testing and scope of testing capabilities, and enhance their overall competitiveness.
s0000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000 To achieve full production status; Qingdao Guangbo is the main body of the Northern Testing Center construction project, and is still under construction. Suzhou Guangbo Wuhan Branch is carrying out construction of Wuhan laboratory, which is expected to be completed in 1.5 to 2 years. Northern Testing Center is expected to reach production in the third year, and Wuhan laboratory is expected to reach production 100% in the fourth year. In addition, the Nanjing Laboratory Project and the first phase of the Chengdu Laboratory Project are also under construction. According to the company's announcement, after the laboratory network reconstruction and expansion project, the Northern Testing Center, and Wuhan Laboratory Project reach full production, the net profit rate of individual laboratories or testing centers is expected to reach about 23% to 30%, and profitability has huge room for improvement. As the above projects are put into production one after another and reach full production, the company's experimental service capabilities are expected to be further enhanced, and it is expected to start the growth model of "revenue scale growth + profit increase".
Content from:
Chuang Securities' " Su-test Test (300416) In-depth Research Report: Dual-wheel drive of endogenous and external extension, comprehensive layout opens a new chapter" analyst - Zhao Zhiming (Securities Practice No. S1010512070001)
Disclaimer: The above content does not constitute investment advice, and it is used as the basis for investment. If any losses occur, the author will not bear any responsibility!
