Secote co.ltd(SH:603283) Tebon Securities·2024-08-19 12:39Investment Rating - The report gives a "Buy" rating for the company, Saiteng Co., Ltd. (603283.SH), marking its first coverage [1]. Core Views - Saiteng Co., Ltd. is positioned as a leading supplier of automation equipment, benefiting from its deep integration with Apple's supply chain and the ongoing innovation cycle in consumer electronics and semiconductors [2][10]. - The company is expected to see stable revenue growth, with projected revenues of 5.044 billion, 6.132 billion, and 7.347 billion yuan for 2024, 2025, and 2026 respectively, alongside net profits of 785 million, 983 million, and 1.218 billion yuan for the same years [2][3]. Summary by Sections 1. Company Overview - Saiteng Co., Ltd. specializes in the research, design, production, and sales of automation production equipment, primarily serving the consumer electronics sector and expanding into semiconductor equipment [10][22]. - The company has established a strong reputation in the consumer electronics industry, particularly through its partnership with Apple, which began in 2011 [10][22]. 2. Consumer Electronics Business - The company is deeply integrated into Apple's supply chain, with over 50% of its revenue coming from Apple-related sales since 2017 [23][24]. - The upcoming innovation cycle led by Apple, including new product launches like the iPhone 16 Pro and AirPods 4, is expected to drive demand for automation equipment [28][30]. 3. Semiconductor Equipment - Saiteng Co., Ltd. is expanding into the semiconductor equipment market, particularly benefiting from the growth in high-bandwidth memory (HBM) demand due to the rise of AI applications [2][3]. - The acquisition of OPTIMA has allowed the company to enter the wafer inspection and measurement equipment sector, enhancing its product offerings in high-end semiconductor equipment [2][10]. 4. Financial Performance - The company has shown stable revenue growth, with a compound annual growth rate (CAGR) of 36.64% in total revenue and 38.89% in net profit from 2017 to 2023 [16][18]. - The gross margin and net margin have been recovering since 2021, with 2023 figures at 46.92% and 15.59% respectively [18][19]. 5. Profit Forecast and Valuation - The report forecasts dynamic price-to-earnings (PE) ratios of 14, 11, and 9 for the years 2024, 2025, and 2026, respectively, indicating a favorable valuation given the company's strategic position in the automation equipment market [2][3].