Secote co.ltd(603283) 国元证券·2024-12-10 00:35Investment Rating - The report assigns a "Buy" rating to Saiteng Co Ltd (603283 SH) with a target price of 72 38 RMB [6][9] Core Views - Saiteng Co Ltd has diversified its business into consumer electronics semiconductors and new energy sectors through strategic acquisitions [3] - The company is deeply integrated into Apple's supply chain with over 50% of its revenue coming from Apple-related business [3] - Saiteng has entered the high-end semiconductor inspection equipment market through the acquisition of Japan's Optima and is well-positioned to benefit from the AI-driven demand for HBM and other advanced semiconductor technologies [4][5] - The company is expected to benefit from the rapid growth in the new energy vehicle and photovoltaic industries [5] Business Segments Consumer Electronics - Saiteng's consumer electronics business is closely tied to Apple with over 50% of its revenue coming from Apple-related products [3] - The company is expected to benefit from the recovery in Apple's supply chain and the launch of new products such as the iPhone 15 series and Apple Vision Pro [3][5] - Revenue from consumer electronics is projected to grow from 46 19 billion RMB in 2024 to 60 00 billion RMB in 2026 with a stable gross margin of around 48% [107] Semiconductor Equipment - Saiteng entered the semiconductor equipment market through the acquisition of Japan's Optima in 2019 and has since expanded its product line to include HBM and other advanced semiconductor technologies [4][5] - The company has secured batch orders from major clients and is expected to see significant growth in its semiconductor business with revenue projected to increase from 5 80 billion RMB in 2024 to 12 99 billion RMB in 2026 [107] - The gross margin for the semiconductor business is expected to improve from 48 5% in 2024 to 50% in 2026 [107] New Energy - Saiteng's new energy business is focused on the automotive and photovoltaic sectors with revenue expected to grow from 0 56 billion RMB in 2024 to 0 67 billion RMB in 2026 [107] - The company is well-positioned to benefit from the rapid growth in the new energy vehicle market and the increasing demand for photovoltaic equipment [5][107] - The gross margin for the new energy business is expected to remain stable at around 25% [107] Financial Projections - Saiteng's total revenue is projected to grow from 52 64 billion RMB in 2024 to 73 79 billion RMB in 2026 with a CAGR of 18 39% [6][107] - Net profit is expected to increase from 8 11 billion RMB in 2024 to 11 66 billion RMB in 2026 with a CAGR of 18 13% [6][107] - The company's PE ratio is expected to decline from 18x in 2024 to 13x in 2026 indicating potential undervaluation compared to industry peers [6][113] Industry Insights - The global semiconductor equipment market was valued at 1 062 5 billion USD in 2023 with China being the largest market at 366 6 billion USD [4][78] - The demand for HBM and other advanced semiconductor technologies is expected to grow significantly driven by the AI boom [5][97] - The new energy vehicle market in China is expected to continue its rapid growth with sales reaching 944 8 million units in 2023 and the photovoltaic market is projected to reach 507 GW globally by 2024 [100][103]