Secote co.ltd(603283) 诚通证券·2025-02-20 11:37Investment Rating - The report gives a "Buy" rating for the company, citing its core supplier status for Apple's 3C automation equipment and expected benefits from Apple's innovation cycle and progress in the semiconductor testing field [8]. Core Insights - The company has been deeply engaged in the automation equipment industry for over 20 years, focusing on consumer electronics, semiconductors, and new energy sectors [19][24]. - The company achieved a revenue of 4.446 billion yuan in 2023, with a five-year CAGR of 39%, and a net profit of 687 million yuan, with a five-year CAGR of 54% [1][24]. - The company is expected to continue receiving large orders for front-end modules in 2024, with revenue from terminal products like headphones and smartphones projected to grow year-on-year [1][24]. Summary by Sections Company Overview - The company specializes in providing intelligent manufacturing solutions and has expanded its business from consumer electronics to semiconductors and new energy through acquisitions [19][24]. - The company has established a strong relationship with Apple, becoming a qualified supplier in 2011, which has significantly contributed to its growth [2][19]. Financial Performance - In 2023, the company reported a revenue of 4.446 billion yuan, with a year-on-year growth of 51.8% [24]. - For the first three quarters of 2024, the company achieved a revenue of 3.194 billion yuan, representing a year-on-year growth of 21.76% [1][24]. - The company’s gross margin has remained high, with a gross margin of 46.92% in 2023 [27]. Consumer Electronics Sector - Consumer electronics accounted for 92.8% of the company's revenue in 2023, making it the primary source of income [2][29]. - The company has extended its product offerings to include assembly and testing equipment for front-end modules and components, enhancing its vertical integration in the supply chain [2][29]. Semiconductor Testing - The company has entered the high-end semiconductor testing equipment market through the acquisition of Optima, achieving significant progress in wafer and HBM testing [3][4]. - The company has received bulk orders for HBM testing equipment from overseas clients, with expected delivery in the first half of 2025 [3][4]. Growth Logic - The company has maintained a strong relationship with major clients, with over 50% of its revenue coming from key customers from 2017 to 2023 [4]. - The global smartphone market is expected to grow rapidly, driven by advancements in AI technology, with IDC predicting a CAGR of 78.4% for GenAI smartphones from 2023 to 2028 [5][6].