Ruichuang Micro / Nano (688002) Investment Value Analysis Report: Domestic infrared industry leader military and civilian demand promote development

Ruichuang Micro / Nano (688002) Investment Value Analysis Report: Domestic infrared industry leader military and civilian demand promote development
In the 2019nCoV epidemic, infrared thermal cameras with non-contact temperature measurement functions have played a major role in preventing epidemics, and have been replaced by the State Council’s key materials for epidemic prevention.Rui Chuang Micro and Nano related products have integrated the front line of epidemic prevention, helping the epidemic prevention work to usher in new opportunities for development.In addition, the company is a national infrared leader, and its technological level is gradually catching up with major overseas manufacturers. The total sales of detectors, movements and complete machines are leading in the country. It is expected to continue to benefit from the strong infrared demand in the military and civilian fields.  For the first time, the domestic non-cooled infrared thermal imaging leader with an investment rating of “Buy” is currently in a rapid growth stage.Infrared thermal imaging is performed by converting the thermal radiation of the surface of an object into a digital signal and displaying it as an image. It can be detected in a lightless environment. It is a rigid requirement in national defense and security scenarios. The core technology is controlled by a small number of countriesAdjustment, of which the non-refrigerated type has a higher expansion rate due to its small size and size (especially for civilian scenarios).Ruichuang Micro / Nano was established in 2009, and gradually mastered the core technology of uncooled infrared thermal imaging. In 2015, it began mass production of uncooled infrared chips and detectors, and developed core and complete machine business; 2016?In 2018, the company’s revenue from 0.6 ppm increased to 3.800 million, net profit from 0.100 million to 1.3 trillion, 2 years CAGR are 153% / 254%, the company expects 2019 performance to increase by + 62%, continuing high growth. Industry trends: Infrared thermal imaging is widely used, and military and civilian needs continue to expand.The company’s uncooled infrared thermal imaging technology is simultaneously used in the military / civilian field. According to Maxtech International’s forecast, the global military and civilian infrared product markets in 2019 will be $ 9.3 billion and $ 5 billion, respectively.1) Military field: The high expansion rate of infrared equipment has been realized. The domestic military equipment upgrades require infrared products. The specific application areas include night vision gun sighting, precision guidance, photodiodes, and ADAS.2) Civil field: At present, the demand is concentrated on security and overseas hunting scenarios. The human body temperature screening under the influence of the 2019nCoV epidemic is also just needed. In the future, there is also ample space for vehicle, fire, and power detection.On the whole, the uncooled infrared thermal imaging market is in the early stage of accelerated expansion. As mature technology brings costs to the downside, downstream customers’ demand for infrared equipment will be accelerated. Core advantages: Leading domestic technology capabilities, catching up with global frontline echelons.Currently, only a few countries such as China, the United States, France, and South Korea can commercialize uncooled infrared technology. Among them, European and American manufacturers such as FLIR occupy a major share of the world.At present, overseas manufacturers have control policies for domestic exports, and the company is accelerating to catch up with overseas leading companies, and compares the four advantages of technology, packaging, mode, and integration that domestic manufacturers have resolved: 1) Technology: The company’s detector products are in pixel size, Size, sensitivity, performance and other aspects have reached the domestic leading level. The company developed a 10um detector product in 2019, which basically caught up with the current level of major overseas manufacturers.2) Packaging: The company’s wafer-level packaging process has begun mass production, leading domestic counterparts.  3) Mode: The company adopts the “Fablite” production mode and controls the chip design, key processes, and proprietary equipment by itself. At the same time, the cooperation between wafer manufacturing and foundry can 深圳spa会所 reduce costs and achieve rapid expansion of production capacity;) Integration: The company is the first domestic manufacturer to realize digital output capability on the chip, and at the same time, it actively promotes the ASIC of the movement module to further reduce the driving cost.Based on the above advantages, the volume of the company’s products has grown rapidly, with a total sales volume of 5 in 2018.690,000 units / set, leading domestically, and higher profitability than domestic counterparts. Business progress: The military and civilian business grew simultaneously and rapidly, and the company has strong growth momentum.The company has leading domestic counterparts in products and technology, and the military and civilian business is developing rapidly.1) Military 无锡桑拿网 products business: The company has participated in the development of multiple military products since 2013 and has entered a stable supply period. The company’s 2018 military products revenue1.13 ‰, an increase of more than three times each year, benefiting from the successive mass production of multiple military products, the increase is clear within 3 years.2) Civil field: The company mainly develops the security market in China. Security leader Hikvision has become the company’s largest customer, accounting for 22% of its revenue in 18 years. Overseas, the company is optimistic about the prospects of the hunting market and vigorously expands its products. 2018年 年海外收入高增长,营收占比两年+16。5.  In addition, during the new pneumonia epidemic in 2020, the company returned to work urgently to provide infrared thermometers and temperature measurement modules for the first-line epidemic prevention of hospitals and airports, which ushered in new development possibilities while helping to prevent epidemics. Risk factors: waste of raw materials under the influence of the epidemic; high customer concentration; less than expected military products; etc. Investment suggestion: Benefiting from the rapid growth of the whole machine business brought by the development of downstream scenarios and the mass production of military products, the company is still in the rapid development stage. We predict that the company will be in 2019Net profit in 2021 is 2.0/3.0/4.30,000 yuan, the corresponding EPS forecast is 0.46/0.68/0.97 yuan.We are optimistic that the market space will expand rapidly after the cost of infrared products is reduced in the future, and in the leading domestic position, we give the company PE = 72 times in 2020, corresponding to a target price of 48.96 yuan, covering for the first time, giving a “buy” investment rating.