Jiechang Drive (603583) First Coverage Report: New Blue Ocean Linear Drive Helmsman Continues High Growth

Jiechang Drive (603583) First Coverage Report: New Blue Ocean Linear Drive Helmsman Continues High Growth

Grasp the North American office core market, manufacturers of high-quality linear drive control systems continue to grow rapidly.

The company is a domestic benchmark enterprise of linear drive control systems, and has led the drafting of industry standards for DC motor push rods.

The foundation of high-quality products was successfully entered into the North American smart office equipment market, and performance continued to rise.

In the past five years, the compound annual growth rates of the company’s revenue and net interest rate were 43.

49%, 58.

twenty one%.

The upstream supply is loose, the downstream customers are of high quality, and the company’s comprehensive gross profit margin is maintained at about 50%.

Net operating cash flow continued to grow with increased revenue, reaching 1 in 2017.

6.9 billion, accounting for about 24% of revenue.

The asset structure is high-quality, the asset-liability ratio is less than 30%, the monetary funds exceed 200 million US dollars, and the total asset share exceeds 30%.

The global office and medical linear drive system market size is nearly 40 billion, with an overall growth rate of about 10%.

The linear drive is convenient and 青岛夜网 efficient to achieve linear displacement of terminal facilities through control and actuators. It is widely used to automatically drive electric beds, nursing beds, and gradually increase the price of TV racks.

Comfortable office has led to ergonomic intelligent office equipment; the acceleration of the global aging rate, the increase in the frequency of medical treatment, and the increase in demand for medical equipment.

It is estimated that from 2018 to 2020, the scale of linear drive products for medical and health care equipment in the global office field will be US $ 177/153, US $ 193/160, and US $ 216.8 billion.

Smart homes further drive market expansion of linear drive products.

Regardless of the incremental market brought by the increase in product penetration, referring to Markets and Markets data, in the next 重庆耍耍网 three years, the use of linear drive products in this field will maintain a growth rate of about 14%.

Raise investment to expand production, break through development breakthroughs, and enter a new stage of growth.

In the first half of 2018, the company’s smart office, medical care, and smart home control system capacity utilization rates were 127.

67%, 124.

91%, 103.

50%, production capacity has become the main factor limiting the company’s performance growth at this stage.

After the investment projects are put into production, the company’s drive system capacity will be 28 at this stage.

160,000 sets, obviously increased to 88.

160,000 units, capacity growth will effectively break through, performance growth is expected to further increase.

Earnings forecast: The downstream demand is strong, the company’s production capacity and new products will be increased in order, and expected results will maintain high growth.

We expect the company to achieve net profit attributable to mothers from 2018 to 20202.

54 and 3.

28, 4.

2.5 billion, EPS 2.

10, 2.

72, 3.

52 yuan / share, the current price of PE 32.

53, 25.

12, 19.


Covered for the first time, initially increase the level of holdings.

Risk warning: The growth of demand from major customers in North America is less than expected, and exchange rate changes drag down performance.

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