Jiechang Drive (603583): Linear drive, high-quality domestic manufacturers, high market potential

Jiechang Drive (603583): Linear drive, high-quality domestic manufacturers, high market potential

Event: The company released the 2018 performance forecast, and it is expected that net profit will be returned to the mother in 20182.


580,000 yuan, a 57% increase in ten years?
63%; net profit after deduction to mother 2.


54 ppm, 59% increase in ten years?
66%; of which Q4 single-quarter net profit is 0.


980,000 yuan, an increase of 87% in ten years?

The rapid growth of the company’s performance was mainly due to vigorous expansion of domestic and foreign markets, promotion of product innovation and upgrading, and expansion of sales scale.

Leader in the domestic linear drive industry, with continued high growth: The company’s main product is a linear drive system, consisting of push rods, lifting columns, supporting controllers and other parts. It is widely used in medical, smart office, smart home and other equipment intelligent control.
The main products can be divided into medical health care drive systems, smart office drive systems and smart home control systems according to application fields.

The company’s products are mainly direct sales and export sales. Under the background of the company’s vigorous expansion of overseas markets, overseas sales account for a relatively high proportion. In the first half of 2018, the company’s overseas sales accounted for 79%.

Against the background of the high prosperity of the industry, the company has achieved rapid development. From 2012 to 2017, the company’s revenue and performance compounded growth rates reached 50% and 65%.

The demand for linear actuators is strong, and the company has a bright future.

Linear drive is the core component of smart terminal motion control. High-end industries such as smart office, medical care, and smart home will drive the company’s rapid growth.

According to the data of “GLOBALACTUATOR MARKET” released by the world-renowned research company TECHNAVIO, the global linear actuator market size in 2015 was 16.

6 billion US dollars, is 杭州桑拿网 expected to grow to 23 by 2020.

200 million US dollars, annual compound strength is 6.

9%, the market prospect is good; North America’s linear drive market share accounts for the entire global 21.

8%, the Asia-Pacific region represented by China and India has growing demand for smart products.

At present, the company’s market share in medical health care, smart office, smart home and other fields is relatively small, and the future development prospects are broad.

Leading companies in core technology patents, equity incentives show confidence: The company is a domestic leader in linear drive systems, with 283 patents and 28 software copyrights, and its main product technologies are at the leading level in the industry.

At present, the company’s efforts to open up overseas markets such as North America have achieved initial results, and it is expected to seize more international leading market shares in the future.

On March 8 this year, the company first granted 91 people to expand stock incentives 162.

70,000 shares at a grant price of 20.

93 yuan / share, the performance evaluation target is the annual income of 2019-2021, the performance growth rate is not less than 30%, 20%.

Equity incentives are conducive to binding the company’s overall interests and show confidence in future development.

Investment suggestion: We expect the company’s revenue growth in 2018 and 2019 to be 62.

3%, 28.

9%, 31.

3%, net profit growth rate was 62.

0%, 25.

0%, 29.
4%, outstanding growth; for the first time to give an overweight-A investment rating, 6-month target price of 79.

5 yuan, equivalent to 30 times dynamic price-earnings ratio in 2019.