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World Games Circuit (603920): The longer the fragrance, the more dividends

The industry broke out.

  We predict that the CAGR of pure electric vehicle sales of overseas car companies in 2020-2022 and 2023-2025 will be 64 respectively.

9%, 33.

3%, it is expected that overseas auto companies will sell 12.84 million pure electric vehicles in 20205, pushing new energy vehicles into a new round of explosion.

  We judge that the overseas pure electric vehicle PCB market growth rates will be 75% and 78% respectively in 2020-2022.

6% and 43.

5%, 2025 pure electric vehicle PCB market size or over 50 billion US dollars, driving the automotive PCB growth rate 4 times the growth rate of the PCB industry, becoming a replacement for the PCB industry growth rate.

The card is accurate.

  The company launched the research and development of thick copper, automotive radar board, server, multiple materials applications, 5G optical module supporting PCB, flexible board, flexible and rigid board, aluminum substrate, and bending-installable Semi-Flex board manufacturing technology. Company productsThe more complete lines are gradually becoming high-end.

  The company has broken through first-line customers such as Jabil, Flextronics, Mitsubishi, and Tesla, and has broken through Hyundai Mobis, Panasonic Motors, Yazaki, and Apollo. We judge that the company’s existing capabilities can block most of the needs of mainstream overseas new energy vehicle customers.

Sufficient capacity.

  After the company went public in 2017, the company started to expand the new capacity of 2 million square meters. The first phase of the project to raise 1 million square meters of the project is in normal progress. The second phase of the 1 million square meter project will start production in May 2020. The full release 都市夜网 in 2021 is a high probability event.

  The 2019 Interim Report announced the acquisition of Shimao Electronics to acquire 55 acres of land adjacent to the company, with a planned production capacity of 2 to 3 million square meters. The project has begun construction. It is expected that the World Trade Project will start production in early 2022 and seamlessly connect with existing projects.

Investment Advice.

  We maintain our 2019-2021 net profit forecast unchanged, corresponding to EPS for 2019-2021 of 0.

78, 1.

1 and 1.

54 yuan, corresponding to 31 PE for 2019-2021.

3, 22.

2 and 15.

8 times.

We think that the company will have a high probability of 21 in 2022-2024.

With a compound growth rate of 8%, the purchase level is still given, and the target price is raised to 33 yuan.

  Risk warning: Macroeconomic fluctuations exceed expected risks; upstream raw price rise risks.