Nanxing Equipment (002757) In-depth Report: Panel Furniture Machinery Steadily Increases IDC Operation Sets Off
Key points of investment: High-quality enterprises of panel furniture machinery, the layout of IDC operations is poised for development.
The company is the first domestic furniture and equipment manufacturing company to enter the A-share market. In March 2018, it acquired the only network to form a dual-main business business layout: the parent company has 248 inventions, utility models and design patents, and has a wide range of products.It mainly includes CNC series machining centers 杭州夜网 for panel furniture, computer panel saws, automatic edge banding machines, CNC drilling, automation and other series of equipment. The only network of the subsidiary has 39 software copyrights and 2 patent applications. The main business includes server hosting andInternet infrastructure integrated services such as lease, bandwidth lease, cabinet and space lease, cloud computing, network security, etc.
In the second quarter of 2018, the company will consolidate the only network division consolidated report to achieve real revenue11.
29 ppm, a 44-year increase of 44.
53%, net profit attributable to mothers1.
64 ppm, an increase of 51 in ten years.
Edge computing helps, and the only network development is entering a period of possibility.
From the perspective of market space, the global and domestic data center market sizes were USD 46.6 billion and USD 65 billion in 2017, of which medium and large-scale data centers grew rapidly.
However, after the development of the “cloud + end” industry model in the 5G and IoT era, the demand for Internet infrastructure resources at the edge interconnection will increase.Ushering in good development opportunities.
The unique network has formed a differentiated competitive advantage in the domestic IDC professional service field, leading in the layout of small and medium-sized data centers and bandwidth resources. With the help of edge computing, the unique network is entering a period of development possibility.
At the same time, the company’s traditional furniture machinery business is fully coordinated with the sole network business. Furniture machinery manufacturing can combine the big data support of the sole network to enhance the first-mover advantage in the field of intelligent manufacturing. At the same time, the sole network can use the cloud platform as the entrance to the furniture industry customersProvide exclusive services.
The short-term growth rate of the furniture manufacturing industry, and the demand for intelligent equipment drive investment in fixed assets.
The annual growth rate of the furniture manufacturing industry in 2018 is forecast to achieve 7,081 operating income.
70 ppm, a ten-year increase4.
50%, the growth rate drops by 5 every year.
70pct; realized profit increase of 425.
90 ppm, a ten-year increase4.
30%, the growth rate drops by 5 per year.
Affected by the rapid development of the custom industry, furniture companies’ demand for flexible furniture production lines for custom furniture has increased; the demand for furniture manufacturing automation has increased due to the increase in labor costs; the need for intelligent equipment has driven fixed asset investment in the furniture manufacturing industry.The asset investment quota has increased by 23% annually.
The company’s continued growth in high-end CNC equipment sales has driven performance growth. In the first three quarters of 2018, the company’s panel furniture machinery business achieved revenue6.
68 ppm, an increase of 24% per year.
With the further increase of the demand for intelligent equipment in the furniture industry, the company’s furniture machinery revenue is expected to further increase.
Upgrade the company to Buy rating.
Combined with the company’s performance report for 2018, the company’s 2018-2020 net profit is expected to be 1.
6.4 billion, 2.
3.3 billion, 3.
50,000 yuan, the corresponding EPS is 1.
25 yuan / share, 1.
77 yuan / share, 2.
32 yuan / share, calculated according to the latest closing price, the corresponding PE is 27, 19, 14 times.
The company’s panel furniture machinery business is expected to achieve steady growth. At the same time, the unique network business model fully benefits from the rise of edge computing. Future development is expected to enter a potential period, and the company is upgraded to a buy rating.
Risk warning: The growth of the downstream furniture industry is less than expected; the growth of the panel furniture machinery industry is less than expected; the data center industry is less than 南京夜网 expected; the company’s performance is less than expected; the performance of the acquired company is less than expected; the synergy between the furniture machinery business and the sole network business is less than expected.