A：Company Basic Information
Full Name: Shengyi Electronics Co., Ltd.
Stock Code: 688183
Stock Abbreviation: Shengyi Electronics
Region: Dongguan City, Guangdong Province
Industry: Computer, Communication and Other Electronic Equipment Manufacturing
Establishment Date: August 2, 1985
Founder: Deng Chunhua
Company Website: https://www.sye.com.cn
Registered Address: No. 33, Tongzhen Road, Science and Technology Industrial Park, Dongcheng District (Tongsha), Dongguan City
Total Share Capital: As of October 18, 2024, the company's total share capital is approximately 832 million shares
Total Market Value: As of the closing on October 18, 2024, the company's total market value is approximately 12 billion yuan
Business Scope: R&D, production, and sales of various types of printed circuit boards
Company Profile: Shengyi Electronics Co., Ltd., established in 1985 and headquartered in Dongguan City, Guangdong Province, is a national high-tech enterprise specializing in the production of high-precision, high-density, and high-quality printed circuit boards. The company has two major manufacturing bases in Dongcheng, Dongguan, and Ji'an, Jiangxi. Relying on mature operations management and a sound quality system, Shengyi Electronics has become a pioneer in the PCB field with a quality culture involving all employees, a team of high-end talents, strong process technology R&D capabilities, and a customer-oriented service spirit. Shengyi Electronics provides one-stop printed circuit board solutions for customers, with products widely used in communication equipment, network equipment, computer/server, consumer electronics, industrial control, medical, automotive, aerospace, and other fields. The company has established long-term and stable strategic cooperation relationships with many top companies around the world.
B：Value Investment Analysis
Key Financial Indicators (Latest Data for 2024):
In the first half of 2024, the company achieved a total operating income of 3.634 billion yuan, a year-on-year increase of 24.64%;
Achieved a net profit attributable to shareholders of listed company of 439 million yuan, a year-on-year increase of 4.27%;
Research and development investment accounted for 4.28% of operating income, a year-on-year increase of 16.1%, with R&D personnel accounting for nearly 50% of the total number of employees.
Company Investment Value:
Shengyi Electronics, as a leading enterprise in the domestic printed circuit board industry, demonstrates its investment value in the following aspects:
Technology Innovation: The company continues to increase R&D investment, maintaining a technological edge and driving innovation in products and solutions.
Market Position: Shengyi Electronics holds a significant position in the printed circuit board market, with a leading market share in the country according to the company's announcements.
Business Diversification: The company not only has a deep accumulation in the field of printed circuit boards but also actively expands into innovative businesses, such as high-frequency high-speed boards, HDI substrates, and packaging substrates, enhancing the company's profitability and risk resistance.
Stable Equity Structure: The company has a stable equity structure, providing a solid foundation for the company's long-term development.
Company Growth Potential:
Shengyi Electronics' growth potential mainly comes from the following aspects:
Rapid Development of the Printed Circuit Board Market: With the global demand for printed circuit boards increasing, Shengyi Electronics is expected to achieve rapid business growth based on its technological accumulation and market advantages in the printed circuit board field.
Expansion of Innovative Businesses: The company's innovative businesses, such as high-frequency high-speed boards and packaging substrates, are in a rapid development stage and are expected to become new growth points for the company.
International Strategy: The company continues to promote its international strategy, with overseas market revenue accounting for an increasing proportion year by year. Despite the uncertainty of the international political environment, the company's international layout helps to diversify risks and achieve a balanced development of the global market.
Industry Support Policies:
The printed circuit board industry, where Shengyi Electronics is located, is strongly supported by national policies. From the "Twelfth Five-Year Plan" to the "Fourteenth Five-Year Plan", the support policies for the printed circuit board industry have evolved from abstract to concrete, and from simple to diversified development trajectories. Especially during the "Fourteenth Five-Year Plan" period, the development requirements for high-end manufacturing industries have been further improved, providing policy support for industry development.
International Policy Risks:
The international policy risks faced by Shengyi Electronics mainly come from the uncertainty of the international trade environment, especially the sanctions imposed by the United States on Chinese high-tech companies. The company needs to reduce the impact of international policy risks on its business through diversified market strategies, strengthening independent research and development capabilities, and expanding international cooperation.
A.Top's Investment Review:
Shengyi Electronics, as a leading enterprise in the domestic printed circuit board industry, demonstrates good investment value with its technological innovation, market position, business diversification, and other advantages. The company continues to increase R&D investment, promote innovation in products and solutions, and actively expand into innovative businesses and international markets, enhancing the company's profitability and risk resistance. Although facing the challenge of international policy risks, the company is expected to achieve continuous and stable development through robust business strategies and international layout. Considering the company's financial performance, growth potential, and industry development trends, Shengyi Electronics is a target worth investing in for the long term.