Meiya Optoelectronics: the advantages of opto-mechatronics, expanding the field of specialist medical

Meiya Optoelectronics' traditional color sorting machine has maintained steady growth. X-testing equipment is expected to enter the field of security and logistics. The domestic import space for oral CT is huge. It is in the midst of an industry outbreak. In 2015, the sales volume exceeded 100%. The company wants to cut into other specialist medical services. field. Meiya Optoelectronics holds over 1.4 billion in cash and has the ability to expand. After the previous adjustments, we believe that the stock price has reached the safe range and given a strong recommendation rating.

The optical and mechatronics technology guarantees the core competitiveness, and the color sorter export business has grown rapidly. The company has obvious advantages in optical and mechatronics technology, and has three major businesses: various color sorting machines, X-ray testing equipment and oral CT imaging equipment. Meiya is the country's largest producer of color sorters, accounting for 30% of the domestic market share. In the future, the company intends to expand into the international market. In 2014, the company's exports accounted for 19%, and the future target is 50%.

X-ray inspection machines are expected to enter the security field. The company's X-ray inspection machine is mainly used in tire manufacturing, food processing, footwear and apparel manufacturing industries. At present, it is actively developing X-ray inspection machines for security inspection and logistics inspection. It is expected to obtain the permission of the Ministry of Public Security in the first half of 2016 and enter this field.

Oral CT breaks the foreign monopoly, the market demand exceeds 10 billion, and the medical field is vigorously deployed. The introduction of oral medical CBCT has broken the long-term dependence on imported high-end medical imaging equipment. The performance is close to the international advanced level, and the cost performance advantage is obvious. The market demand for this equipment will be about 12 billion yuan in the next three to five years. Meiya Optoelectronics takes oral CT products as a starting point, gradually enters other specialist medical fields, and extends the medical industry chain. In the future, it will open up the specialized imaging equipment market for orthopedics, otolaryngology, thoracic surgery, spine, etc., and cut into dental implants, dental consumables, and medical care. Training and other medical services, to achieve full coverage of the medical multi-disciplinary industry chain.

The three major businesses of the future will go hand in hand. In 2014, the color selection business still accounted for more than 80% of the main business, X-ray foreign object detectors accounted for 6%, medical CT business accounted for 7%, and the company will increase investment in X-ray inspection and medical fields in the future. We will strive to achieve a revenue structure of 3:3:4, that is, 30% of the color sorter and X-ray detector business, and 40% of medical equipment. The medical testing field is the key development direction in the future, and related technologies have been well reserved. It is expected to break out in 2016 and 2017.

The “strongly recommended-A” rating was given for the first time. In 2016, the domestic demand for color sorters is expected to be stable, and exports will grow rapidly. The oral CT and X-ray detectors will be in volume. The EPS for 2015, 2016 and 2017 is forecast to be 0.46, 0.59 and 0.81 respectively, and the dynamic PE for 2016 and 2017 is 43, 32 times. Meiya Optoelectronics is the first stock of high-end medical equipment, which is scarce and should enjoy a valuation premium. It is recommended to buy back.

Risk factors: employees' shareholdings have been reduced, and the medical field such as oral CT has not advanced as expected.