标题：Victory Precision ManufactureBuilding up presence in machine vision
发布日期：2016-02-01 14:24:32
内容： Gaining presence in 3D machine vision takes the Company a stepcloser towards its smart factory strategy. The Company said lateJan. 28 that its subsidiary, RS Technology, will set up a JV with YaoZhengrong, a Swedish national with a Ph. D. in electronic engineeringfrom Umea University, to venture into the 3D machine vision (MV) area.Suzhou Fanmoo Vision Technology Limited Company, the joint venture,will be created with Rmb4.8mn from RS Technology and Rmb3.2mnfrom Yao, who previously worked for Ericsson and Scalado. Sitting onover 10 years of extensive experience in R&D on MV, optical inspectionfor industrial purposes and 3D precision testing, Yao holds coretechnologies required for R&D on 3D MV hardware and software. Wesee this initiative as a key component of the Company’s smart factorystrategy, and believe this will strengthen its R&D capabilities, especiallyof technologies for intelligent manufacturing system integration, andreduce its procurement expenses. 3D machine vision: The core constituent of an intelligentmanufacturing system. A smart factory normally operates with threelevels of systems, i.e. the perception layer, the equipment layer and theMES (Manufacturing Execution Systems) layer. MV systems, as part ofthe perception layer, are comprised of sources of light, cameras, lenses,image acquisition cards, image process software, industrial computers,control gears, and others. Such systems are capable of capturing itemsmeasured in micrometers and are the core constituent of an intelligentmanufacturing system. Currently, 50% of the downstream applicationsare dedicated to manufacturing of electronic products, such as adoptedon the lines of production and testing for the complete set orcomponents of consumer electronics. RS Technology needs to procureMV units for the manufacturing of its master products of automationequipment targeting the 3C Industry (computer, communication andconsumer electronics). JV could mean reduced costs and stronger capabilities ofindependent R&D on machine vision. China’s domestic market of MVcore components is still dominated by foreign players. We believe thecreation of Suzhou Fanmoo will significantly strengthen the Company’scapabilities of independent R&D on MV hardware and software. Ourchannel checks indicate that suppliers of MV systems for Apple Inc.operate at GPM/NPM of c.50%/30%, respectively. We estimate thesuccessful self-sourcing of 3D MV units at RS Technology couldsignificantly lower its procurement costs and therefore boost itsprofitability. Bullish on its notable edge via an expanded presence in intelligentmanufacturing at the perception layer of a smart factory by RSTechnology. Potential risks: Disappointing progress in the expansion of new businesses; and earningsunderperforming expectations. Earnings estimates, valuation and investment rating. We maintain our 2015-17E EPS forecast ofRmb0.21/0.62/0.98. The stock is currently trading at Rmb17.2, or 28x/17x 2016E/17E P/E, and gettingclose to the offering price of its private placement. We reiterate BUY and arrive at a target price ofRmb22 on 35x 2016E P/E vs. c.30x 2016E P/E for the 3C Industry automation names and c.40x 2016EP/E for the lithium-ion battery players (its subsidiary Suzhou Green Power produces lithium-ion batteryseparators).
发布日期：2016-02-01 14:24:32
内容： Gaining presence in 3D machine vision takes the Company a stepcloser towards its smart factory strategy. The Company said lateJan. 28 that its subsidiary, RS Technology, will set up a JV with YaoZhengrong, a Swedish national with a Ph. D. in electronic engineeringfrom Umea University, to venture into the 3D machine vision (MV) area.Suzhou Fanmoo Vision Technology Limited Company, the joint venture,will be created with Rmb4.8mn from RS Technology and Rmb3.2mnfrom Yao, who previously worked for Ericsson and Scalado. Sitting onover 10 years of extensive experience in R&D on MV, optical inspectionfor industrial purposes and 3D precision testing, Yao holds coretechnologies required for R&D on 3D MV hardware and software. Wesee this initiative as a key component of the Company’s smart factorystrategy, and believe this will strengthen its R&D capabilities, especiallyof technologies for intelligent manufacturing system integration, andreduce its procurement expenses. 3D machine vision: The core constituent of an intelligentmanufacturing system. A smart factory normally operates with threelevels of systems, i.e. the perception layer, the equipment layer and theMES (Manufacturing Execution Systems) layer. MV systems, as part ofthe perception layer, are comprised of sources of light, cameras, lenses,image acquisition cards, image process software, industrial computers,control gears, and others. Such systems are capable of capturing itemsmeasured in micrometers and are the core constituent of an intelligentmanufacturing system. Currently, 50% of the downstream applicationsare dedicated to manufacturing of electronic products, such as adoptedon the lines of production and testing for the complete set orcomponents of consumer electronics. RS Technology needs to procureMV units for the manufacturing of its master products of automationequipment targeting the 3C Industry (computer, communication andconsumer electronics). JV could mean reduced costs and stronger capabilities ofindependent R&D on machine vision. China’s domestic market of MVcore components is still dominated by foreign players. We believe thecreation of Suzhou Fanmoo will significantly strengthen the Company’scapabilities of independent R&D on MV hardware and software. Ourchannel checks indicate that suppliers of MV systems for Apple Inc.operate at GPM/NPM of c.50%/30%, respectively. We estimate thesuccessful self-sourcing of 3D MV units at RS Technology couldsignificantly lower its procurement costs and therefore boost itsprofitability. Bullish on its notable edge via an expanded presence in intelligentmanufacturing at the perception layer of a smart factory by RSTechnology. Potential risks: Disappointing progress in the expansion of new businesses; and earningsunderperforming expectations. Earnings estimates, valuation and investment rating. We maintain our 2015-17E EPS forecast ofRmb0.21/0.62/0.98. The stock is currently trading at Rmb17.2, or 28x/17x 2016E/17E P/E, and gettingclose to the offering price of its private placement. We reiterate BUY and arrive at a target price ofRmb22 on 35x 2016E P/E vs. c.30x 2016E P/E for the 3C Industry automation names and c.40x 2016EP/E for the lithium-ion battery players (its subsidiary Suzhou Green Power produces lithium-ion batteryseparators).
