Meiya Optoelectronics (002690): CBCT demand is still strong; the future of intraoral scanners in reserve is promising

Meiya Optoelectronics (002690): CBCT demand is still strong; the future of intraoral scanners in reserve is promising
Company status We recently exchanged with Meiya Optoelectronics at the Shanghai Dental Show and CICC’s 2019 annual strategy meeting, and updated the company’s fundamentals. The core points are as follows. Comments CBCT demand is strong, and the industry is still in a high boom.The company’s exhibition orders totaled more than 1,700 units this year, an annual growth of nearly 70%, reflecting the strong downstream demand. Looking ahead, we think: 1) The industry has growth potential.We estimate that by the end of this year, the number of CBCTs in the industry will be less than 20,000 and the penetration rate will decrease.If it is assumed that the use cycle of CBCT is 5 years, we conservatively estimate that gradually reducing the average annual sales of CBCT is expected to reach 1.5?20,000 units, and we estimate that industry sales in 2019 may be around 6,000 units, so there is still potential for 佛山桑拿网 increased growth.2) Meiya Optoelectronics’ market share is expected to continue to increase.Considering that the company’s CBCT is of excellent quality, strong brand strength, and competitive price compared to imported brands, we believe that the company’s expected expansion is expected to increase in the long run.3) There is room for improvement in gross profit margin.In the case of 1H19 CBCT, with a slight reduction in the unit price, the gross profit margin increased by 1.1ppt, mainly due to scale effects and process improvements.We believe that CBCT’s gross profit margin is expected to increase steadily in the future. Considering that CBCT’s growth rate is faster than that of color sorters, the optimization of the product structure will also increase the overall gross profit margin. The intraoral scanner (oral scanner) is still in the process of forensics, and we expect its growth prospects to be broad.The oral scan uses visible light to image the internal shape of the mouth, and it does not overlap with the oral CT machine in application.The main application of mouth scans is the restoration of teeth and orthodontics. We believe that as people’s oral health grows, there is room for growth in terminal demand.Mouth sweeping is a digital modelling of the oral cavity, which replaces the current physical modelling, which has the advantages of shortening the treatment time and improving the accuracy of the model. If a large-scale replacement of physical modelling can be realized in the future, we expect the penetration rate of the mouth sweepThe pursuit is higher than oral CT.Considering that oral scanner and CBCT share the same channels and customers, we believe that oral scanner attempts to replicate the growth path of CBCT. Color sorter is a stable cash cow business.The technology of color sorter is more biological, so the competitive advantage can be kept stable for a long time. As a leader, Meiya Optoelectronics has continued to increase its market share.In addition, the future growth of the company’s color sorter also depends on the expansion of overseas markets and non-agricultural color sorters.We consider this business to be a large and stable cash cow business. It is estimated to maintain the 2019 / 20e EPS forecast at 0.81/0.99 yuan.The current contradiction corresponds to 48/2019 / 20e P / E.1x / 39.3 times.Taking into account the final estimated conversion, and at the same time the company is currently stocking new products, it has increased growth potential, we raised our target price by 22.2% to 44.77 yuan, corresponding to the target price-earnings ratio of 2020e 45x, with a potential increase of 14.4%.Maintain “Outperform” rating. Risky new product expansion was less than expected.

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