As the capital market returns to calm, how will the first 3D printing stock of the Sci-tech Innovation Board develop?

The 3D Printing industry has gone through more than 30 years of development, and has been widely used in many cutting-edge technology fields such as aerospace, automobile industry, shipbuilding, energy and power, medical and health, and it is also an emerging industry that China focuses on supporting and developing. As the first stock of 3D Printing on the Science and Technology Innovation Board, Bright (688333), once listed, has been sought after by many investors in the cutting-edge technology field. But when the capital market returns to calmness, it will be a test of the “hard power” of the enterprise: can technical strength be transformed into performance growth? Can it reduce the integrator business of foreign manufacturers’ equipment sales and implementation? Can China’s large aircraft and launch vehicle development projects become the starting point for performance explosions?

Bright is a high-tech enterprise focusing on industrial metal additive manufacturing. Its business covers the entire industrial chain of the 3D printing industry. After years of R&D investment and development, Bright has independently developed more than ten models Additive manufacturing equipment has been applied in more than 50 units, and some of the equipment has been successfully exported to developed countries such as Germany:

S310 model equipment has passed Airbus certification and has become the main equipment of Airbus A330 aircraft type additive manufacturing project; S500 model equipment is the first in the world Realize one-way 1500mm-level large-size additive manufacturing, filling the domestic gap; S600 model equipment breaks through key technologies such as four-beam linkage scanning and splicing, and realizes three-way 600mm large-size additive manufacturing. Large-scale SLM equipment such as S500 and S600 solves the bottleneck problem in the production and manufacture of large-scale aerospace precision and complex components in my country. The basis for obtaining the above orders is that Blite’s technical parameters have reached the level of similar products of the world’s giant German EOS company. EOS is a global metal 3D printing giant. According to Wohlers Report 2018, EOS sold a total of 461 metal additive manufacturing equipment in 2017. In contrast, Blite sold 33 units in 2018, and its technology has caught up with the world’s giants in the industry, and its market expansion has just begun. It is reported that the sales of Blite’s self-developed metal additive manufacturing equipment achieved a leap from 43.58 million to 72.48 million from 2016 to 2018, reaching a 66% increase in revenue.

In terms of metal 3D printing customized product services, Bright has more than 90 sets of various metal additive manufacturing equipment, and its 3D printing parts products are installed in batches or support the development of a number of national key model projects, involving military and civilian use such as C919. Aircraft, advanced fighters, unmanned aerial vehicles, high thrust ratio aero engines, new missiles, space stations and satellites, etc. 3D printing customized products and services are also the main force of Bright’s current revenue. In 2018, the module’s revenue was 122.45 million yuan, accounting for 42.2% of Bright’s total revenue. The ability to serve so many major projects is based on Blite’s titanium alloy spherical powder R&D production line. Based on traditional titanium alloys, aluminum alloys and other materials, Blite has successfully developed a new type of titanium alloy powder TiAM1 and aluminum alloy powder AlAM1 for additive manufacturing that takes into account “strength, plasticity, and toughness”. The printed parts of this material have been successfully applied to a certain model of advanced aircraft in my country, and won the “First Prize of National Defense Science and Technology Progress Award.” The leadership of multiple technological achievements is inseparable from Blite’s high-intensity R&D investment. Bright’s R&D investment in 2018 was 25.61 million yuan, accounting for 8.79% of the company’s revenue. Continuous and high R&D investment will provide Blite with strong technical support in the future. On the eve of the outbreak of domestic aerospace, Blite’s journey to climb the 3D printing industry chain was still difficult. The business of acting as an agent for the sales of rival EOS products best reflects the difficulty of Blite in establishing brand recognition and market development. In 2018, Bright’s agent sales of equipment and accessories module business revenue was 80.15 million yuan, accounting for 27.64% of the total annual revenue, second only to the 3D printing customized product business. In the past three years, Bright’s agency equipment sales business has also been the company’s second largest source of revenue. The reason for acting as an agent for the products of rival EOS is that the EOS brand is more powerful, and customers tend to purchase EOS equipment. Blite can provide localized technical support to obtain income; in addition, because EOS equipment is relatively expensive, some of them are planned to be batched Due to cost considerations, customers of chemical applications will partially choose more cost-effective Blite equipment, so a tie-in sale can be formed.

The dominant position of strong competitors is actually not strong in the growing blue ocean market. After 30 years of accumulation, the additive manufacturing industry has just entered an “explosive” period. Statistics from Wohlers Associates, Inc. show that the global additive manufacturing output value (including products and services) has increased from US$2.28 billion in 2012 to US$7.336 billion in 2017, and it is expected that the global additive manufacturing industry will remain at Period of rapid growth. According to IDC’s forecast, the global additive manufacturing output value will reach 28.9 billion U.S. dollars in 2020. According to statistics from the China Additive Manufacturing Industry Alliance, from 2015 to 2017, the average annual growth rate of my country’s additive manufacturing industry exceeded 30%. In 2017, the scale of my country’s additive manufacturing industry has exceeded 10 billion yuan. As an important part of the 3D printing industry, metal 3D printing is also showing a strong growth momentum. Deloitte’s “2019 Technology, Media and Telecom Industry Forecast” report shows that the global 3D printing market is shifting from plastic printing to metal printing. It can be supported by data from Wohlers Associates, Inc. that the global sales of metal additive manufacturing equipment in 2017 was approximately 1,768 units, an increase of nearly 80% year-on-year. As the metal 3D printing equipment market expands, it will also face the problems of a small number of metal additive manufacturing exclusive materials on the market, insufficient supply, and lack of high-quality, defect-free metal powders. Blite, which has a titanium alloy powder R&D production line and a variety of special materials for additive manufacturing, has achieved nearly three-fold growth in its 3D printing raw material business revenue from 2016 to 2018. This is also expected to become Blite’s business module. New support point. With the continuous expansion of the global and domestic metal 3D printing market, Blite will have a broader space to “exercise” and catch up with advanced companies in the industry, which stems from the explosion of China’s aerospace industry. Bright’s products are also mostly used in key projects in the national aerospace field. Taking 2018 as an example, Blite’s aerospace revenue accounted for 62.21% of its total revenue, and its top five customers all came from the aerospace industry.

Military and civilian aircraft, the core sector in the aerospace industry, are expected to become fertile ground for the development of metal 3D printing. From the perspective of military aircraft, according to the “world air force 2018” report statistics, there is a considerable gap in aviation equipment between China and the United States. In terms of quantity alone, the number of military aircraft in my country is 3,036, while the number of aircraft in the US military Up to 13,407 planes. There is huge room for improvement in the types and numbers of aircraft in the upgrading and upgrading of our military aircraft. The civil aircraft market also has huge potential. According to the forecast of COMAC, China’s aviation market will be worth about US$1.4 trillion in the next two decades. Considering that China’s aviation industry is stepping up to catch up with the pace of developed countries, the demand for metal 3D printing in aerospace will also increase, and Blite can benefit from it. The funds raised from this listing are also used to further expand the metal 3D printing capacity to meet the growing market demand. Of the 700 million yuan to be raised in the listing, 600 million will be used in the construction of metal additive manufacturing smart factories. The heavy volume of downstream applications can often promote technological changes in the upstream industrial chain and changes in the industrial structure. This is the basic experience of China’s manufacturing industry as the “world factory”. Although the high-end manufacturing service providers represented by BLT have caught up with the international advanced giants in terms of technical indicators, there is still a long way to go in market development and international brand establishment. The outbreak of China’s aerospace industry’s demand for customized 3D printing services, combined with the accumulation of metal additive technology accumulated by Bright for many years, is expected to spawn a new world giant in the international 3D printing field.