\u3000\u3000 Jiangsu Gian Technology Co.Ltd(300709) (300709)
Event: the company predicted that the net profit attributable to the parent company in 2021 was 180 million yuan ~ 210 million yuan, with a year-on-year increase of 26.89% ~ 48.04%; Among them, the provision for goodwill impairment of Andersen is about 70-90 million yuan. The net profit deducted from non parent company in 2021 is expected to be 68 million yuan to 98 million yuan, a year-on-year decrease of 15.21% ~ 41.17%. After calculation, it is estimated that the net profit attributable to the parent company of 21q4 is 54 million yuan ~ 84 million yuan, with a year-on-year increase of – 2% ~ 53%. The high increase in net profit attributable to the parent company in 2021 is mainly due to the growth of orders from important large customers and the development of folding screen mobile phone market, and the gradual expansion of the company’s business scale; At the same time, at the end of March 2021, the company expects that the revenue in 2021 will increase significantly year-on-year. The company expects that the total interest expense of convertible bonds and equity incentive expense in 2021 will increase by about 35 million yuan compared with the same period; R & D investment increased by about 18% year-on-year.
Multi brand folding screen is ready to go, the superposition price is falling, and the heat of folding screen is rising again. (1) In January 2022, glory launched its first folding screen flagship machine magicv. The hinge design in the form of water droplets is adopted. On the premise of ensuring performance and large screen experience, the thickness of the fuselage in the unfolded state is 6.7mm (excluding the thickness of the screen frame). Light creases ensure that the screen can still maintain a long life after opening and closing for many times. (2) Samsung Huawei leads the trend, and new models emerge one after another. Samsung and Huawei are one of the first mainstream brands to lead the boom of folding screen: Samsung flip, fold and Huawei Matex series have continued to produce new products since November 19. The share of 21q3 Samsung folding screen mobile phones is as high as 93%. (3) Looking forward to the progress of multi brand layout, folding screen mobile phones will be more prosperous and ecological! The first folding mobile phones of Xiaomi (mixfold) and oppo (findn) were released in 2021. At present, the selling price of folding screen terminals is mostly reduced to less than 10000 yuan, and the sales volume is expected to continue to exceed expectations in 2022.
MIM technology accelerated its entry into the wearable field, and the business boundary expanded significantly. Jiangsu Gian Technology Co.Ltd(300709) in the early days, it mainly processed the watch case and bottom case for Fitbit, a watch bracelet manufacturer. At present, terminal giants such as apple, Samsung, Huawei and Xiaomi have carried out substantial innovation and iteration on smart watch products. At the same time, AR / VR equipment tends to be lightweight, and the complexity of internal structure has also been significantly improved. MIM process is suitable for manufacturing metal parts with complex shape, high precision requirements and relatively small size, In the trend of consumer electronics industry, the processing advantage is becoming more and more prominent. We believe that Jiangsu Gian Technology Co.Ltd(300709) as a leading manufacturer of MIM process, is expected to deeply benefit from the upgrading dividend of wearable devices.
Closely following the demand of 5g era, we have established two related business departments of transmission and heat dissipation to build a precision manufacturing platform enterprise. Since 2018, the company has successively arranged the transmission structure and heat dissipation business. In 2019, the company officially established two relevant business departments, and the heat dissipation scheme of 0.3/0.25um copper / stainless steel has made a smooth breakthrough. We expect that Jiangsu Gian Technology Co.Ltd(300709) as a precision manufacturing platform enterprise will take shape as the result of the continuous layout of these two new businesses.
The acquisition of 100% of the company’s equity and the development of Changzhou’s precision components will eventually enhance the company’s overall value-added business in the field of automotive electronics. The company plans to acquire Changzhou Ruidian precision for RMB 225 million. Ruidian precision is mainly engaged in the R & D, design, production and manufacturing of precision plastic parts and components, and provides customers with precision plastic solutions. Its products cover the application fields of automotive interior, sports machine components, consumer electronics, medical devices and so on, The acquisition marks the further penetration of Jiangsu Gian Technology Co.Ltd(300709) in the field of automotive electronics and medical devices, give full play to the synergy of MIM business, precision plastic business, transmission business and heat dissipation business in the overall components, improve the added value of the company’s products and enhance the company’s competitiveness.
Profit forecast and investment suggestions: we expect the company to achieve a revenue growth rate of 47.2% / 30.3% / 30% from 2021 to 2023, corresponding to a revenue of 2.302/3.00/3.9 billion yuan from 2021 to 2023. It is estimated that the growth rate of the company’s net profit attributable to the parent company from 2021 to 2023 will be 45.1% / 32.3% / 34.5% respectively, corresponding to the net profit attributable to the parent company of RMB 206 / 272 / 366 million from 2021 to 2023. At present, the PE corresponding to the stock price is 36.2/27.3/20.3x, maintaining the “buy” rating.
Risk tip: the downstream demand of the industry does not meet the expectation, and the process promotion progress does not meet the expectation.
