Fujita (835640)
Company event: the company released the performance express of 2021: in 2021, the company is expected to achieve a revenue of 603 million yuan, a year-on-year increase of 11.43%; The net profit attributable to the parent company was 102 million yuan, a year-on-year increase of 48.87%.
After 20 years of deep cultivation in the field of RF connectors, the net profit attributable to the parent company increased by 48.87% year-on-year in 2021: at present, the company’s main business is the R & D, production and sales of RF coaxial connectors, RF coaxial cable components, RF cables and other products. The products are widely used in the communication and defense markets, and the main customers include Huawei RFs and other global well-known communication equipment manufacturers, as well as enterprises or scientific research institutes subordinate to central enterprise groups such as China Aerospace Hi-Tech Holding Group Co.Ltd(000901) group and China Electronics Technology Group. According to the company’s 2021 performance express, the company’s revenue and profit scale have increased steadily. In terms of a single quarter, the revenue of 2021q4 company was 151 million yuan, an increase of 0.90% year-on-year and a decrease of – 8.08% month on month; The net profit attributable to the parent company was 29 million yuan, with a year-on-year increase of 37.42% and a month on month increase of 24.74%. The main reasons for the increase of the company’s revenue scale and profit scale are as follows: 1) the company has deeply cultivated the defense market and continuously expanded the demand in the field of Chinese civil products and the international market; 2) The company continues to increase R & D investment, continuously optimize product structure and improve production efficiency. The expansion of production and marketing scale and the change of product structure lead to the increase of gross profit, resulting in the synchronous and stable improvement of the company’s revenue scale and economic benefits. Although the revenue of 2021q4 company decreased slightly month on month, the net profit attributable to the parent company increased by 24.74% month on month. The annual revenue and net profit attributable to the parent company in 2021 reached 603267200 yuan (a year-on-year increase of 11.43%) and 101946500 yuan (a year-on-year increase of 48.87%) respectively. On the whole, the company has made steady progress in performance and good operating conditions.
Years of technology accumulation + continuous R & D investment, aerospace, defense and civil products go hand in hand, and 5g construction and civil satellites have obvious advantages: the company’s technology R & D level is leading in the industry, the system supporting ability is strong, and it has certain advantages in cost control and delivery ability. After years of unremitting efforts, the company has mastered the core technology of RF coaxial connector design and manufacturing, and accumulated rich experience in the production technology of electrical connectors, especially micro connectors. The main core technologies rank at the advanced level of China, and some have reached the international advanced level. The R & D investment of the company is relatively high in recent years, mainly in the following three aspects: 1) aerospace field: responding to the needs and new applications in aerospace field; 2) Defense field: due to the special artificial environment and technical requirements, the company has a high investment in new product R & D and new structure verification; 3) Civil products: mainly invested in 5g, commercial satellite solutions, etc. In the field of 5g construction, the company mainly seeks to make a breakthrough in 5g general supporting facilities, provide customers with 5g in-machine fast connection scheme, and export similar products to Europe or other countries. Although the slowdown in the development of 5g market outside China has led to the decline in the performance of civil 5g supporting facilities of the company in recent two years, according to the company’s announcement, the company expects that the business development in this field in 2022 will be greatly improved compared with that in 2021. In addition, through years of accumulation in the field of aerospace application and technology accumulation, the company also shows obvious advantages in the field of civil satellite communication.
The intelligent and digital industrial base is about to be completed, and the production capacity of defense products is expected to make a significant breakthrough: according to the company’s announcement, at present, the company’s defense production line is in the state of full production, the capacity utilization rate of defense production line basically exceeds 100%, and the production line of civil products is basically balanced. In terms of capacity improvement, on the one hand, the company solves the problem of insufficient capacity by building a new industrial base; On the other hand, we set up branches in Suzhou and Luoyang to coordinate the supporting production of products, reduce costs and improve operation efficiency through regional advantages. According to the announcement of the company, the funds raised and invested by the company are mainly used for Fujida industrial base project (phase II). At present, the completion of the main works is about 80%. It is expected that the capital construction project can be completed in May 2022. With the industrial base put into use, the company’s production capacity is expected to increase significantly. At the same time, the growth of the company’s output will not have a significant impact on the market price, and the market price of RF connector will be stable and orderly.
Investment suggestion: as a model of high-quality development of China’s RF connector industry, the company has significant advantages in technical reserves, R & D investment and customer base. At present, the company is marching into 5g construction, civil satellite communication and other fields. With the Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) base put into use, the company’s production capacity is also expected to increase significantly. At present, the latest market value of the company is 3.5 billion yuan and PE (TTM) is 34x. It is recommended to pay attention.
Risk tip: the risk of demand change in downstream industries and the risk of technology upgrading
