Sanan Optoelectronics Co.Ltd(600703) (600703)
The financial report of San'an integration in the first three quarters of 2021 reflects that the technology leading heavy asset technology manufacturing enterprise will obtain strong profit elasticity after the realization of scale effect. With the high volume of revenue for several consecutive years, compound performance is expected to achieve more than expected growth.
The performance elasticity of leading compound manufacturing enterprises is expected to exceed expectations. The company disclosed San'an integrated statement. From 2021q1 to Q3, the operating revenue of San'an integration is RMB 1.669 billion, the net profit is RMB 396 million, the gross profit margin is 36%, the net profit margin is 24%, and the operating performance is better than expected. From 2019 to 2021, the revenue of San'an integration doubled for three consecutive years, and the gross profit margin in the first two years was negative. In 2021, it crossed the inflection point to achieve excellent gross profit margin, and the operating performance began to release. With product iteration and production line volume, the integration sector has great performance potential.
Sanan Optoelectronics Co.Ltd(600703) recently released China's first filter independent bonding chip quad. The first mass-produced small-size Band1 + band3 Quad using tc-saw process indicates that the company is at the forefront of the filter industry. The company's filter has rapidly climbed production in Quanzhou, achieved an order of magnitude breakthrough in production capacity within the year, and its revenue will be large-scale next year.
Sanan Optoelectronics Co.Ltd(600703) is the only platform enterprise integrating four plates and the layout of the whole industrial chain. According to the logic, we deduce that the company's integrated business is iterative in large quantities, which is expected to achieve sustained growth. From 2020 to 2021, the company's Gan benefited from 5g volume, GaAs and filter benefited from significant volume of RF localization from 2021 to 2022, and SiC benefited from significant volume of new energy vehicles from 2022 to 2023. The corresponding market space of the four plates is huge. The company has strong competitive advantages and will gradually build a compound platform leader.
The company's LED sector ushered in the miniled upgrade, and the compound sector expanded to four sectors such as microwave integration, power electronics, filter and optical communication, forming five vertical integration strategic sectors. The company's target market space is rapidly expanded from the field of LED chips, opening the ceiling of growth, and the future can be expected. The company has strong competitiveness in various fields, the product life cycle is connected with each other, the operating statements are gradually improved, ushering in the inflection point of asset turnover, and the income and profit margin are expected to achieve a "double-click" of rapid growth.
Sanan Optoelectronics Co.Ltd(600703) three inflection points of one body, two wings and broad market space. The company has made rapid progress in semiconductor base station PA, mobile phone PA, filter, optical chip and SiC. The feedback from major downstream customers is high-quality, the five science and technology trees are lit up, and the market space is broad. The downstream miniled TV continues to be in large volume, and it products are gradually implemented. It is the world's top customer and core supplier. We expect the net profit attributable to the parent company to be RMB 1.90/33.0/4.11 billion in 2021 / 2022 / 2023, maintaining the "buy" rating.
Risk tip: the demand of LED industry is less than expected, and the progress of new products is not as expected
