\u3000\u3 Guocheng Mining Co.Ltd(000688) 200 Beijing Huafeng Test & Control Technology Co.Ltd(688200) )
China’s test equipment leader, with excellent performance in 2021, maintained the “buy” rating
On February 25, 2022, the company issued its annual report for 2021. The company achieved a revenue of 878 million yuan in 2021, a year-on-year increase of + 120.96%; The net profit attributable to the parent company was 439 million yuan, a year-on-year increase of + 120.28%; Deduct the non net profit of 435 million yuan, a year-on-year increase of + 193.79%; The gross profit margin was 80.22%, with a year-on-year increase of + 0.47pcts. In 2021q4, the company achieved a revenue of 241 million yuan in a single quarter, a year-on-year increase of + 129.90% and a month on month increase of – 22.93%; The net profit attributable to the parent company was 128 million yuan, with a year-on-year increase of + 104.31% and a month on month increase of – 21.62%; Deduct non net profit of RMB 115 million, a year-on-year increase of + 248.71% and a month on month decrease of – 34.59%. The outstanding performance in the whole year was mainly due to the strong demand of the industry and the booming production and marketing, which promoted the profitability of the company. At the same time, the product structure continued to upgrade and improved the competitiveness. The decrease in the net profit attributable to the parent company in Q4 was mainly due to seasonal fluctuations and the lag of downstream customers in the delivery and acceptance progress of the company’s equipment. In 2021, the company’s contract liabilities were 129 million yuan, a year-on-year increase of + 221%, indicating that the company has sufficient orders on hand. The prosperity of semiconductor industry is relatively high. Downstream manufacturers actively expand production to stimulate the demand for equipment, superimpose the urgent demand for domestic substitutes, and the company has sufficient growth momentum. We raised the profit forecast for 20222023 and added the forecast for 2024. The net profit attributable to parent company in 20222024 is expected to be 608 (+ 0.27) / 824 (+ 0.53) / 1058 million yuan, and EPS is expected to be 991 (+ 0.44) / 13.44 (+ 0.87) / 17.25 yuan, The current share price corresponding to PE is 42.3 / 31.2 / 24.3 times, maintaining the “buy” rating.
Attach importance to R & D, expand production capacity and have a promising prospect
The company continues to increase R & D investment, jointly build joint laboratories and set up post doctoral research workstations. In 2021, the company’s R & D expenses were 94.04 million yuan, a year-on-year increase of + 59%, accounting for 11% of its revenue. In 2021, the company applied for 47 patents, 19 of which were invention patents. In July 2021, the “Tianjin University Beijing Huafeng Test & Control Technology Co.Ltd(688200) integrated circuit equipment technology joint research center” jointly established by the company and Tianjin University was officially unveiled, providing a better talent training channel for enterprises through the mode of production, study and research. In December 2021, the company set up a “post doctoral research workstation”, which will promote more top talents to join the company and improve the company’s scientific research ability. In January 2022, the company’s Beijing R & D center was officially opened to meet the needs of the company’s R & D scale expansion. The company’s production capacity further expanded. In September 2021, Tianjin production base was officially put into use, and the company’s production capacity increased significantly. The company’s sales capacity was further enhanced. On the basis of stabilizing existing customers, a wholly-owned company in Southeast Asia was established in 2021 to increase its product promotion capacity in Southeast Asia and international markets. By the end of 2021, the installed capacity of the company’s test system has reached 4500.
Risk tip: capacity expansion is less than expected and downstream demand development is less than expected.
