\u3000\u3 China Vanke Co.Ltd(000002) 138 Shenzhen Sunlord Electronics Co.Ltd(002138) )
Events
Shenzhen Sunlord Electronics Co.Ltd(002138) released the annual report for 2021: the company achieved an operating revenue of 4.577 billion yuan in 2021, with a year-on-year increase of 31.66%; The net profit attributable to the parent company was 785 million yuan, a year-on-year increase of 33.33%; The net profit deducted from non parent company was 693 million yuan, with a year-on-year increase of 31.45%.
Key investment points
The sluggish demand in the mobile phone sector dragged down the gross profit margin, and the proportion of new product revenue gradually increased
According to the company’s 2021 annual report, the company achieved a revenue of 1.101 billion yuan in Q4 in 2021, a year-on-year increase of 7.73%; The net profit attributable to the parent company was 182 million yuan, a year-on-year increase of 0.14%. In terms of business, the company’s products achieved sales revenue of 1.986 billion yuan, 1.616 billion yuan, 303 million yuan and 672 million yuan respectively in the fields of signal processing, power management, automotive electronics or energy storage, ceramics and PCB. Among them, the revenue of products in the fields of automobile and energy storage and ceramics and PCB increased by 73.97% and 91.16% year-on-year, reflecting the strong profitability of the new business line. In terms of gross profit and gross profit margin, the gross profit from sales reached 1.605 billion yuan in 2021, a record high in the same period, but the gross profit margin decreased by 1.21pct year-on-year to 35.05%. The gross profit margin decreased significantly in 2021q4, which was mainly affected by weak demand in mobile phone and communication market, product price adjustment, rising raw material prices and other factors.
Continue to strengthen management capacity and further improve R & D investment
In terms of expenses, in 2021, the rates of sales, management and financial expenses of the company were 1.91%, 4.52% and 1.24% respectively, of which the sales expenses decreased by 5.76% year-on-year, and the growth rate of sales expenses was much lower than that of sales scale, indicating the initial results of the company’s marketing reform. In terms of R & D expenses, the company achieved R & D expenses of 344 million yuan in 2021, with a year-on-year increase of 41%, reflecting the company’s emphasis on basic R & D investment, research in key application fields and continuous investment in new products.
With the steady growth of traditional inductance business and the expansion of new products such as automotive electronics, the company has broad growth space
Benefiting from the development of 5g communication, the demand for single inductor in base stations, mobile terminals and communication modules has increased rapidly. As the leading enterprise of chip inductors with the world’s top three market share and the first in China, the company’s products are deeply distributed in mobile terminals and communication base stations, with a wide range of customers. The breadth and depth of cooperation with core communication enterprises at home and abroad continue to improve, and the market share of existing core customers continues to grow. The sustainable development of 5g industry will contribute steadily to the expansion and volume of the company’s communication business. In addition, the company continues to enrich the new product line with core competitiveness, and takes the lead in the layout of new energy electrification and intelligent application of automotive electronics. Automotive electronic products continue to push through the old and bring forth the new. Products such as high reliability electronic transformer, electric vehicle BMS transformer and high reliability inductor have been recognized by customers, and the product scale can be expected, The company has broad growth space for automotive electronics.
Profit forecast
It is predicted that the company’s revenue from 2022 to 2024 will be 5.863 billion yuan, 7.159 billion yuan and 8.763 billion yuan respectively, and the EPS will be 1.29, 1.62 and 1.94 yuan respectively. The corresponding PE of the current stock price will be 24, 19 and 16 times respectively, giving the “recommended” investment rating.
Risk tips
Component price fluctuation risk; The downstream demand is lower than the expected risk; The risk of intensified industry competition; Raw material price fluctuation risk.
