\u3000\u3 Guocheng Mining Co.Ltd(000688) 200 Beijing Huafeng Test & Control Technology Co.Ltd(688200) )
Benefiting from the accelerated expansion of downstream sealing and testing plants, the company’s revenue and profit increased significantly in 2021. In 2021, the company achieved a revenue of 878 million yuan, a year-on-year increase of + 120.96%; The net profit attributable to the parent company was 470 million yuan, a year-on-year increase of + 134.93%. In 2021, the net cash flow from the company’s operating activities reached 354 million yuan, a year-on-year increase of + 155.59%, accounting for 80.78% of the net profit, reflecting the excellent income quality of the company. In 2021, the company’s test equipment shipments reached 1514 units, a year-on-year increase of + 113.54%, and the cumulative shipments reached 4500 units.
The gross profit margin increased steadily, and the net profit margin increased significantly after deducting non profits. In 2021, the company achieved a gross profit margin of 80.22%, a year-on-year increase of + 0.47pct; The net interest rate after non deduction was 49.48%, with a year-on-year increase of + 12.27pct; The net interest rate was 49.96%, with a year-on-year increase of -0.15pct, mainly due to the decrease of 62 million yuan in the profit and loss from changes in fair value compared with the same period last year. The scale effect is prominent, and the cost rate continues to decline during the period. In 2021, the company’s management expense rate, sales expense rate and R & D expense rate were 17.05%, 8.70% and 10.71% respectively, with a year-on-year increase of -3.95pct, -3.76pct and -4.17pct respectively.
In 2021q4, due to the lack of core and the delayed acceptance of customers, the revenue decreased month on month. In 2021q4, the company realized a revenue of 241 million yuan, a year-on-year increase of + 129.90% and a month on month increase of – 23.00%; 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 – 21.47%. Affected by the lack of core and the delayed acceptance of downstream customers, the company’s revenue decreased month on month in 2021q4.
The company has abundant orders on hand, and the number of goods issued has increased significantly year-on-year. As of December 31, 2021, the book value of goods issued by the company was 875761 million yuan, a year-on-year increase of + 190.58%; The book value of products in progress was 162583 million yuan, a year-on-year increase of + 162.00%. The company’s operating income is recognized after the goods delivered are accepted by the customer and meet the conditions for revenue recognition. According to the company’s gross profit margin of 80%, the revenue of about 430 million yuan is expected to be recognized in 2022.
The new sts8300 and high-power device test equipment are expected to become the growth momentum in 2022. In 2021, the company’s new product sts8300 has received many customer orders and has obtained certain installed capacity. The platform design of sts8300 further improves the integration. It is mainly for PMIC and power SOC testing, and can meet the testing requirements of FT and CP at the same time. It is expected to continue in large quantities in 2022. In addition, with the rapid development of photovoltaic, new energy vehicles, 5g, Internet of things and other fields, the market demand for high-power device test systems continues to increase, helping the revenue of high-power device test equipment continue to grow.
Profit forecast: we expect the company’s net profit attributable to the parent company in 2022, 2023 and 2024 to be RMB 612 / 821 / 1107 million respectively, corresponding to 41 / 30 / 22 times of the share price PE on March 1, maintaining the “buy” rating.
Risk warning: customer expansion is less than expected, the supply chain is in continuous shortage, and the research and development of new products is less than expected.
