\u3000\u3 Guocheng Mining Co.Ltd(000688) 200 Beijing Huafeng Test & Control Technology Co.Ltd(688200) )
Event overview
The company issued an annual report, realizing an operating revenue of 878 million yuan in 2021, with a year-on-year increase of 120.96%; The net profit attributable to the owners of the parent company was 439 million yuan, an increase of 120.28% year-on-year; The net profit attributable to the owner of the parent company after deducting non recurring profits and losses was 435 million yuan, with a year-on-year increase of 193.79%.
Analysis and judgment:
The booming production and marketing promoted the improvement of profits, and the demand for downstream testing machines was strong. The company’s performance in 2021 was in line with expectations and close to the median value of the forecast. The high growth of the company’s performance is mainly due to the continuous improvement of the semiconductor industry and the accelerated expansion of semiconductor downstream packaging and testing plants. The company’s production and marketing structure has been prosperous, and the company’s competitiveness has been continuously improved. Quarter by quarter, Q4 achieved an operating revenue of 241 million yuan, a year-on-year increase of 129.90% and a month on month decrease of 23.00%; The net profit attributable to shareholders of listed companies was 128 million yuan, a year-on-year increase of 104.31% and a month on month decrease of 21.47%; The net profit attributable to the owners of the parent company after deducting non recurring profits and losses was 115 million yuan, a year-on-year increase of 248.71% and a month on month decrease of 34.66%. The net profit margin was 49.96% year-on-year, unchanged from that of 2021.
Continue to increase R & D investment and expand production capacity
According to semi data, the total sales of global semiconductor manufacturing equipment will exceed US $100 billion for the first time in 2021, reaching US $103 billion, an increase of 44.7% over US $71 billion in 2020, and is expected to increase to US $114 billion this year, a year-on-year increase of 11%. It is expected that the high outlook of the semiconductor equipment market will remain. The company continues to increase R & D investment, continuously introduces excellent R & D personnel and arranges forward-looking innovative technologies in advance. In 2021, the company continued to increase R & D investment, with an annual R & D cost of 94.04 million yuan, a year-on-year increase of 59.03%, accounting for 10.71% of revenue. At present, the company’s main products are sts8200 and sts8300. By 2021, the installed capacity of the test system developed and manufactured by the company is 4500. In 2018, the company launched sts8300. Compared with sts8200, the platform design of sts8300 further improves the integration. It is mainly for PMIC and power SOC testing, and can meet the testing needs of FT and CP at the same time. At present, the new products have received orders from many high-quality customers and have obtained a certain installed capacity. In terms of third-generation compound semiconductors, the company began to layout in the field of gallium nitride in 2016, and cooperated with design and production enterprises outside China to provide mature gallium nitride chip test solutions. The company expanded its production capacity in Tianjin base. On September 8, 2021, the company held the entry ceremony of “Tianjin integrated circuit test equipment industrialization base”, marking the formal operation of Tianjin production base and the expansion of the company’s production capacity, so as to further ensure the company’s equipment supply capacity and lay a foundation for the company’s future development.
Investment advice
The company has always focused on the field of semiconductor automatic test system, realized the import substitution of analog and mixed signal semiconductor automatic test system with self-developed products, and continuously expanded its coverage in the field of power semiconductor test such as gallium nitride, silicon carbide and IGBT. We adjusted the profit forecast from 2022 to 2023. The company’s forecast of revenue of 1.302 billion yuan and 1.693 billion yuan from 2022 to 2023 was adjusted to 1.311 billion yuan and 1.705 billion yuan, and the EPS of 2022 to 2023 was 10.5 billion yuan The forecasts of 82 yuan and 14.27 yuan are adjusted to 10.22 yuan and 14.24 yuan. It is predicted that the revenue and EPS in 2024 will be 2.186 billion yuan and 18.28 yuan respectively, corresponding to the closing price of 419.69 yuan / share on February 25, 2022. The PE is 41 times, 29 times and 23 times respectively, which has not been rated yet.
Risk tips
The development of semiconductor industry is less than expected; The progress of product R & D / order acquisition of the company is less than expected.
