\u3000\u3 Guocheng Mining Co.Ltd(000688) 665 Cubic Sensor And Instrument Co.Ltd(688665) )
Event: the company released the performance express of 2021, and achieved an operating revenue of 548 million yuan in 2021, with a year-on-year increase of 77.98%; The net profit attributable to the parent company was 180 million yuan, a year-on-year increase of 113.33%; The net profit deducted from non parent company was 174 million yuan, with a year-on-year increase of 114.89%.
Our comments are as follows:
Adhere to the “1 + 3” development strategy, steadily promote the layout of various fields, increase R & D investment, improve the self-production rate of parts, reduce costs and increase efficiency
In 2021, the company achieved rapid growth in revenue and net profit. In a single quarter, 21q4 achieved revenue of 169 million yuan, a year-on-year increase of 31.79% and a month on month increase of 17.02%; 21q4 realized a net profit attributable to the parent company of 57.36 million yuan, a year-on-year increase of 51.47% and a month on month increase of 17.33%. The “1 + 3” development strategy has helped to steadily promote various fields: “1” business areas: further increase the market share in the fields of civil air quality gas sensors and vehicle mounted sensors, among which the downstream application fields of civil air quality gas sensors have expanded from the field of environmental appliances to the fields of clean appliances, environmental appliances, smart buildings and so on; The on-board sensor product line has been further extended, from the gas sensor of automobile comfort system to the new refrigerant leakage monitoring sensor and power battery thermal runaway monitoring sensor. The fixed-point project of gas sensor of automobile comfort system continues to grow; The foreign trade business dominated by civil air quality gas sensors and on-board sensors maintained rapid growth year-on-year. Business areas of “3”: the achievement transformation ability of ultrasonic gas meter, high temperature sensor, medical and health gas sensor and other fields has been further improved. Among them, the main project of Jiashan Industrial Park, a fund-raising project, has been completed, laying a foundation for the capacity release of ultrasonic gas meter and its modules; The packaging and supply chain capabilities of high temperature sensor equipment have been verified, and the products have begun to enter the verification and promotion stage; The application field of medical and health gas sensors was further expanded to anesthesia machines, monitors and other products, and the sales revenue maintained a rapid growth year-on-year. Increase R & D investment, reduce cost and increase efficiency: in the past 21 years, the company further increased R & D investment, improved the self-production rate of key parts, enhanced the independent and controllable ability of the supply chain, effectively controlled the cost and promoted the gross profit margin.
Relying on the comprehensive technical platform and product portfolio advantages, continue to develop China’s international top customers
The company has a relatively comprehensive gas sensing technology platform. Its products have covered the fields of air quality, environmental monitoring, industrial process, safety monitoring, medical and health care, intelligent measurement and other fields, and has formed an initial product portfolio. By the end of June 21, the company’s products have been matched with Philips, Daikin, Panasonic, Midea, Gree, Haier, Hisense, Xiaomi, TCL Kingclean Electric Co.Ltd(603355) , Jiangsu Yuyue Medical Equipment And Supply Co.Ltd(002223) , Jaguar Land Rover, FAW Volkswagen, FAW Hongqi, Valeo, Mahler, Bosch and other well-known brands at home and abroad. Among them, on-board sensor: the fixed-point whole life cycle of on-board project is about 5 years, and the fixed-point to delivery period is about 6-12 months. After obtaining iatf16949 automobile industry quality management system certification in 2017, the company entered the list of international Chinese automobile customers and suppliers, and opened the supporting of sensors in the field of vehicle mounted. After several years of cultivation, the company’s on-board sensors entered the output period in 21 years, and the number of sensors required for the fixed point of on-board sensor project increased to about 10 million. While the output value was gradually released, the new fixed point of project was also gradually increased. For example, in 21 years, the company made a breakthrough in the fixed point of project by monitoring the quality of outer space air and controlling the AQM sensor of internal and external circulation of in vehicle air conditioner. With the improvement of the company’s brand influence and internationalization, relying on precision marketing, the company has the ability to continuously develop China’s international top customers.
The sensor market is in the ascendant, and the company continues to make technological innovation and seize good opportunities
The global and Chinese sensor markets have maintained a good growth trend. According to yole D é veloppement data, the market scale of the global sensor industry increased from US $72 billion in 2010 to US $226.5 billion in 2019, with an average annual compound growth rate of 14%; According to CCID Consulting data, the scale of China’s sensor market in 2019 was about 218.88 billion yuan, which is expected to grow to 295.18 billion yuan by 2021, maintaining a rapid growth of 17.6%. With the rapid development of Internet and Internet of things, the downstream fields of gas sensors, such as smart home, automotive electronics, smart medical and other smart life industries, are in a period of rapid development, showing good development prospects. Under the leadership of the professional technical team and the guarantee of improving the management system, the company has gradually formed its own unique competitive advantages in R & D capacity, technical level, product matrix, large-scale production, customer resources and application fields.
Profit forecast and investment suggestions: as an excellent supplier of gas sensors and analytical instruments, the company’s customer structure is relatively stable. Its main customers are well-known enterprises at home and abroad, with a prominent industry position; The expansion of market scale and domestic demand for gas sensors and gas analysis instruments provides a good development opportunity for the company. It is estimated that the net profit attributable to the parent company in 22-23 years will be 260 million and 374 million yuan, corresponding to 37x and 26x PE. The rating of “overweight” is reiterated.
Risk tips: the progress of new business is not as expected, the market competition is intensified, the risk of covid-19 epidemic continues, the performance express is the company’s preliminary accounting data, and the actual data is subject to the annual report
