\u3000\u3 China Vanke Co.Ltd(000002) 938 Avary Holding (Shenzhen) Co.Limited(002938) )
Event: on March 17, the company released its annual report for 2021. In 2021, the company achieved a total operating revenue of 33.315 billion yuan, a year-on-year increase of 11.6%; The net profit attributable to shareholders of listed companies was 3.317 billion yuan, a year-on-year increase of 16.75%; The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was 3.105 billion yuan, a year-on-year increase of 15.25%; The basic earnings per share was 1.43 yuan / share, a year-on-year increase of 16.26%.
The rebound in shipments of consumer electronics products has driven the steady growth of the company’s performance: according to the company’s 2021 annual report, the operating revenue of consumer electronics and computer board business reached 11.076 billion yuan, a year-on-year increase of 43.57%, accounting for 33.25% of the company’s total revenue from 25.84% in 2020. The company disclosed in its annual report that the global economic recovery has led to a rebound in shipments of consumer electronic products such as smartphones, tablets and laptops, which is the driving factor for the steady growth of the company’s sales revenue. According to IDC data, the global shipments of smart phones reached 1.35 billion in 2021, with a year-on-year increase of 4.5%. With the increasing demand of the terminal market for lightweight, multifunctional and high-performance electronic products, it will also drive the improvement of the performance requirements of PCB products. According to the company’s annual report, the company is taking “light and short, high and low, fast and exquisite intelligence” as the research and development direction, and layout in advance across a variety of application scenarios. In addition, under the trend of meta universe, the AR / VR industry has ushered in rapid development. According to trendforce data, the global shipment of AR / VR equipment in 2021 was 9.86 million units. Against the background of the increase in the demand for long-distance interaction during the epidemic, the global shipment in 2022 will reach 14.19 million units, a year-on-year increase of 43.9%, which will also bring new growth momentum to the company’s demand for soft board and high-end hard board.
The rapid growth of the automotive and server segment will provide a new performance growth point for the company’s development: according to the company’s 2021 annual report, the company achieved a sales revenue of 256 million yuan for automotive / server and other product boards in 2021, with a year-on-year increase of 74.12%, which is the business segment with the highest growth rate of the company. At present, the global automotive industry is developing towards electrification and intelligence, and the output value of circuit boards for motor vehicles is increasing. According to prismark’s estimation, the output value of electronic products in the global automotive industry will increase from about 214 billion US dollars in 2020 to about 324 billion US dollars in 2025, with a CAGR of 8.6%, which is expected to become a new blue ocean for the development of PCB industry. In the server field, with the maturity of 5g, cloud computing, AI and other new technologies, the acceleration of data center construction, and the continuous rise of server shipments, the full launch of the “East digital West computing” project will further drive the development of the server industry, and then drive the growth of the PCB market. According to prismark’s prediction, the global server PCB output value will increase from US $5.692 billion in 2020 to US $6.765 billion in 2024. The company expects that the automobile / server business will continue to develop rapidly in the future and become one of the important performance growth points of the company.
Actively invest in the expansion of production to provide sustainable driving force for the development of the company: in order to grasp market opportunities, consolidate and enhance the leading position in the industry, the company actively expands production capacity. According to the company’s annual report, in terms of flexible boards, Huai’an flexible multilayer printed circuit board expansion project has been invested, and the first phase of Taiwan Kaohsiung FPC project is also continuously promoted; In terms of hard board, Qinhuangdao high-end HDI printed circuit board expansion project has been invested, and Huai’an ultra-thin circuit board investment plan with a target capacity of 93000 square meters / month has achieved mass production. Huai’an No. 1 Park, whose target application fields are servers and automotive electronics, and Huai’an No. 3 Park, whose main products are high-end HDI and advanced SLP, are also being promoted and constructed as planned. After the completion of capacity construction, the company’s one-stop supply product layout will be further improved to better serve the needs of customers.
Investment suggestion: we estimate that the company’s revenue from 2022 to 2024 will be 37.637 billion yuan, 43.062 billion yuan and 49.764 billion yuan respectively, and the net profit attributable to the parent company will be 3.958 billion yuan, 4.519 billion yuan and 5.383 billion yuan respectively, maintaining the “Buy-A” investment rating.
Risk warning: raw material price fluctuation risk; Market competition intensifies risks; Exchange rate change risk.
