\u3000\u3 China Vanke Co.Ltd(000002) 463 Wus Printed Circuit (Kunshan) Co.Ltd(002463) )
The company issued the annual report of 2021. In 2021, the company realized revenue of 7.419 billion yuan (- 0.55%), net profit attributable to parent company of 1.064 billion yuan (- 20.8%), and net profit deducted from non attributable to parent company of 957 million yuan (- 24.22%). The basic EPS is 0.56 yuan and the weighted average roe is 15.74%.
The performance of automobile board business has increased greatly, and the product structure has been continuously optimized. In 2021, the sales volume of electric vehicles in China increased significantly by 158% year-on-year, driving the sharp increase in the demand for automobile related electronic components. In 2021, the company realized a revenue of RMB 1.682 billion from automobile board business, with a year-on-year increase of 26.54%. Under the condition of sharp rise in raw material costs, the gross profit margin of automobile board business decreased by only 0.33%. In the future, the company will continue to expand the production capacity of Huangshi No. 2 plant and expand its competitive advantage.
Changes in the external environment drag down the communication board business, which is expected to revive its performance with 5g in the future. In 2021, affected by covid-19 epidemic, Sino US trade war and fierce competition in relevant markets, the company’s communication board business was affected to a certain extent, and the operating revenue decreased by 11.28%. However, with the large-scale development of 5g applications in China, the demand for high-speed network and data storage will be more vigorous. The company’s communication board business is expected to shift from 5g wireless to high-speed network equipment and data center.
5g construction promoted the growth of PCB business, and the potential cost correction helped the performance rebound. With the gradual deepening of the construction of digital economy, the demand for high-frequency and high-speed PCB products will accelerate in the future. As one of the few manufacturers in China that can provide high and multi-layer PCBs, the company will continue to give full play to its output and technical advantages in the future. At the same time, with the gradual easing of the “core shortage” problem, the supply chain shortage is expected to be solved gradually, so that the company’s performance rebounds to the better.
Profit forecast: from 2022 to 2024, we expect the company’s revenue to be 85.56/98.30/10.873 billion yuan (+ 15.3% / 14.9% / 10.6%) respectively; The net profit attributable to the parent company was 1.472/1.738/1.87 billion yuan (+ 38.5% / 18.1% / 7.6%). The latest closing price corresponding to PE is 18 / 15 / 14 times respectively. The company is deeply engaged in the field of circuit board. Under the background of the development of automotive electronics and 5g communication, its performance is expected to achieve sustained and rapid growth. It is covered for the first time and is rated as “buy”.
Risk warning: demand recovery is less than expected; Raw material prices recovered less than expected.
