\u3000\u3 Shengda Resources Co.Ltd(000603) 678 Fujian Torch Electron Technology Co.Ltd(603678) )
Event: on March 22, the company released its annual report for 2021, realizing an operating revenue of 4.734 billion yuan, a year-on-year increase of 29.48%; The net profit attributable to the parent company was 956 million yuan, a year-on-year increase of 56.83%; The net profit deducted from non parent company was 949 million yuan, with a year-on-year increase of 61.88%. At the same time, the company issued a profit distribution plan and distributed a cash dividend of 0.48 yuan / share to all shareholders, totaling 220 million yuan.
The business volume and price of components have risen simultaneously, and the stable supply of new materials has been realized: on the whole, the company achieved an operating revenue of 4.734 billion yuan in 2021, yoy + 29.48%; The net profit attributable to the parent company was 956 million yuan, yoy + 56.83%; The net profit deducted from non parent company was 949 million yuan, yoy + 61.88%; Gross profit margin reached 35.52%, yoy + 3.67pct; Sales receipts increased significantly, and the net operating cash flow reached 594 million yuan, yoy + 223702%. By business:
(1) components: military electronics, 5g, new energy and other downstream demand is strong, with domestic substitution accelerated, and the business of self-produced components maintains rapid growth. The company continued to expand production and increase efficiency, continuously optimized the product structure, significantly increased the shipment of high value-added products, and steadily improved its profitability. In 2021, the self-produced components business achieved a revenue of 1.523 billion yuan, yoy + 43.01%, gross profit margin of 78.02%, yoy + 7.49pct. Among them, the joint-stock company achieved a revenue of 1.361 billion yuan, yoy + 42.65%, and a net profit of 689 million yuan, yoy + 58.87%; Guangzhou Tianji achieved a revenue of 174 million yuan, yoy + 37.48%, and a net profit of 58 million yuan, yoy + 44.97%; Fujian mm achieved a revenue of 73 million yuan and a net profit of 02 million yuan.
(2) new materials: in 2021, the products formed a stable supply capacity, the business volume increased steadily, and the revenue was 66 million yuan, yoy + 34.80%, the gross profit margin was 74.44%, yoy + 3.91pct. Among them, Liya new material achieved a revenue of 122 million yuan, yoy + 15.12%, and a net profit of 41 million yuan, yoy + 26.54%; Liya chemical turned losses into profits and realized a net profit of 05 million yuan; Liyatao is not profitable yet.
(3) International Trade: maintain stable cooperation with international well-known manufacturers, actively explore emerging markets such as IOT, 5g and new energy vehicles, and achieve a revenue of 3.062 billion yuan in 2021, with a year-on-year increase of 23.86% and a gross profit margin of 12.92%, with a year-on-year decrease of 1.02pct.
Clear advantages in technology R & D and continuously increase R & D Investment: the company has a complete technology R & D system and forms a series of key technologies from product design, material development to production process. Guangzhou Tianji, a subsidiary, has independent and controllable ceramic dielectric material preparation technology and semiconductor film process. It is one of the few enterprises in China to realize the whole process from the preparation of ceramic, film and other dielectric materials to the production of microwave passive components. Its microwave chip capacitance and dielectric preparation technology “grain boundary layer dielectric substrate” is at the leading level in China; Liya new material casas-300 special ceramic materials has mastered a series of proprietary technologies for the industrialization of “high-performance special ceramic materials” by means of technical exclusive license. In 2021, the company’s R & D investment reached 108 million yuan, yoy + 58.12%.
Attach great importance to talent development, and equity incentive shows confidence: the company has repurchased shares with its own funds through centralized bidding for three consecutive years for the implementation of employee stock ownership plan or equity incentive. In 2021, the company used RMB 29994500 to repurchase 560600 shares. After the repurchase, the special securities account for repurchase held a total of 1953300 shares. In the same period, the company implemented restricted stock incentive and granted 826800 shares to 147 core backbone personnel, accounting for 0.18% of the total share capital, and the exercise price was 30 yuan / share. The incentive plan is based on the revenue or net profit in 2020 and assessed in two years: the first assessment target for the lifting of restrictions on sales is that the growth rate of revenue or net profit in 2021 is not less than 30%, and the first assessment target for the lifting of restrictions on sales is that the growth rate of revenue or net profit in 2022 is not less than 69%. Equity incentive helps to stabilize the core talent team and inject power into the long-term development of the company.
Investment suggestion: we estimate that the operating revenue of the company from 2022 to 2024 will be 5.941 billion yuan, 7.192 billion yuan and 8.691 billion yuan respectively, the net profit attributable to the parent company will be 1.253 billion yuan, 1.580 billion yuan and 1.991 billion yuan respectively, the EPS will be 2.73 yuan, 3.44 yuan and 4.33 yuan respectively, and the corresponding PE will be 19.5 times, 15.5 times and 12.3 times respectively.
Risk warning: downstream demand is less than expected; Product expansion is less than expected; Accounts receivable continued to increase; Market competition intensifies.
