\u3000\u3 Guocheng Mining Co.Ltd(000688) 183 Shengyi Electronics Co.Ltd(688183) )
The company’s 2021q4 profit has ushered in a beautiful reversal, the product structure can be optimized, and the “buy” rating is maintained
The company released its annual report for 2021, which realized an operating revenue of 3.65 billion yuan, yoy + 0.38%, a net profit attributable to the parent of 260 million yuan, yoy-39.8%, of which the operating revenue of 980 million yuan, yoy + 19.1%, a net profit attributable to the parent of 82 million yuan, yoy + 76.5% in a single quarter of 2021q4. Taking into account the company’s capacity climb and product structure adjustment, we lowered the profit forecast for 20222023 and added the profit forecast for 2024. It is estimated that the net profit attributable to the parent company will be 3.9/4.6 (the previous value was 5.6 / 6.9) / 510 million yuan in 20222024, EPS is 0.46/0.56/0.61 yuan, and the current share price corresponding to PE is 24.1/20.1/18.4 times. The company maintains a competitive advantage in the medium and high-end market, server iteration and layout of automotive electronics products, The product structure is continuously optimized and can be expected to maintain the “buy” rating.
2021q4 Dongcheng plant capacity release superimposed product structure adjustment, and the profit increased significantly month on month
The company is going through the stage of product structure adjustment, switching from the communication equipment board dominated by base station products to the network equipment board dominated by servers. Due to the reduction of the specification of communication equipment board products and the intensification of industry competition, the profitability has dropped to a certain extent. The company actively introduces server and automotive electronics customers and optimizes the product structure. The PCB sales volume of the company in 2021 was 1174000 square meters, yoy + 44.7%, and the average unit price was 2994 yuan / square meter, Yoy-32.3%, gross profit margin 17.5%, yoy-8.5%. 2021q4 company achieved remarkable results in cost reduction and efficiency increase, with a single quarter gross profit margin of 21.8%, QoQ + 4.5 PCT / yoy + 1.3 PCT, and its profit showed an inflection point. The second phase of Ji’an Shengyi phase I and the fourth phase of Dongcheng plant have entered the release period, which is expected to match customer orders and contribute revenue.
PCB technology card has significant advantages, and server and automobile PCB products have accumulated a lot
The communication field has high requirements for PCB technology and stability. The company adheres to its competitive advantage and maintains its share in major clients around global market expansion and domestic substitution. In the field of servers, the industry will benefit from China’s “counting from the east to the west” project and speed up. In 2021, the x86 server Whitley platform will enter the distribution period and gradually switch to the next-generation eaglestream platform. The company cooperates with customers in the development of high-end server products. After passing the certification of multiple customers, the server PCB will usher in an inflection point in the company’s revenue end and profit end. In the automotive field, the company entered the market with high-end technology and high reliability production experience, and its revenue accounted for 8% in 2021.
Risk tip: the capacity adjustment of Dongcheng and Ji’an factories of the company is less than expected, the import of core network PCB customers is less than expected, the price increase of upstream raw material copper clad laminate erodes profits, and the server shipment is less than expected
