\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 183 Shengyi Technology Co.Ltd(600183) )
Event: the company released the annual report for 21 years. In the 21 years, the operating revenue was 20.274 billion yuan, yoy + 38.04%, the net profit attributable to the parent was 2.830 billion yuan, yoy + 68.38%, and the net profit not attributable to the parent was 2.528 billion yuan, yoy + 57.45%.
Comments: in the 21st century, the annual performance was brilliant, and the revenue and net profit reached a new high. In the 21st year, the operating income was 20.274 billion yuan, yoy + 38.04%, and the net profit attributable to the parent company was 2.830 billion yuan, yoy + 68.38%, deducting the net profit not attributable to the parent company of 2.528 billion yuan, yoy + 57.45%. In the whole year of 21, the gross profit margin was 26.82%, yoy + 0.04pct, and the net profit margin was 14.43%, yoy + 2.17pct. Corresponding to the single quarter of 21q4, 21q4 achieved revenue of 4.896 billion yuan, yoy + 22.47%, net profit attributable to parent company of 490 million yuan, yoy + 29.81%, net profit deducted from non attributable to parent company of 390 million yuan, yoy + 4.8%, corresponding to gross profit margin of 23.66%, yoy-0.56pct, qoq-2.54pct, net profit margin of 10.33%, yoy + 0.46pct, qoq-6.91pct. Gross profit margin is affected by mobile phone HDI, Nb, decline in demand of traditional household appliances & high operation of raw materials. In terms of products, in 21 years, the revenue of copper clad laminate, adhesive sheet and PCB was 16.190/3.508 billion yuan, yoy + 49.23% / – 1.43%, the gross profit margin was 27.47% / 17.57% and yoy + 1.93pct / – 8.48pct respectively. In 21 years, the sales volume of copper clad laminate was 114 million square meters, yoy + 11.55%; 174 million meters of adhesive sheets were sold, yoy + 25.78%; Sold 1.1736 million square meters of printed circuit boards, yoy + 44.67%. The ratio of sales / management / R & D / financial expenses in 2021 is 1.14% / 4.49% / 4.76% / 0.5% respectively, yoy-0.08pct / – 0.41pct / – 0.08pct / – 0.28pct. Continue to invest in R & D, focusing on the thermosetting system for automotive millimeter wave radar, product development meeting the transmission rate of 112gbps, long-term high-voltage resistant substrate for new energy vehicle power supply, ultra-thin laminated adhesive film for packaging carrier sector, and copper clad laminate substrate suitable for AIP application.
Continue to be optimistic about the growth of the company as a global old base material supplier: benefit from the high boom of mini LED / IC carrier / new energy vehicles in the short and medium term, and have the logic of production expansion + product structure upgrading + localization in the medium and long term:
1) benefit from the high prosperity of automobile / high-speed / mini LED / IC carrier / new energy vehicle in the short and medium term: in terms of product application, the corresponding products of the company’s copper clad laminate have been upgraded from ordinary board and HDI to SLP, mini led and packaging substrate. In the past 21 years, the company’s high-speed materials have obtained important certification in the field of server and made new breakthroughs in important terminals. Automotive materials have obtained the certification of many famous terminals in the fields of automobile high-voltage resistance and thick copper, It has achieved mass production growth of new materials in the fields of automobile, high-speed, mini led and high-order HDI. From the perspective of downstream industries, the prosperity of the company’s automobile sector continues to rise. In addition, the company has a comprehensive layout on new energy vehicles (including 77GHz radar), which is expected to continue to benefit from the continuous improvement of the penetration rate of new energy vehicles.
2) in the medium and long term, the company has the logic of production expansion + product structure upgrading + localization: the company continues to expand production in an orderly manner. In 21 years, Shaanxi Shengyi phase III has been basically completed, the main body of Songshanhu phase VIII packaging carrier project has been capped, Changshu phase II has been capped, Jiangxi phase II is being started, and Jiangxi phase III and Dawan District second manufacturing base have been steadily promoted. The production capacity will increase by about 30% from 2021 to 2025; In addition, the full cycle construction of 5g generates the demand for high-frequency and high-speed copper clad laminate and FCCL. The company breaks through the monopoly of foreign capital. In the medium and long term, localization helps optimize the product structure and maintain the driving force of performance growth.
Investment suggestion: referring to the performance of 21 years and the decline of CCL price, the net profit of the company in 22 and 23 years was reduced from RMB 3.15 and 3.46 billion to RMB 2.52 and 2.95 billion, and the “buy” rating was maintained.
Risk warning: raw material price fluctuation, downstream demand less than expected, product R & D less than expected
