\u3000\u3 Guocheng Mining Co.Ltd(000688) 800 Suzhou Recodeal Interconnect System Co.Ltd(688800) )
[matters]
The company released the 2021 performance express, and the annual performance increased rapidly. According to preliminary accounting, the company’s revenue in 2021 was 901 million yuan, with a year-on-year increase of 47.56%. The net profit attributable to the parent company was 115 million yuan, with a year-on-year increase of 56.39%. The net profit not attributable to the parent company was 98.72 million yuan, with a year-on-year increase of 49.01%, corresponding to the revenue of 301 million yuan in the single quarter of 2021q4, with a year-on-year increase of 93.06%, a month-on-month increase of 18.58%, and the net profit attributable to the parent company was 43.64 million yuan, with a year-on-year increase of 262.16%. In 2021, the net profit attributable to the shareholders of the listed company after deducting non recurring profits and losses increased significantly compared with the previous reporting period, mainly due to the increase of the company’s new energy sales orders. With the efforts of the company’s management team, in the face of the more complex and changeable market environment in 2021, the company took effective countermeasures, strengthened internal management and achieved good results.
[comments]
The company focuses on the design, development and manufacturing of connection system products. The main products are divided into connectors, cable components, system modules, etc. the products are widely used in data communication, new energy vehicles, industrial control, medical equipment and other fields. Among them, connectors mainly include high-frequency / low-frequency connectors, optical fiber connectors, high-voltage and high current industrial connectors, high-speed connectors, photoelectric sensors, etc., cable components mainly include RF cable components, power cable components, automobile harness, etc., and system modules mainly include high-voltage distribution box, motor controller, etc. The issuer has always closely followed the development trend of downstream industries, adhered to technological innovation as the development core, and has a number of core technologies in the two core fields of mobile communication and new energy vehicles.
In the field of communication, the company has deeply cultivated the board to board high-speed / RF connector technology. The RSMP board to board RF connector developed in the 5g field has the performance of low signal loss, low standing wave ratio and less microwave leakage. It has become the preferred solution for the AAU connector of 5g base station. It is an important supplier for ZTE, Ericsson, Nokia, Samsung and other manufacturers. It has achieved a good market share in the wave of 5g construction in the world, It will benefit from 5g construction dividends for a long time.
In the field of new energy vehicles, relying on its core technical advantages in high voltage and high current connectors, power exchange connectors and so on, the company directly serves vehicle and parts manufacturers including Weilai, Chang’an, SAIC, Contemporary Amperex Technology Co.Limited(300750) and indirectly serves T company of the United States. In the field of power exchange, the company has obvious leading edge in technology and is the main supplier of power exchange connector components of Weilai automobile. According to the prediction of China electric vehicle hundred people’s Association, the number of replacement power stations in China will reach 10000 in 2035. The company will benefit from the continuous improvement of the penetration rate of new energy vehicles and the promotion of power exchange mode. In terms of future layout, the company will also promote the comprehensive integration of new energy vehicles and communications along the development direction of downstream electrification, networking, intelligence and sharing.
[investment suggestions]
It is estimated that the company’s revenue from 2021 to 2023 will be 901, 1500 and 2265 million yuan respectively, the net profit attributable to the parent company will be 115, 201 and 295 million yuan respectively, and the EPS will be 107, 1.86 and 2.73 yuan / share respectively. The corresponding current PE will be 102, 59 and 40 times respectively, and will be rated as “overweight”.
[risk tips]
The downstream market demand was lower than expected, and the penetration rate of new energy vehicles slowed down
The rising cost of raw materials has put pressure on the profitability of the company
