\u3000\u30 Beijing Telesound Electronics Co.Ltd(003004) 16 Suzhou Sushi Testing Group Co.Ltd(300416) )
Event: the company disclosed the annual report of 2021. The annual revenue was 1.5 billion, yoy + 26.74%, and the net profit attributable to the parent company was 190 million, yoy + 53.98%; Q4 achieved a revenue of 445 million, yoy + 20.73%, and a net profit attributable to the parent company of 59 million, yoy + 26.43%.
Benefiting from the high growth of environmental inspection business and the improvement of the profitability of integrated circuit inspection business, the net profit attributable to the parent company achieved rapid growth in 2021. In 2021, the company’s environmental reliability test service business grew rapidly, while the profitability of IC Verification and analysis service business improved significantly. It is expected that the improvement of IC detection business is mainly related to the change of customer structure. Sub business conditions: 1) test equipment: revenue of 532 million yuan (+ 23.45%), gross profit margin of 33.91% (- 3.54 PCT). The company’s equipment sales benefited from the high procurement boom of military industry, However, considering that it will take some time from order to revenue settlement, it is expected that the growth rate of subsequent equipment revenue may continue to increase, and the gross profit margin of equipment will decline to a certain extent, which is mainly affected by the rise of raw material prices. In 2021, the direct material cost of the company’s test equipment increased by 31.9% year-on-year, and the year-on-year growth rate exceeded the growth rate of revenue, while the growth rates of direct labor (YoY + 22.86%) and indirect expenses (YoY + 21.88%) were less than the growth rate of revenue, reflecting a certain scale effect; 2) Environmental and reliability test service: the revenue is 656 million yuan (+ 41.69%), and the gross profit margin is 57.11% (- 2.38pct). The company has the advantage of self-produced equipment in the development of environmental reliability test service business, and the military industry is an important demand field for environmental reliability test service, which is also the main downstream demand side of the company’s equipment. It has the advantage of customer homogeneity. The company’s laboratory has been greatly expanded in the past two years, Establish the rapid growth of service business in recent years; 3) IC Verification and analysis services: the revenue is 219 million yuan (+ 28.37%), and the gross profit margin is 54.27% (+ 10.44pct). The increase of gross profit margin is mainly related to the change of customer structure. According to the data of Yite (Shanghai), the net profit in 2021 has reached 55 million yuan (22 million yuan in the same period last year). The significant increase of net profit is related to the strong downstream demand and the improvement of customer structure.
The company is expected to maintain rapid growth in 2022: 1) the company’s environmental test equipment business is expected to continue to benefit from the growing demand for military industry and new energy vehicle testing, and the accumulated orders are expected to be delivered in 2022; 2) On the one hand, the IC testing business benefits from the high demand for automotive electronic testing, on the other hand, the company’s expanded Suzhou semiconductor testing base has contributed new increment; 3) The environmental reliability testing business has benefited from the company’s laboratory expansion bonus in recent two years. For example, Chengdu Guangbo, Xi’an Guangbo and Nanjing Guangbo laboratories are expanding in succession. The continuous expansion of production capacity provides a guarantee for the later development of the company.
Investment suggestion: considering the good development momentum of various businesses of the company, it is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 280 / 370 / 470 million respectively, and the corresponding PE will be 31x / 23x / 18x respectively, maintaining the “recommended” rating.
Risk warning: the commissioning progress of the new project is lower than the expected risk, and the downstream demand slows down.
