\u3000\u3 China Vanke Co.Ltd(000002) 179 Avic Jonhon Optronic Technology Co.Ltd(002179) )
In 2021, the company’s revenue increased by 25% year-on-year, and the net profit attributable to the parent company increased by 38% year-on-year
The company achieved a revenue of 12.87 billion yuan in 2021, with a year-on-year increase of 25%; The net profit attributable to the parent company was 1.99 billion yuan, a year-on-year increase of 38%. In a single quarter, the company achieved a revenue of 2.99 billion yuan in Q4, a year-on-year increase of 13%; The net profit attributable to the parent company was 370 million yuan, a year-on-year increase of 8%.
Defense field: the company fully guarantees production and delivery, and the market recognition continues to improve; Communication and Industry: the company has made breakthroughs in intelligent travel, data center and other directions, and its overseas business has achieved rapid growth; In the field of new energy vehicles: the company grasped the growth opportunity of the industry, deepened cooperation with key customers, and doubled the annual order.
The company’s profitability continued to improve and there were sufficient orders on hand
In recent years, the company’s profitability has been continuously improved. In 2021, the overall gross profit margin reached 37.0%, with a year-on-year increase of 0.97pct; The net interest rate reached 16.5%, a year-on-year increase of 1.66pct. The cost side company continued to increase R & D investment, and the R & D cost increased by 36% year-on-year in 2021; Sales and management expenses increased by 12% and 32% respectively year-on-year. By the end of 2021, the company’s inventory reached 4.73 billion yuan, an increase of 70% over the beginning of the year, and the contract liabilities reached 1.03 billion yuan, a significant increase of 246% over the beginning of the year, indicating that the company has full production tasks and sufficient orders on hand.
Military modernization drives the demand for special connectors, and the company, as an industry leader, is expected to fully benefit. According to the data of forward-looking Industry Research Institute, the compound growth rate of China’s special connector market will reach 11% from 2010 to 2020. Looking forward to the 14th five year plan, the acceleration of military informatization and modernization will further promote the demand for special connectors. The special connector industry has high barriers and stable competition pattern. As a leader in the industry, the company is expected to fully benefit.
The volume of new energy vehicles + 5g communication demand is expected to open up the second growth curve of the company
The rise of new energy vehicles has changed the supporting pattern of traditional on-board connectors. The company’s high-voltage connectors have quickly opened the market and achieved a leading share. In the future, it is expected to continue to benefit from the improvement of the penetration rate of new energy vehicles and the market share of the company. In the field of communication connectors, the company’s customers cover the world’s leading 5g equipment manufacturers. Under the background of the steady progress of 5g construction in China and the continuous acceleration of overseas 5g construction, the company’s communication connector business is expected to achieve rapid growth.
Issued 3.4 billion fixed increase fund-raising to expand production, and the company’s advantageous position was further consolidated
According to the company’s announcement on January 14, the company issued 35576000 shares at a fixed increase price of 95.57 yuan / share and raised 3.4 billion yuan for connector capacity expansion. The completion of the project will provide strong support for the growth of the company’s businesses and further consolidate the company’s advantageous position in the connector industry.
Avic Jonhon Optronic Technology Co.Ltd(002179) : the compound growth rate of performance in the next three years is expected to be 31%
We expect the net profit attributable to the parent company from 2022 to 2024 to be RMB 2.63/34.5/4.5 billion respectively, with a year-on-year increase of 32% / 31% / 30%, corresponding to PE of 34 / 26 / 20 times, maintaining the “buy” rating.
Risk tips:
Special business orders are less than expected; The expansion of civil products business was less than expected.
