\u3000\u3 Guocheng Mining Co.Ltd(000688) 686 Opt Machine Vision Tech Co.Ltd(688686) )
Events
On March 29, the company released its annual report for 2021.
Key investment points
In 2021, the operating revenue was + 36% year-on-year, and the net profit attributable to the parent company was + 24% year-on-year
In 2021, the company realized a revenue of 880 million yuan, a year-on-year increase of + 36%; The net profit attributable to the parent company was 300 million yuan, a year-on-year increase of + 24%, and the annual performance slightly exceeded expectations. In 2021, the prosperity of the new energy industry was high. Thanks to the growth of lithium battery business and the expansion of 3C electronics industry, the company’s revenue side achieved rapid growth; Affected by factors such as product structure and expense growth, the growth rate of the company’s net profit is lower than that of revenue.
At the end of 2021, the company’s inventory reached 150 million yuan, a year-on-year increase of + 115%; Contract liabilities reached 18.72 million yuan, a year-on-year increase of + 361%, with full orders. In Q4 of 2021, the company realized a revenue of 230 million yuan, a year-on-year increase of + 29% and a month on month increase of – 8%; The net profit attributable to the parent company was 84.9 million yuan, with a year-on-year increase of – 35% and a month on month increase of + 14%. The quarterly profitability tended to improve.
Profitability has been under pressure in the short term, and the cash flow situation has improved significantly
Due to the increase in the proportion of new energy revenue with low gross profit margin, the gross profit margin of the company’s main business in 2021 was 66.5%, a year-on-year increase of -7.4pct; The company’s net profit increased by 34.4 PCT year-on-year in 2023 due to pressure factors such as short-term expenses. With the release of the demand for non-standard products, the scale effect is expected to improve the profitability of the company.
In 2021, the company’s four expenses increased significantly, of which the sales expense was 140 million yuan, a year-on-year increase of + 60%; The management fee was 27.6 million yuan, a year-on-year increase of -0.01%; The R & D cost was 140 million yuan, a year-on-year increase of + 79%, and the financial cost was – 18.45 million yuan. In 2021, benefiting from income growth and positive payment collection policies, the net cash flow from operating activities of the company reached 170 million yuan, a year-on-year increase of + 80%, and the cash flow situation was greatly improved.
We will actively deploy new energy sources, maintain high growth, expand overseas markets of semiconductors and automobiles, and seek new opportunities
3C electronics and new energy are the main downstream application fields of the company. In 2021, the revenue of the two businesses accounted for nearly 90%, and that of other industries accounted for only about 10%; With the company’s active layout in the fields of semiconductors and new energy vehicles, it is expected that the proportion of other businesses of the company will increase to 15% in 2022.
In the 3C field, the company is the main domestic supplier of Apple’s machine vision. It is expected to make a breakthrough in modules, parts and other links from the assembly end to the non assembly field, and continuously improve the penetration of downstream fields. In the field of lithium new energy, the company directly connects with lithium battery production equipment manufacturers, and the customer terminals include catl, ATL, Byd Company Limited(002594) , Funeng and other leading enterprises in the industry. At the same time, the company actively expands new fields such as semiconductors and new energy vehicles, focusing on high gross profit and non-standard products to strengthen customer stickiness.
Profit forecast and valuation
The company’s revenue is expected to be 1.9 billion yuan in 2024, with a year-on-year increase of 3.2% to 1.14 billion yuan in 2024; The net profit attributable to the parent company was RMB 380 / 480 / 620 million respectively, with a year-on-year increase of 26% / 27% / 28%, corresponding to PE of 40 / 32 / 25 times, maintaining the “overweight” rating.
Risk tips
Large fluctuations in the industry; The industry competition intensifies and the profit margin of the company declines; New product R & D and marketing are not as expected
