\u3000\u300 Shenzhen Guohua Network Security Technology Co.Ltd(000004) 9 Shenzhen Desay Battery Technology Co.Ltd(000049) )
Event: the company announced that in the annual report of 2021, the annual revenue reached 19.471 billion yuan, a year-on-year increase of 0.38%; The net profit attributable to the parent company was 794 million yuan, a year-on-year increase of 18.53%.
In the past three years, the company’s operating gross profit margin and net profit margin have continued to improve: from 2019 to 2021, the company’s sales gross profit margin was 8.36%, 8.67% and 9.37% respectively, increasing year by year, and the sales net profit margin was 3.63%, 3.82% and 4.08% respectively, with year-on-year growth. The main reason is that the gross profit margin of the company’s sector except notebook computer is increasing; At the same time, the business structure is also changing. The proportion of revenue from power tools, smart home and travel business with high gross profit margin has increased to 15.04%, and the gross profit margin of products has increased by 1.25pct to 14.85%; At the same time, the revenue share of low gross margin smartphone and notebook tablet business is declining, with a decline of 7.78% and 3.10% respectively.
The energy storage business is growing rapidly, and the investment in electric cells is expected to rise simultaneously: the energy storage industry is in a period of rapid development, and the global shipment in 2021 increased by 132.6% year-on-year. Benefiting from the development of energy storage industry, the company has become the main supplier of Huawei, guruiwat, Hua Guangdong Baolihua New Energy Stock Co.Ltd(000690) and other companies, with a revenue of 349 million yuan in 2021, a year-on-year increase of 205.79%; At the same time, the company invested 7.5 billion yuan to lay out 20gwh energy storage cells, aiming to provide customers with integrated solutions. The energy storage cells are expected to start in large quantities in Q1 2023, and the project is expected to reach full production, with an annual output value of 12 billion yuan.
Overweight SIP system packaging and integration business to consolidate the leading position in the industry: the company is the main supplier of power system management, packaging and integration for front-line major customers, and aims to seize the opportunity of miniaturization and system modularization of electronic products. The company has invested 2.1 billion yuan in overweight SIP business to strengthen its business advantages. The SIP market share is expected to further improve. The project will reach production within two years after it is put into operation, and it is expected to increase the company’s revenue by 5 billion yuan after it is completed, Industry leading advantages were further strengthened.
Investment suggestion and profit forecast: we believe that the business structure of the company has improved, the energy storage sector has developed rapidly, and we are optimistic about the long-term development of the company. It is estimated that the company’s revenue from 2022 to 2024 will be 22.014/25.110/29.171 billion yuan respectively, and the net profit attributable to the parent company will be 973 / 12.71/1.609 billion yuan, corresponding to 11 / 9 / 7 times of PE, giving a “buy rating”
Risk warning: the progress of energy storage is less than expected; Product prices fell more than expected; Customer demand is less than expected.
