\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 09 Jiangsu Gian Technology Co.Ltd(300709) )
Event: in 2021, the company achieved an operating revenue of 2.4 billion yuan, a year-on-year increase of 53.70%; The net profit attributable to the parent company was 184 million yuan, a year-on-year increase of 29.64%; Deduct non net profit of 72.282 million yuan, a decrease of 37.46% over the same period of last year. The rapid growth of the company’s revenue segment is mainly benefited from the growth of orders in important major customer markets and the development of folding screen mobile phone market. At the same time, antxin was included in the scope of the company’s consolidated statements on March 31, 2021. The company’s expenses increased during the period, of which the interest expense of convertible corporate bonds was 277753 million yuan, an increase of 253992 million yuan over the same period of last year; The share based payment fee of the equity incentive plan was 179207 million yuan, an increase of 103971 million yuan over the same period of the previous year. In 2021, the company’s R & D expenses increased by 17.83% year-on-year, mainly for the R & D of new projects and new materials.
The operating income of Andersen in 2021 after the consolidation on March 31, 2021 is about 380 million yuan. After deducting non recurring profits and losses, the net profit attributable to the parent company is -57.689 million yuan, and the performance commitment in 2021 is 24 million yuan. The main reasons for the failure to realize the performance commitment are: 1) under the background of rapid expansion of income, there are over allocation of R & D personnel and sluggish materials; 2) Market competition intensifies, and the company’s production management, mass production planning and other capabilities are still lacking; 3) The cost of raw materials and labor increased.
Multi brand folding screen is ready to go, the superposition price is falling, and the heat of folding screen is rising again. (1) In January 2022, glory launched its first folding screen flagship machine magicv. The hinge design in the form of water droplets is adopted. On the premise of ensuring performance and large screen experience, the thickness of the fuselage in the unfolded state is 6.7mm (excluding the thickness of the screen frame). Light creases ensure that the screen can still maintain a long life after opening and closing for many times. (2) Samsung Huawei leads the trend, and new models emerge one after another. Samsung and Huawei are one of the first mainstream brands to lead the boom of folding screen: Samsung flip, fold and Huawei Matex series have continued to produce new products since November 19. The share of 21q3 Samsung folding screen mobile phones is as high as 93%. (3) Looking forward to the progress of multi brand layout, folding screen mobile phones will be more prosperous and ecological! The first folding mobile phones of Xiaomi (mixfold) and oppo (findn) were released in 2021. Folding screen rotating shaft is the most important part of folding screen mobile phone, which is composed of hundreds of parts, of which the most important part is MIM part, and the manufacturing process is complex. At present, the selling price of folding screen terminals is mostly reduced to less than 10000 yuan. It is expected that the sales volume will continue to exceed expectations in 2022, which will drive the rapid growth of MIM industry.
MIM technology accelerated its entry into the wearable field, and the business boundary expanded significantly Jiangsu Gian Technology Co.Ltd(300709) in its early days, it mainly processed the watch case and bottom case for Fitbit, a watch bracelet manufacturer. At present, apple, Samsung, Huawei, Xiaomi and other terminal giants have carried out substantial innovation and iteration on smart watch products. At the same time, AR / VR equipment tends to be lightweight, and the complexity of internal structure has also been significantly improved. MIM process is suitable for manufacturing metal parts with complex shape, high precision requirements and relatively small size, In the trend of consumer electronics industry, the processing advantage is becoming more and more prominent. We believe that Jiangsu Gian Technology Co.Ltd(300709) as a leading manufacturer of MIM technology, is expected to deeply benefit from the upgrading bonus of wearable devices.
Closely following the demand of 5g era, the transmission and heat dissipation division is widely used to build a precision manufacturing platform enterprise. The company will further accelerate the development of transmission and heat dissipation business. At present, it has successfully provided customers in the fields of smart phones, smart headphones and smart appliances with batch precision transmission mechanism products and heat pipe, VC and other heat dissipation products. In the future, with the rapid growth of folding screen mobile phones and the wide application scenarios of transmission mechanisms such as precision motor gearbox modules in smart homes, smart appliances and other fields, the company will vigorously tap the relevant market demand and continue to improve the profitability of the transmission sector.
Enter the precision plastic sector, give full play to the synergy of various businesses, and actively layout automotive electronics. The subsidiary Ruidian precision products cover the application fields such as automotive interior, sports machine components, consumer electronics and medical devices. The further penetration of Jiangsu Gian Technology Co.Ltd(300709) in the field of automotive electronics and medical devices will give full play to the synergy of MIM business, precision plastic business, transmission business and heat dissipation business in the overall components, improve the added value of the company’s products and enhance the company’s competitiveness.
Profit forecast and investment suggestions: we expect the company to achieve an operating revenue of RMB 3.077/38.474808 billion from 2022 to 2024, with a year-on-year increase of 28.0% / 25.0% / 25.0%, and a net profit attributable to the parent company of RMB 309 / 401 / 519 million from 2022 to 2024, with a year-on-year increase of 67.9% / 30.0% / 29.2%. At present, the PE corresponding to the stock price is 21.9 / 16.9 / 13.1 x, maintaining the “buy” rating.
Risk warning: the downstream demand of the industry does not meet the expectation, and the process promotion progress does not meet the expectation
