\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 231 Universal Scientific Industrial(Shanghai)Co.Ltd(601231) )
Event: on March 29, the company released its annual report for 2021, realizing an operating revenue of 55.300 billion yuan, a year-on-year increase of 15.94%; The net profit attributable to the parent company was 1.858 billion yuan, a year-on-year increase of 6.81%; The net profit deducted from non parent company was 1.695 billion yuan, with a year-on-year increase of 4.93%; It is proposed to distribute a cash dividend of 0.26 yuan / share to all shareholders.
The performance is in line with expectations, and the company is growing steadily: in 2021, the company achieved a revenue of 55.3 billion yuan, yoy + 15.94%, mainly due to the rapid growth of EMS / ODM business driven by the development of Feixu consolidated statement, electric vehicle, intelligent manufacturing and new energy industry, as well as the continuous operation of new production lines; The net profit attributable to the parent company was 1.858 billion yuan, yoy + 6.81%. The profitability decreased slightly, but the level of expense control improved. The gross profit margin is 9.62%, yoy-0.83pct, and the net profit margin is 3.36%, yoy-0.29pct, which is mainly affected by the tight supply chain, the upward cost of procurement and transportation, the allocation of asset premium and the increase of related costs caused by the acquisition of Feixu; The sales / management / financial expense ratio is 3.05%, yoy-0.18pct. Net operating cash flow was -1.102 billion yuan, yoy-176.74%, mainly due to the increase of inventory in response to customer order demand. According to the company's announcement, from January to February 2022, the company achieved a revenue of 9.045 billion yuan, yoy + 28.55%. We believe that the adverse factors restricting the company's profitability will be gradually released, and the industrial and automotive electronic products with high added value will increase rapidly. It is expected that the profitability will continue to improve, and the company will usher in a steady growth period.
Continuous optimization of product structure and rapid growth of industry and automotive electricity: Industrial / automotive electronics / computer and storage / communication / consumer electronics / medical products achieved revenue of 7.276/26.05/47.93/212.1118566281 billion yuan respectively, yoy + 67.26% / + 54.05% / + 25.28% / + 4.57% / + 7.85% / 289.85%; The product structure was optimized, and the proportion of industrial and automotive electronic products with high gross profit margin increased from 9.12% / 3.55% in 2020 to 13.16% / 4.71%. According to the company's official website, the company has cut into the power module assembly and testing of power semiconductor international manufacturers, which has been recognized by many European, American and Japanese customers. It is expected to officially produce IGBT and SiC power modules used in inverter for electric vehicles in 2022. We expect that with the continued strong demand for electric vehicles, intelligent manufacturing and new energy, as well as the gradual release of the synergy between Feixu and the company, the revenue scale and profit margin of industrial and automotive products will grow rapidly.
The acquisition of Feixu adds weight to globalization, and the synergy is expected to deepen: according to the company's announcement, Feixu mainly serves European and American customer groups, and its business scope covers industries, energy management, data processing, automotive electronics, consumer technology, transportation, medical treatment and other fields. Its sales are evenly distributed in Europe, the Middle East and Africa (EMEA), the United States, the Asia Pacific and other regions. The company is expected to expand the new terminal market and customer base by integrating the global production bases and technical capabilities of both sides, so as to realize the continuous expansion of global revenue scale. In 2021, the company's revenue in Europe / other (including North America) regions reached 2.803/10.967 billion yuan, yoy + 649.54% / + 35.25%, and the proportion of revenue increased from 0.78% / 17.00% to 5.07% / 19.83%; In the 20192021 year, the Chinese mainland's revenue accounted for 78.40%/73.30%/69.26%, showing a declining trend year by year. Through the acquisition of Feixu, the company's global layout is expected to accelerate and open up a broad growth space.
Investment suggestion: we estimate that the operating revenue of the company from 2022 to 2024 will be 65.386 billion yuan, 76.339 billion yuan and 86.995 billion yuan respectively, the net profit attributable to the parent company will be 2.216 billion yuan, 2.732 billion yuan and 3.281 billion yuan respectively, and the EPS will be 1.00 yuan, 1.24 yuan and 1.48 yuan respectively. The corresponding PE will be 12.1 times, 9.8 times and 8.2 times respectively, so it is rated as "Buy-A" investment.
Risk warning: downstream demand is less than expected; Business expansion is less than expected; Sino US trade frictions intensified.
