\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 231 Universal Scientific Industrial(Shanghai)Co.Ltd(601231) )
in Universal Scientific Industrial(Shanghai)Co.Ltd(601231) 2021, the operating revenue reached 55.300 billion yuan, with a year-on-year increase of 15.94%, and the operating revenue of various products increased year-on-year; The operating profit was 2.132 billion yuan, a year-on-year increase of 8.67%; The net profit attributable to shareholders of listed companies was 1.858 billion yuan, a year-on-year increase of 6.81%.
China’s electronic manufacturing service industry leader, global industrial layout. The company is an industry leader in SIP miniaturization technology. In 2021, a number of advanced technologies were integrated into the miniaturization and multifunctional sip. In the ranking of global electronic manufacturing service industry, the company ranked 12th in terms of revenue scale in 2020, and its annual growth rate of revenue and operating net profit margin ranked among the top in the industry. The company completed the acquisition of AFG, the second largest EMS company in Europe, in December 2020. At present, it has 27 production sites in 10 countries (including regions) to serve global well-known brand manufacturers.
Wireless communications and consumer electronics grew steadily. In 2021, the revenue of wireless communication and consumer electronics reached 21.211 billion yuan and 18.566 billion yuan respectively, achieving stable growth. Wireless communication products mainly include wireless communication system level packaging module (SIP), system level Internet of things module, Internet of things module, remote communication low-power module, enterprise level wireless router, etc; Smart wearable SIP module products include smart watch SIP module, true wireless Bluetooth headset (TWS) module, optical heart rate module, etc.
The revenue level of industrial electronics and automotive electronic products increased significantly. Benefiting from the recovery of global economic growth in 2021, the electric vehicle, intelligent manufacturing and new energy industries have driven the demand growth of relevant business sectors, and the growth of the company’s EMS / ODM business has accelerated. In 2021, industrial electronics and automotive electronics achieved revenue of 7.276 billion yuan and 2.605 billion yuan respectively, with a year-on-year increase of 67.26% and 54.05%. The vehicle power business has obtained the manufacturing certification of iso26262, and the assembly, production and testing of power modules of power semiconductor international manufacturers are arranged. It is expected to officially produce IGBT and SiC power modules used in inverter for electric vehicles in 2022.
Investment advice
It is estimated that the revenue of the company from 2022 to 2024 will be 62.632/71.144/82.342 billion yuan respectively, with a year-on-year increase of 13.3% / 13.6% / 15.7%, and the net profit will be 2.239/27.25/31.97 billion yuan respectively, with a year-on-year increase of 20.5% / 21.7% / 17.3%. The current price corresponds to 12 times of PE in 2022. Considering the strong market demand of the company and the rapid growth of automotive electronics business, the “buy” rating is given for the first time.
Risk tips
Downstream demand is lower than expected, and industry competition intensifies.
