\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 09 Jiangsu Gian Technology Co.Ltd(300709) )
In 21 years, the revenue increased by 53.7% year-on-year, and the net profit attributable to the parent company increased by 29.6% year-on-year. In 21 years, the company’s revenue was 2.404 billion yuan (YoY: 53.7%), of which 4q21 revenue was 682 million yuan (YoY: 51.6%). The high growth was due to the rapid development of folding screen market, the growth of customer orders and the inclusion of antxin in the consolidated statements. In the 21st year, the net profit attributable to the parent company was 184 million yuan (YoY: 29.6%), and the net profit attributable to the parent company after deduction was 72.28 million yuan (YoY: – 37.5%). The major difference between the two was as follows: 1) the company’s 60% owned subsidiary Andersen suffered a loss of 53.99 million yuan and failed to meet the performance commitment. The company accrued a goodwill impairment of 89.76 million yuan (recurring profit and loss) and obtained a performance compensation income of 90 million yuan (non recurring profit and loss); 2) The company received a government subsidy of 16 million yuan.
The gross profit margin of MIM increased by 2.91pct year-on-year in 21 years, and the comprehensive gross profit margin decreased year-on-year due to the change of product structure. In the 21st year, the gross profit margin of the company was 25.93% (YoY: – 1.94pct), of which the gross profit margin of 4q21 was 29.98% (YoY: – 2.13pct, QoQ: – 1.10pct). The year-on-year decline was mainly due to the consolidation of antxin TWS business with relatively low gross profit margin. In the 21st year, the gross profit margin of MIM parts and components, the company’s traditional main business, increased by 2.91pct to 30.02% year-on-year. During the 21 years, the company’s expense rate decreased by 1.19 PCT to 17.42% year-on-year, of which the sales expense rate decreased by 0.26 PCT to 2.00% year-on-year; The rate of administrative expenses was basically flat year-on-year; The R & D expense ratio decreased by 2.23 PCT to 7.31% year-on-year, and the financial expense ratio increased by 1.26 PCT to 1.40% year-on-year.
MIM’s revenue grew steadily and actively developed new businesses of TWS headphones, transmission and heat dissipation. In terms of business, the revenue of MIM products was 1.887 billion yuan (YoY: 29.2%) and the gross profit margin was 30.02% (YoY: 2.91pct) in 21 years, mainly due to the rise of folding screen mobile phones and the rapid development of wearable devices such as smart watches and TWS headphones. In 21 years, the revenue of terminal products (mainly antxin TWS headset business) was 376 million yuan, with a gross profit margin of 6.56%. With the gradual optimization of procurement and production management, antxin is expected to turn losses into profits in 22 years. In 21 years, the revenue of transmission, heat dissipation and other products was 101 million yuan (YoY: 19.8%), and the gross profit margin was 17.18%.
Folding screen has become the main theme of 3C innovation, and the company’s MIM and transmission business is expected to fully benefit. According to DSCC data, the global shipment of folding screen mobile phones increased by 254% year-on-year to 7.98 million in 21 years. It is expected that the shipment in 22 years will increase by 123% year-on-year to 17.77 million, and the shipment in 26 years is expected to reach 54.68 million (CAGR in 21-26 years is 47%). According to the report of science and Innovation Board daily, the hinge cost of oppofindn released in December 21 exceeded 600 yuan, and the hinge cost of vivo fold to be released in April 22 exceeded 1200 yuan. The company is the core supplier of folding screen hinge MIM parts of Samsung and Huawei, and actively cooperates with customers to expand in the direction of rotating shaft components. From the perspective of volume and price, the revenue of folding screen related business has great growth flexibility.
Investment suggestion: we are optimistic about the growth elasticity of the company’s performance under the background of the rapid penetration of folding screen mobile phones. It is expected that the company’s net profit attributable to the parent company in 22-24 years will increase by 80.2% / 41.8% / 23.8% to RMB 331 / 470 / 582 million year-on-year. Referring to the consistent expected average value of wind in 22 years, 17.61 times of PE valuation will be given to the company’s expected PE in 22 years, with the corresponding target price of RMB 51.48-54.51, maintaining the “buy” rating.
Risk tip: the downstream demand is less than expected, the sales of folding screen mobile phones are less than expected, and the industry competition is intensified.
