\u3000\u30 Beijing Telesound Electronics Co.Ltd(003004) 16 Suzhou Sushi Testing Group Co.Ltd(300416) )
Event: the company released its 2021 annual report, and achieved an operating revenue of 1.502 billion yuan, a year-on-year increase of 26.74%, including 532 million yuan of test equipment revenue, a year-on-year increase of 23.45%; The revenue from environmental and reliability test services was 656 million yuan, a year-on-year increase of 41.69%; IC Verification and analysis service revenue was 219 million yuan, a year-on-year increase of 28.37%. The net profit attributable to the parent company was 190 million yuan, a year-on-year increase of 53.98%; After non deduction, the net profit was 169 million yuan, an increase of 66.64% year-on-year. The main reasons for the improvement of performance are the rapid growth of comprehensive environmental test equipment and environmental reliability test service business, the further increase of the proportion of test service business in the main business income, and the significant improvement of the profitability of IC Verification and analysis service business.
Comments:
The revenues of the three businesses were improved, and the profit growth was accelerated by the test service business: in terms of revenue, the three businesses were improved, and the growth rate of the test service business was the highest, 41.69%. In terms of gross profit margin, the gross profit margin of the test service business has remained at 57% – 60% since 2018, and the gross profit margin of the test equipment manufacturing business has remained at 33% – 38% since 2018. The test service business is significantly higher than the equipment manufacturing business. With the continuous expansion of the company’s experimental service business, it has developed into the company’s largest main business, and its operating revenue has increased in the proportion of the main business, further improving the company’s profitability.
Orderly expansion of production capacity and advance layout planning for follow-up development: in 2020, the company will build the North testing center project with its subsidiary Qingdao Guangbo as the main body, and the Wuhan laboratory project with Suzhou Suzhou test Guangbo Wuhan Branch as the main body, so as to strengthen the test services such as structural strength in North China and the technical level of vehicle environment and reliability test services in Central China. In 2021, we will focus on the expansion of Suzhou and Beijing laboratories, expand test equipment, further improve the company’s test service capabilities in integrated circuit material analysis, component failure analysis, component reliability verification analysis and component performance test, improve the efficiency of test service, and support the growth of the company’s test service business in the future.
Profit forecast, valuation and rating: according to the development trend of each business of the company and the construction planning of each laboratory, we believe that the proportion of revenue from test service business with high profit level of the company is expected to continue to increase, and the profitability of integrated circuit business is expected to continue to improve. The company raised its profit forecast from 2022 to 2023 by 11.52% / 13.68% to 269 million yuan / 356 million yuan, and predicted a profit of 446 million yuan in 2024, with EPS of 0.95, 1.25 and 1.57 yuan respectively from 2022 to 2024, and the corresponding PE of the current stock price is 32x, 24x and 19x respectively. At present, the company has formed a development situation of deep integration of equipment manufacturing and testing services and two wheel drive, and is optimistic about the rising space of the company’s performance and valuation. Maintain the company’s “buy” rating.
Risk warning: the risk of intensified market competition in the testing industry; Management risks caused by the continuous expansion of business scale; Risks of changes in industrial policies.
