\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 584 Jcet Group Co.Ltd(600584) )
Event: the company released its annual report for 2021, and achieved an operating revenue of 30.502 billion yuan in 2021, with a year-on-year increase of 15.26%; The net profit attributable to the shareholders of the listed company was 2.959 billion yuan, a year-on-year increase of 126.83%; The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was 2.487 billion yuan, a year-on-year increase of 161.22%.
In the single quarter of Q4, the operating revenue of Q4 was 8.585 billion yuan, an increase of 11.48% year-on-year and 6.00% month on month; The net profit attributable to the parent company was 843 million yuan, with a year-on-year increase of 56.08%, a month on month increase of 6.31%, a gross profit margin of 19.84%, and a month on month increase of 1.04pct. Since 20q4, the company’s gross profit margin has increased for several consecutive quarters.
Substantial improvement in profitability and abundant operating cash flow: the company’s revenue in 2021 increased by 15.26% year-on-year, mainly due to the high prosperity of semiconductors and strong order demand from international and Chinese customers. In terms of profitability, the company’s net profit attributable to the parent company increased significantly, with gross profit margin and net profit margin of 18.41% and 9.71% respectively, up 2.95pct and 4.78pct respectively year-on-year. The company’s profitability increased significantly, mainly due to the continuous increase of cost control and operating expense control in various factories, which comprehensively promoted the improvement of profitability. In terms of revenue structure, the company’s revenue is divided by market application fields. In 2021, the company’s revenue accounted for 40.0% of communication electronics, 33.8% of consumer electronics, 13.2% of computing electronics, 10.3% of industrial and medical electronics and 2.6% of automotive electronics. From the perspective of the company’s cash flow, the company’s net operating cash flow in 2021 was RMB 7.429 billion, with a year-on-year increase of 36.69%, which was much higher than the parent net profit of RMB 2.959 billion and capital expenditure of RMB 4.358 billion in the same period, demonstrating the company’s high profit quality and capacity to expand production against the trend. From the perspective of asset liability ratio, the company’s asset liability ratio at the end of 2021 was 43.39%, with a year-on-year and month on month decrease of 15.13pct and 2.03pct respectively, and the debt ratio showed a continuous downward trend.
5g, automotive electronics, high-performance computing and other fields contribute to the sustainable growth of the company: the company is the global leader in semiconductor packaging and testing, with leading technical strength. It continues to make efforts in 5g, automotive electronics, high-performance computing and other fields, and launches technologically leading products to help the company grow continuously and high. In the field of 5g communication application market, Xingke Jinpeng has accumulated more than ten years of experience in large FCBGA packaging and testing technology, which has been widely recognized by customers and has the ability from 12X12MM to 67.5×67 5mm full-size FCBGA product engineering and mass production capacity, and passed the certification of 77.5×77 5mm FCBGA test products, and is working with customers to develop larger packaging products, such as technology close to 100x100mm. In the field of 5g mobile terminals, the company has laid out high-density system level packaging SIP technology, cooperated with a number of international high-end customers to complete the development and mass production of a number of 5g RF modules, and the product performance and yield are ahead of international competitors. In automotive electronics, the company’s product types cover many applications such as intelligent cockpit, ADAS, sensors and power devices. And the Chinese mainland has completed the IGBT packaging business layout, and has the packaging and testing power of silicon carbide (SiC) and gallium nitride (GaN) chips. At present, the third generation semiconductor sealing products are being shipped in the vehicle charging piles. In the field of semiconductor storage market, the company’s packaging and testing services cover DRAM, flash and other memory chip products. Xingke Jinpeng factory has more than 20 years of experience in mass production of memory packaging. In the field of high-performance computing, the company has launched xdfoi ™ A full range of products to provide global customers with industry-leading ultra-high-density heterogeneous integration solutions.
The advanced packaging market continues to expand, and the long-term growth momentum of the company is sufficient: with the evolution of Moore’s law, advanced packaging has become an important way to reduce the size and improve the performance of chips. Applications including 5g, Internet of things, automotive electronics and high-performance computing continue to require the refinement of chip technology, and also continue to promote higher-end packaging technology. Compared with traditional packaging, advanced packaging technology has high efficiency and can achieve better cost performance. According to yole’s data, the global market scale of advanced packaging was US $30.4 billion in 2020, accounting for 45% of the global packaging market; It is estimated that the global market scale of advanced packaging will be about US $47.5 billion in 2026, accounting for 50%, and the CAGR of the global advanced packaging market will be about 7.7% from 2020 to 2026. The company has a comprehensive layout of advanced packaging. In recent years, it has focused on developing advanced packaging technologies such as system level (SIP), wafer level and 2.5d/3d, and achieved large-scale production. It has industry-leading advanced packaging technologies in important fields such as 5g communication, high-performance computing, consumer, automobile and industry, and is expected to continue to benefit from the high growth dividend of advanced packaging.
Investment suggestion: we expect the company’s revenue from 2022 to 2024 to be 34.910 billion yuan, 39.529 billion yuan and 43.679 billion yuan respectively, and the net profit attributable to the parent company to be 3.311 billion yuan, 3.888 billion yuan and 4.266 billion yuan respectively, maintaining the “Buy-A” investment rating.
Risk warning: downstream demand attenuation risk, market competition risk, raw material price rise risk, and the risk that the production capacity is not up to expectations.
