\u3000\u3 Shengda Resources Co.Ltd(000603) 380 Suzhou Etron Technologies Co.Ltd(603380) )
The net profit attributable to the parent company in 21 years increased by 37.3% year-on-year to 227 million yuan, and the revenue of 4q21 reached a new high in a single quarter. The company released an annual report, with a revenue of 1.752 billion yuan (YoY: 35.9%) in 21 years, corresponding to a revenue of 539 million yuan (YoY: 52.1%, QoQ: 19.2%), a record high in a single quarter; The net profit attributable to the parent company in 21 years was 227 million yuan (YoY: 37.3%), and the net profit attributable to the parent company after deduction was 210 million yuan (YoY: 45.4%), corresponding to the net profit attributable to the parent company of 4q21 was 57.42 million yuan (YoY: 22.5%, QoQ: - 7.4%). The high performance growth is due to the development of high-quality customers and the growth of product types in medical, industrial control and other fields. By the end of 2021, the number of customers of the company had exceeded 270 (58 new customers year-on-year), and the production involved more than 5000 kinds of products and 60000 kinds of raw materials.
In the 21st year, the gross profit margin increased by 1.58pct year-on-year, and the company further promoted cost reduction and efficiency increase. In the 21st year, the company's gross profit margin was 27.78% (YoY: + 1.58pct), of which the gross profit margin of 4q21 was 25.21% (YoY: + 1.57pct, QoQ: - 3.34pct). The year-on-year increase in gross profit margin was due to: 1) actively promoting and certifying alternative materials, reducing the cost of raw materials and improving customer satisfaction on the premise of ensuring delivery time; 2) Through the technical transformation of some equipment or production lines, the production efficiency has been improved. During the 21 years, the company's expense rate was 10.68% (YoY: + 0.29pct), of which the R & D expense rate increased by 0.34pct to 4.50% year-on-year.
The revenue of medical electronics and industrial control products increased rapidly in 21 years. In terms of products, the revenue of communication in 21 years was 307 million yuan (YoY: 25.1%), and the gross profit margin was 35.15% (YoY: + 6.69pct); The revenue of industrial control is 729 million yuan (YoY: 35.7%), and the gross profit margin is 24.70% (YoY: - 2.72pct). The year-on-year decline of gross profit margin is mainly due to the rise in the price of raw materials and the price difference of spot procurement confirmed by customers; The revenue of consumer electronics is 100 million yuan (YoY: 28.1%), and the gross profit margin is 21.11% (YoY: + 1.85pct); The revenue of medical electronics was 331 million yuan (YoY: 59.2%), and the gross profit margin was 32.41% (YoY: + 2.96pct). The growth was due to the increase of orders from Shanghai Lianying, Beckman and other customers; The revenue of automotive electronics is 255 million yuan (YoY: 24.5%), and the gross profit margin is 25.31% (YoY: + 5.14pct).
Investment suggestion: highlight the advantages of differentiated strategic positioning and maintain the "buy" rating.
With the trend of "electronics +" gradually expanding the downstream space of the electronic industry, and the relatively high-end niche markets such as automobile, industrial control and medical equipment begin to accelerate localization, we are optimistic that the company will emerge as a new force in the EMS industry through the differentiation strategy of high-quality customers and high-quality orders. In addition, the first phase (53000 square meters) of the second phase plant of the company's "high-end electronic manufacturing expansion project" is expected to be put into use in July 2022. The second phase (about 120000 square meters) is also under planning and design, and the company's order undertaking capacity will be further enhanced.
We expect the company's net profit attributable to the parent company in 22 / 23 / 24 to increase by 37.3% / 27.6% / 22.6% year-on-year to 3.12/3.98/488 billion yuan. Referring to the 22-year comparable company wind's consistent expected average of 17.58 times PE, we give the company 20-21 times expected PE in 22 years, and the target price is 38.64-40.57 yuan, maintaining the buy rating.
Risk warning: the demand is less than expected; Capacity release is less than expected; Customer development is not as good as expected.
