\u3000\u3 China Vanke Co.Ltd(000002) 179 Avic Jonhon Optronic Technology Co.Ltd(002179) )
Key investment points:
Avic Jonhon Optronic Technology Co.Ltd(002179) disclosed in the annual report of 2021: the company achieved an operating revenue of 12.867 billion yuan in 2021, with a year-on-year increase of 24.86%; The net profit attributable to shareholders of listed companies was 1.991 billion yuan, a year-on-year increase of 38.35%; The basic earnings per share is 1.86 yuan / share. The company's profit distribution plan for 2021 is: Based on the total share capital on the equity registration date when the company's equity distribution is implemented, a cash dividend of 5.50 yuan (including tax) will be distributed to all shareholders for every 10 shares, and 4 shares will be added to all shareholders for every 10 shares with the capital reserve.
Both military and civilian businesses are growing rapidly, and the new business of fluid dentistry is gradually developing
In 2021, the company achieved an operating revenue of 12.867 billion yuan, a year-on-year increase of 24.86%; The net profit attributable to the parent company was 1.991 billion yuan, with a year-on-year increase of 38.35%, and the performance increased rapidly. Among them, the operating revenue of Q4 in 2021 was 2.99 billion, a year-on-year increase of 13.31%, and the net profit attributable to the parent company was 368 million, a year-on-year increase of 8.27%. The main reason is that there are many deliveries of Q1, which actually realizes balanced production throughout the year. At the same time, due to the epidemic factors, the Q1 base is low and the q2-q4 product delivery base is high in 2020.
In terms of products, the operating revenue of electrical connectors and integrated components reached 9.555 billion in 2021, with a year-on-year increase of 23.78%, accounting for 74.91% of the company's main revenue, and continued to maintain the rapid growth of the main business of electrical connectors.
In 2021, the operating revenue of optical devices and photoelectric equipment reached 2.6 billion, with a year-on-year increase of 22.86%, accounting for 20.53% of the company's main revenue.
In 2021, new products such as fluids and dentistry realized an operating revenue of 712 million, with a year-on-year increase of 51.45%. The proportion of new businesses is still low, but the growth rate is fast and gradually developed.
The gross profit margin and net profit margin of the company increased significantly, and the operating cash flow and contract liabilities increased significantly
In 2021, the gross profit margin of the company's sales was 37.0%, an increase of 0.97pct year-on-year; The net interest rate was 16.52%, with a year-on-year increase of 1.66pct and deduction of non net interest rate of 14.88%, with a year-on-year increase of 1.49pct. The increase in gross profit margin was mainly due to the significant increase in gross profit margin of communication products by 4.7pct.
In 2021, the company's weighted roe was 18.22%, an increase of 2.14 PCT over last year, and its profitability improved significantly.
In 2021, the company's net operating cash flow was 2.062 billion yuan, with a year-on-year increase of 62.74%. The company's operating cash flow was good.
In the 2021 annual report, the company's contractual liabilities reached 1.03 billion, a year-on-year increase of 246%, indicating a significant increase in the company's orders.
Raising investment projects to boost future performance growth
Several times of rapid growth of the company are inseparable from capacity expansion. In 2013 and 2018, the company raised 800 million yuan and 1.3 billion yuan through fixed growth and convertible bonds respectively, which also brought about the sustained and rapid development of the company from 2014 to now.
On January 14, 2022, the company completed a fixed increase of 3.4 billion financing and invested in two projects: South China industrial base project and basic device industrial park project (phase I), with a construction period of two years. A total of 4.928 billion yuan was invested, including 1.528 billion self raised and 3.4 billion fixed increase raised. The production expansion of this round of fixed increase projects is mainly aimed at the subdivision direction of high growth such as military industry and 5g new energy vehicles. With the continuous expansion of the company's production capacity, the growth space and certainty in the future will be improved.
Profit forecast and valuation
We predict that the operating revenue of the company from 2022 to 2024 will be 16.739 billion, 20.922 billion and 25.566 billion respectively, the net profit attributable to the parent company will be 2.735 billion, 3.483 billion and 4.291 billion respectively, and the corresponding PE will be 32.66x, 25.65x and 20.82x respectively. The valuation is reasonable, which matches the performance growth of the company in the next few years. It will be covered for the first time and given a "buy" rating.
Risk tips: 1: the delivery progress of military products is less than expected; 2: The growth rate of defense expenditure budget is lower than expected; 3: Rising prices of raw materials; 4: Industry competition intensifies
