\u3000\u3 China Vanke Co.Ltd(000002) 179 Avic Jonhon Optronic Technology Co.Ltd(002179) )
Event: the company issued the 2021 annual report and related party transaction announcement, and achieved a revenue of 12.87 billion yuan, yoy + 24.9%; The net profit attributable to the parent company was 1.99 billion yuan, yoy + 38.4%; Deduct non net profit of RMB 1.91 billion, yoy + 38.8%. The company's annual performance is consistent with the previous performance express data and basically meets the market expectations.
Deeply cultivate the main business of connectors, which is relatively balanced between quarters. In a single quarter, the company achieved revenue of RMB 3.39 billion, RMB 3.28 billion, RMB 3.21 billion and RMB 2.99 billion respectively from 2021q1 to q4:1, yoy + 88%, + 9%, + 13% and + 13%; 2) The net profit attributable to the parent company was 620 million yuan, 490 million yuan, 510 million yuan and 370 million yuan respectively, yoy + 281%, - 2%, + 17%, + 8%; 3) The gross profit margin of a single quarter is between 33.0% and 41.4%; The net interest rate is between 13.4% and 19.5%. In terms of products, the company's 2021: 1) electric connectors and integrated components achieved a revenue of 9.56 billion yuan, yoy + 23.8%, accounting for 74.3% of the total revenue, and the gross profit margin increased by 0.03ppt to 41.0% year-on-year; 2) The revenue of optical devices and photoelectric equipment was 2.6 billion yuan, yoy + 22.9%, accounting for 20.2% of the total revenue, and the gross profit margin increased by 4.7ppt to 23.8% year-on-year. The output of connector industry is 680 million, yoy + 16.0%; The sales volume is 650 million, yoy + 15.9%, and the average annual production and sales rate in recent five years is more than 96%.
R & D investment continued to increase. The company's expense rate during 2021 was 19.9%, with a year-on-year increase of 0.31ppt, which was relatively stable as a whole. Specifically: 1) the sales cost is 370 million yuan, yoy + 11.9%, which is caused by the company's increasing market development; 2) The management cost was 830 million yuan, yoy + 31.8%, which was caused by the increase of employee salary and repair cost; 3) The R & D cost is 1.31 billion yuan, yoy + 35.7%. The R & D expense rate is 10.15%, which has been maintained at about 10% for five consecutive years, reflecting the company's emphasis on scientific and technological innovation and helping to enhance its leading role in industrial upgrading.
Receivables, inventories, contract liabilities and related sales increased significantly, reflecting the booming demand. By the end of 2021, the company had: 1) accounts receivable and bills were 9.33 billion yuan, an increase of 10.2% over the beginning of the year; The inventory was 4.73 billion yuan, an increase of 69.4% over the beginning of the year, which was due to the sufficient production plan of the enterprise and the increase in the inventory of products, products in process and raw materials; 2) Contract liabilities were 1.03 billion yuan, an increase of 246.0% over the beginning of the year, and the number of orders on hand for aerospace products increased; 3) The net cash flow from operating activities was 2.06 billion yuan, yoy + 62.7%, and the collection became better, and we expect this trend to continue; 4) The total assets were 26.99 billion yuan, an increase of 40.4% over the beginning of the year, which was caused by the purchase and construction of fixed assets in the construction of industrial base projects. 5) The company expects the related sales of 2.675 billion yuan in 22 years, yoy + 37.5%.
Investment suggestion: the company is a leading enterprise in China's special connectors. In 2021, the company rose to 12th place in the global bishop professional ranking and 8th place in China's electronic components ranking, highlighting its leading position. The construction of new production capacity such as South China base is smooth. We expect the net profit attributable to the parent company from 2022 to 2024 to be RMB 2.605 billion, RMB 3.459 billion and RMB 4.565 billion respectively. The current share price corresponds to PE of 35x / 27x / 20x from 2022 to 2024. Taking into account the high prosperity in special fields and the company's progress in new energy, communication and other fields, we give 40 times PE in 2022, EPS in 2022 is 2.29 yuan / share, and the corresponding target price is 91.77 yuan. Maintain a "recommended" rating.
Risk warning: the order is not delivered in time; Downstream demand is lower than expected; Independent innovation risk, etc.
