\u3000\u3 Guocheng Mining Co.Ltd(000688) 200 Beijing Huafeng Test & Control Technology Co.Ltd(688200) )
Event:
Beijing Huafeng Test & Control Technology Co.Ltd(688200) released the annual report for 2021: in 2021, the operating revenue was 878 million yuan, with a year-on-year increase of 120.96%, the net profit attributable to the parent was 439 million yuan, with a year-on-year increase of 120.28%, and the net profit deducted from the non parent was 435 million yuan, with a year-on-year increase of 193.79%.
Key investment points:
The performance in 2021 is in line with expectations, and the leader of semiconductor test equipment continues to grow. In the single quarter of 2021q4, the company achieved an operating revenue of 241 million yuan, a year-on-year increase of 129.90%, a month on month decrease of 23%, and a net profit attributable to the parent company of 128 million yuan, a year-on-year increase of 104.31%. In terms of product splitting, in 2021, the test system achieved an operating revenue of 821 million yuan (+ 122.23%), and the accessories business achieved an operating revenue of 56 million yuan (+ 110.44%), both of which maintained a high gross profit margin of more than 80%; From the perspective of expense splitting: the sales expense rate is 8.70% (- 3.77pct), the management expense rate is 6.34% (- 3.95pct), and the financial expense rate is – 2.27% (- 0.09pct). Benefiting from the scale effect and the improvement of operation efficiency, the expense control is further optimized. The high growth of the company’s performance mainly benefits from the strong demand of the industry and the booming production and sales. According to semi’s prediction, the global semiconductor test equipment market will be US $7.79 billion in 2021, with a year-on-year increase of 29.62%. It is expected to continue to grow to US $8.17 billion in 2022. As the leader of China’s semiconductor test equipment, the company is expected to lead the continuous growth of domestic test equipment under the background of maintaining a high boom in the industry and the continuous strong demand for localization.
Based on the analog / digital analog hybrid field, GaN / SOC products open the ceiling of the company’s growth. The company continued to increase R & D investment and optimize product structure. In terms of products, the company’s Tianjin production base was officially put into operation in September 2021. In terms of R & D, the company’s R & D investment in 2021 was 94 million yuan (+ 59.03%), with remarkable R & D achievements, and 47 / 30 new patents were applied / obtained. At the same time, the company and Tianjin University jointly set up a research center and a postdoctoral research workstation, which will help to absorb more top talents and improve the enterprise’s scientific research strength; In terms of products, the production capacity of the company’s sts8200 and sts8300 series has increased significantly. By the end of 2021, the cumulative installed capacity of the company’s test system has reached 4500. Based on Simulation and digital analog mixing, the company continues to extend to the SoC Test field. The sales proportion of sts8300 series equipped with SOC test module continues to increase, which can meet the test needs of FT and CP at the same time, and greatly broaden the market space of the track where the company is located. In addition, the company established a wholly-owned subsidiary in Malaysia in November 2021. Southeast Asia, as a global semiconductor packaging and testing center, is an important destination of the company’s sea strategy, which will further enhance its global influence. The company continues to cultivate the field of semiconductor testing equipment, and will continue to optimize the product structure and open the growth ceiling based on the traditional advantageous fields. At present, the prosperity of semiconductor investment is high, and the growth momentum of the company is abundant.
As the leading enterprise of China’s semiconductor testing machine, the profit prediction and investment rating company has deeply cultivated the field of analog / digital analog hybrid chip testing machine, and arranged the fields of SOC, power semiconductor and third-generation semiconductor testing equipment. Based on the original advantageous fields, the company will continue to expand categories and expand production capacity, and will fully benefit from the continuous high outlook of the industry and the general trend of equipment localization. Considering the impact of the introduction of new products on the lengthening of the revenue recognition cycle, and the overall improvement of the company’s fundamentals has not changed, we expect the company’s net profit attributable to the parent company to be RMB 659 / 911 / 1166 million from 2022 to 2024, corresponding to EPS of RMB 10.75/14.85/19.01/share, corresponding to the current PE valuation of 43 / 31 / 24 times respectively, maintaining the “buy” rating.
Risk warning: downstream demand is less than expected risk; Risk that the R & D Progress of new products is less than expected; Supply chain Instability Risk; Upstream cost escalation risk; Exchange rate fluctuation risk.
