\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 231 Universal Scientific Industrial(Shanghai)Co.Ltd(601231) )
[key points of investment]
In 2021, the performance improved steadily, and the revenue and net profit attributable to the parent company reached a new high. According to the annual report of 2021 disclosed by the company, the revenue in 2021 was 55.3 billion yuan, a year-on-year increase of 15.94%, and the net profit attributable to the parent company was 1.858 billion yuan, a year-on-year increase of 6.81%. During the reporting period, the company’s revenue of various products increased year-on-year, and the revenue of industrial products and automotive electronic products increased by more than 50% year-on-year.
The industry has a prominent position and continues to promote the layout of globalization. According to the ranking of the global electronic manufacturing service industry, the company’s revenue ranked 12th in 2020, and the annual growth rate of revenue and operating net profit margin ranked among the top in the industry. The company is also a leading manufacturer in multiple business segments and an industry leader in SIP miniaturization technology, with a prominent industry position. The company has 27 production sites in China, Taiwan, Chinese mainland, the United States, France, Germany and other 10 countries and regions, serving the world-renowned brand customers, focusing on the global market, integrating global resources, and becoming a more internationalized operation company.
Diversified business areas and rich product portfolio. The company not only has the comprehensive strength covering the professional design, manufacturing and system assembly of electronic products such as electronic components, spare parts and complete machines, but also has the advantages of strategically selecting subdivided fields and integrating products. The company’s business covers 3C (communication, consumer, computer) products, industrial electronics, medical electronics, automotive electronics and other fields, creating a rich and balanced product matrix.
R & D drives product innovation, SIP technology leads the industry, and the new energy vehicle business is progressing smoothly. In 2021, the company invested 1.641 billion yuan in R & D. by the end of 2021, the company had 2332 R & D teams, obtained 696 patents and 173 patent applications. As a global leading manufacturer of SIP technology, in 2021, a number of advanced technologies were integrated in the SIP field, such as double-sided plastic packaging technology to realize the function of double-sided electromagnetic shielding while meeting the requirements of high integration and design flexibility. Based on the advantages of advanced technology and core process, the company has also made new breakthroughs in product innovation. It has officially mass produced the application products of electric vehicle power system, battery management system and heat dissipation system, and arranged the assembly, production and testing of power modules of power semiconductor international manufacturers. The company expects to officially mass produce IGBT and SiC Power Modules for electric vehicles in 2022.
[investment suggestions]
With the accelerated fall promotion of 5g, AI, AR / VR and other new technologies and products, as well as the accelerated growth of the demand for electronic products related to new energy intelligent vehicles and cloud infrastructure, the company, as a global well-known manufacturer in the electronic manufacturing industry, ranks at the forefront of the industry in terms of annual revenue growth rate and operating net profit margin. It has achieved an industry leading position in multiple business segments and is an industry leader in SIP miniaturization technology, It will continue to benefit from the trend of miniaturization and integration of electronic products. In addition, the company’s early layout in industrial electronics, automotive electronics and other segments, and it is expected that the future revenue scale will benefit from the sustainable development of the industry. It is estimated that the company’s revenue from 2022 to 2024 will be 62.164 billion yuan, 70.569 billion yuan and 80.913 billion yuan respectively, the net profit attributable to the parent company will be 2.232 billion yuan, 2.693 billion yuan and 3.206 billion yuan respectively, the corresponding EPS will be 1.01, 1.22 and 1.45 yuan / share respectively, and the corresponding current PE will be 12, 10 and 8 times respectively. It will be re covered and rated as “overweight”.
[risk tips]
Downstream demand is lower than expected
Deterioration of industry competition pattern
Upstream raw material prices continued to rise
