\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 09 Jiangsu Gian Technology Co.Ltd(300709) )
[key points of investment]
According to the annual report of 2021 disclosed by the company, the revenue in 2021 was 2.404 billion yuan, a year-on-year increase of 53.70%, and the net profit attributable to the parent company was 184 million yuan, a year-on-year increase of 29.64%. Corresponding to the revenue of 682 million yuan in the single quarter of 2021q4, with a year-on-year increase of 51.58%. The net profit attributable to the parent company in the single quarter of Q4 was 57.91 million yuan, with a year-on-year increase of 5.43%. During the period, benefiting from the growth of orders in important major customer markets and the development of folding screen mobile phones, the business scale of the company gradually expanded. On March 31, 2021, antxin, the main smart headset business, was included in the consolidated statements, driving a large year-on-year increase in revenue.
The company has been deeply engaged in MIM industry for a long time and actively expanded MIM and related application fields. The company is deeply engaged in the MIM industry. With the industry-leading technical level, stable product quality, professional team and rapid response ability, the products have been finally applied to a large number of well-known brand customers in the field of consumer electronics and automobile, including apple, Samsung, Xiaomi, great wall, Honda, SAIC GM and so on. The company will continue to deepen the fields of smart phones, wearable devices, smart homes and automobiles, and actively grasp the development trend of the industry. In addition, the company will further accelerate the development of transmission and heat dissipation business, constantly stabilize the industry position, broaden the business scope, realize the diversification of products and business fields, and the market position is expected to be further improved in the future.
Folding screen products of major smartphone brands have been listed one after another, and the market prospect of folding screen can be expected. In the field of smart phones, folding screen phones are emerging, including Samsung, Huawei, Xiaomi, oppo, glory and other brands have launched folding screen phones to realize the combination of tablets and mobile phones. With the continuous innovation of technology and process, the folding screen mobile phone is expected to become the next generation of breakthrough design leading the industry reform, and the market prospect is expected. According to the statistics of omdia and counterpoint, the global sales volume of folding screen mobile phones is expected to be close to 18.3 million in 2022. As the core component of folding screen mobile phone, the rotating shaft has a complex structure and is composed of hundreds of precision parts, of which the most important part is MIM part. According to different folding forms, the cost of MIM parts ranges from tens to hundreds of yuan.
Continue to strengthen R & D investment and enhance the core competitiveness of products. The company continued to increase R & D investment and technological innovation. In 2021, the R & D investment was 176 million yuan, accounting for 7.31% of revenue. The company continues to carry out R & D reserves of new technologies, new materials and new processes, steadily promote key R & D projects and successfully increase the quantity, such as folding screen mobile phone shaft hinge, wearable watch case and other projects, and actively strive for the overall assembly project of folding screen mobile phone shaft. In addition to the R & D projects based on MIM technology, the R & D of the company’s non MIM products is also continuously promoted. The relevant R & D projects of the heat dissipation division and the transmission division have made some progress. Antxin has also cooperated with customers in the R & D and manufacturing of a variety of TWS Bluetooth headsets.
[investment suggestions]
With the continuous development of the internal structure of electronic equipment towards precision and miniaturization, MIM process has obvious advantages in manufacturing precision structural parts with high complexity, high precision and high strength, and the market space of MIM industry is expected to maintain a certain growth. In addition, with the listing of folding screen mobile phones of major brands, the shipment of folding screen mobile phones is expected to maintain growth. As an important part of the rotating shaft of the core component of folding screen, MIM parts will significantly benefit from the improvement of the penetration rate of folding screen mobile phones. The company is deeply engaged in the MIM industry and has leading technology advantages. In addition to the successful mass production of rotating shaft hinges, the company also actively strives for the overall assembly project of folding screen rotating shaft. It is estimated that the revenue from 2022 to 2024 will be 3.174 billion yuan, 4.234 billion yuan and 5.261 billion yuan respectively, the net profit attributable to the parent company will be 306 million yuan, 443 million yuan and 525 million yuan respectively, the corresponding EPS will be 1.97, 2.86 and 3.38 yuan / share respectively, and the corresponding current PE will be 19, 13 and 11 times respectively, so it is rated as “overweight”.
[risk tips]
The market demand is lower than expected, and the penetration rate of folding screen mobile phones is lower than expected
The promotion of new products and new businesses is less than expected
The price of upstream raw materials continued to rise
Deterioration of market competition pattern
