\u3000\u3 Guocheng Mining Co.Ltd(000688) 636 Chengdu Zhimingda Electronics Co.Ltd(688636) )
Event:
The company issued the 2021 annual report after the closing on April 7, 2022.
Comments:
Airborne and missile borne products achieved rapid development, and the net profit attributable to the parent company increased by 30.30% year-on-year
In 2021, the company achieved a total operating revenue of 449 million yuan, a year-on-year increase of 38.43%; At the end of the year, the number of orders (including oral orders) increased by 1.75 billion yuan, a year-on-year increase of 1.75%; 167 new R & D projects were obtained, with a year-on-year increase of 45%. In terms of products, the revenue of airborne products was 299 million yuan, a year-on-year increase of 56.50%; The revenue of missile borne products was 64 million yuan, a year-on-year increase of 138.46%; The revenue of on-board products was 42 million yuan, a year-on-year decrease of 16.68%; The revenue of Shipborne products was 06 million yuan, a year-on-year decrease of 78.74%; The revenue from other products was 38 million yuan, a year-on-year increase of 41.78%. The net profit attributable to the parent company was 112 million yuan, a year-on-year increase of 30.30%; The net profit deducted from non parent company was 101 million yuan, with a year-on-year increase of 20.49%; Excluding the impact of share based payment expenses, the net profit deducted from non parent company was 124 million yuan, with a year-on-year increase of 46.92%.
Continue to follow the new direction and new technology trend of the industry, and actively carry out multi-directional development and innovation
In 2021, the company’s R & D expenditure was 95 million yuan, a year-on-year increase of 68.39%, the number of R & D personnel increased by 65, a year-on-year increase of 28.51%, the salary increased by 40.84% year-on-year, and the total proportion of R & D salary in R & D expenditure reached 69.51%. On the basis of continuously improving product quality and technical maturity, the company actively carries out localization pre research, so as to lay a solid foundation for the consistency control of product technical quality system, the stability of raw material supply chain in the whole product life cycle and the leading of national chemical products in China. The company has successfully realized the comprehensive independent control of components, raw materials, software operating system and other directions, and has realized batch application in multiple models of equipment. In the direction of artificial intelligence, the company adopts machine vision and deep learning technology to realize high-performance and intelligent image processing on domestic GPU and ASIC customized chips; In the direction of communication switching, the company has successfully developed pcie-rapidio high-speed protocol conversion IP. Compared with traditional imported ASIC chips, this technology has significant improvements in power consumption, transmission rate and cost.
The capital increase of mingkesi micro will help strengthen its technical advantages in the field of high-speed and high-precision ADC
In September 2021, the company issued the announcement on foreign investment, and planned to pay RMB 178 million in cash to increase the capital of Chengdu mingkesi Microelectronics Technology Co., Ltd. after the capital increase, the company obtained 34.99% of its equity and became the single major shareholder of mingkesi. Mingkesi micro is a semiconductor integrated circuit design enterprise. Based on the design and development of high-speed and high-precision ADC, its business is positioned to cover ADC, silicon-based RF and high-performance power chip and provide application solutions. It has independent and controllable design ability. As the core subdivision field of analog circuit, ADC chip is still in the blue ocean market and has great development potential. This capital increase will help the company strengthen its technical advantages in the field of high-speed and high-precision ADC and accelerate the pace of localization.
Profit forecast and investment suggestions
The company focuses on the field of embedded computers. With the continuous development of China’s military information industry, there is a broad growth space in the future. It is predicted that the operating revenue of the company from 2022 to 2024 will be 651, 912 and 1236 million yuan, the net profit attributable to the parent company will be 151, 235 and 346 million yuan, the EPS will be 300, 4.66 and 6.88 yuan / share, and the corresponding PE will be 29.07, 18.71 and 12.68 times. Since its listing, the PE of the company has mainly operated between 35-75 times. Considering the growth of the company and the recent valuation level of the capital market, the target PE of the company in 2022 has been adjusted to 50 times, and the corresponding target price is 150.00 yuan. Maintain the “buy” rating.
Risk tips
Covid-19 recurrent pneumonia; Changes in national defense policies and military budgets; High customer concentration; Product development is not as expected; Accounts receivable account for a large proportion; Military audit pricing of military products has an impact on business performance.
