\u3000\u3 China Vanke Co.Ltd(000002) 436 Shenzhen Fastprint Circuit Tech Co.Ltd(002436) )
Event: Shenzhen Fastprint Circuit Tech Co.Ltd(002436) released the annual report express of 2021 and the performance forecast of Q1 in 2022: the operating revenue in 2021 was 5.040 billion yuan, with a year-on-year increase of 24.92%, and the net profit attributable to the parent company was 621 million yuan, with a year-on-year increase of 19.16%. The net profit attributable to the parent company in Q1 in 2022 was expected to be 180210 million yuan, with a year-on-year increase of 77.49% – 107.07%. The performance was in line with our expectations.
The operating revenue is stable, the profitability is steadily improved, and the performance contribution of IC carrier board is gradually improved: in 2021, the company’s production capacity is gradually released, driving the steady growth of the overall revenue. Among them, the demand for IC carrier board continues to be strong, the business orders are full, and the revenue is about 666 million yuan (the revenue in 2020 is 336 million yuan), with a year-on-year increase of about 98.28%, accounting for about 13.21% of the operating revenue, an increase of 4.88pp compared with 2020 (8.33%), The performance contribution increased steadily. At the same time, the expansion of PCB temsector and small batch board business has been steadily promoted, and the revenue and profit have increased year-on-year. From the perspective of operating efficiency, the net profit attributable to the parent company after deducting non profits in 2021 increased by 102.46% year-on-year. With the steady improvement of the company’s operating income, the benefits of lean production gradually appeared, the cost rate decreased, and the overall profitability steadily increased. From Q1, with the gradual release of production capacity and the steady increase of orders, the revenue of overseas subsidiary Fineline increased by 19% year-on-year. The orders of IC carrier business continued to be full, and the net profit attributable to the parent company increased rapidly. We believe that the IC carrier business has full orders, high capacity utilization and continuous capacity expansion, which will become an important driver of the company’s performance growth in the future; At the same time, the production capacity of PCB temsector and small batch board business was released steadily, driving the continuous and steady growth of overall performance.
Continue to consolidate the advantages of technology, production capacity and products, with a solid leading position: Shenzhen Fastprint Circuit Tech Co.Ltd(002436) as one of the pioneers of IC carrier in China, it laid out the IC carrier business in 2012, passed Samsung certification in September 2018, and became an official supplier of Samsung. Its technology and products are at the leading level in China. At present Shenzhen Fastprint Circuit Tech Co.Ltd(002436) plans to invest 6 billion yuan to lay out FCBGA high-end carrier to further consolidate its leading advantage. As a key raw material for chip manufacturing, IC carrier board continues to rise in industry prosperity. According to the disclosure of Shenzhen Fastprint Circuit Tech Co.Ltd(002436) 2021 interim report, the company’s 20000 m2 / month production capacity, except for the influence of the Spring Festival, is in full production, with an overall yield of 96%. The demand for orders continues to be full, and the production capacity will be released one after another. At present, the production capacity of 30000 m2 / month IC carrier board of Zhuhai Xingke is advancing in an orderly manner. We believe that the prosperity of IC carrier industry continues to improve. With the continuous release of production capacity, we continue to be optimistic about the steady growth of Shenzhen Fastprint Circuit Tech Co.Ltd(002436) performance.
Profit forecast and investment rating: according to the company’s express report data, we raised the performance expectation for 2021, and the operating revenue and net profit attributable to the parent company were increased from RMB 4.964 billion and RMB 605 million to RMB 5.040 billion and RMB 621 million respectively. It remained unchanged in 2022 and 2023, and the net profit attributable to the parent company was RMB 769 million and RMB 925 million respectively. The EPS from 2021 to 2023 were RMB 0.42, RMB 0.52 and RMB 0.62 respectively, and the corresponding PE valuation was 22.48x/18.16x/15.10x, We continue to be optimistic about the steady growth of Shenzhen Fastprint Circuit Tech Co.Ltd(002436) future performance and maintain the “buy” rating.
Risk tip: IC capacity release progress is less than expected; Industry demand was lower than expected.
