\u3000\u3 Guocheng Mining Co.Ltd(000688) Huatai Securities Co.Ltd(601688) 601)
Event: the company released its annual report for 2021 and achieved an operating revenue of 770 million yuan, a year-on-year increase of 43%; The net profit attributable to the owners of the parent company was 159 million yuan, a year-on-year increase of 138%; Deduct non net profit of 142 million yuan, with a year-on-year increase of 170%. Basically consistent with the previous express, in line with expectations.
The rapid growth of revenue and structural optimization drive the increase of gross profit margin. The market demand for power management products was strong, with a revenue of 660 million yuan, a year-on-year increase of 42%. At the same time, new products were actively launched, and the sales of high-performance products increased, with a gross profit margin of 38.72%, a year-on-year increase of 9.51pct. The company continued to expand its categories, and its electronic detonator chip module, signal chain and other businesses increased rapidly. The revenue of other businesses was 110 million yuan, a year-on-year increase of 45%, and the gross profit margin was 40.87%, a year-on-year increase of 10.81 PCT.
The share of Chinese terminal customers continued to increase. Since 2010, the company has officially entered the supplier system of Samsung Electronics, competed with Ti and other international well-known enterprises in international business, and accumulated a lot of development experience. Taking the quality requirements of international customers as the criterion, the company has formed excellent R & D ability and strict quality control system, gradually formed a good market reputation, and passed the certification of mainstream consumer electronics brand suppliers such as Xiaomi and LG. With the gradual release of upstream wafer production capacity, the company's share of terminal manufacturers in China continued to increase.
Continue to expand categories and downstream applications. The company actively continues to expand categories around key customers, and the cooperation field gradually expands from mobile phones and wearable devices to home appliances, automotive electronics and other business sectors. The company strengthened the integration of industrial resources, invested abroad to acquire 64% equity of Zhejiang Qianjiang integrated circuit technology Co., Ltd., and expanded the company's product line in the fields of consumer, industrial control and security, automobile, electric tools and so on.
The policy strongly promotes the landing of electronic detonators, and the business is expected to increase rapidly. The intelligent networking delay management chip developed by the company is mainly used in digital electronic detonators and other fields. Because electronic detonators have incomparable safety and control functions compared with traditional detonators, they have high safety coefficient and low social hazard coefficient, and are more suitable for the current development trend of blasting industry. In December 2018, the Ministry of public security and the Ministry of industry and information technology issued a notice requiring electronic detonators to reach the goal of full use in 2022. With the strong promotion of the policy, the electronic detonator is expected to penetrate rapidly, and the business is expected to bring greater profit flexibility to the company.
Maintain the "buy" rating. The company's share of Chinese terminal manufacturers is growing rapidly. Focusing on key customers, the company continues to expand its product categories, and the landing of electronic detonators is expected to further accelerate. We continue to be optimistic about the company's development potential. We maintain the net profit forecast of RMB 320 / 400 million in 22-23 years and RMB 480 million in 24 years, corresponding to PE of 31 / 25 / 21x respectively. The valuation in the analog chip industry is relatively low and maintain the "buy" rating.
Risk tips: the prosperity of consumer electronics is declining, the epidemic has a negative impact on logistics, and the penetration progress of electronic detonators is lower than expected
