\u3000\u3 Guocheng Mining Co.Ltd(000688) Huatai Securities Co.Ltd(601688) 601)
Core view
Net profit attributable to parent company increased by 138% in 2021. The company's annual revenue in 2021 was 774 million yuan (YoY 43%), the net profit attributable to the parent company was 159 million yuan (YoY 138%), and the net profit not attributable to the parent company was 142 million yuan (YoY 170%). Among them, the revenue of 4q21 is 200 million yuan (YoY 53%, QoQ - 3%), and the net profit attributable to the parent company is 44 million yuan (yoy271%, QoQ - 18%). In terms of profitability, the gross profit margin in the whole year of 21 increased by 9.70pct to 39%, the net profit margin increased by 8.77pct to 20.86%, the R & D rate increased by 1.11pct to 8.29%, the management rate increased by 0.80pct to 3.89%, and the sales rate decreased by 0.27pct to 4.82%. In addition, according to the performance forecast of the first quarter, the company's 1q22 achieved a net profit attributable to the parent of 58-68 million yuan (YoY 141% - 182%, qoq32% - 55%), deducting a net profit not attributable to the parent of 53-63 million yuan (YoY 148% - 195%), a quarterly high.
Actively explore the market, and the proportion of the revenue of the first largest customer decreased. The company actively carries out product and market layout, and continues to actively expand to other fields on the basis of mobile phone and wearable device market. Its products have been successfully sold to Haier, Little Swan, Hisense and other household appliance brand enterprises. At the same time, 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 consumption, industrial control and security, automobile, electric tools and so on. With the continuous development of market and customers, the proportion of the company's revenue from the largest customer continues to decline. The proportion of the largest customer reached 73.56% in 2018 and continued to drop to 41.75% in 2021 from 46.44% in 2020.
More than 12 pieces of 90nm products are produced in the upstream, and the production capacity is tight. In the case of tight upstream supply in the industry, the company not only maintains the original energy, but also actively strives for the support of adding 8-inch capacity. On the other hand, under the background of China Foundry's active research and development of new processes (such as 12 inch wafer and 90nm process) and new production lines, the company responded quickly and followed the process path to carry out research and development. Many products have adopted 12 inch wafer and 90nm process and achieved mass production. In the golden age of domestic substitution of semiconductors, the company continues to provide customers with reliable products with better performance. In the future, based on its leading market position in the mobile phone and other consumer electronics markets, the company will continue to develop a full range of high-quality power management chips and layout signal chain chips. With the increase of material number, the market share is expected to continue to improve.
Investment suggestion: customers and products expand smoothly and maintain the "buy" rating
We expect the net profit attributable to the parent company from 2022 to 2024 to be RMB 302 / 393 / 506 million (the value before 20222023 is RMB 302 / 393 million), with a year-on-year growth rate of 90 / 30 / 29%; EPS is 4.72/6.14/7.91 yuan, and the PE corresponding to the share price on April 11, 2022 is 33/25/19x respectively. The downstream demand of the company is strong, the expansion of customers and products is smooth, and the "buy" rating is maintained.
Risk warning: the research and development of new products is not as expected; Customer verification is not as expected; The demand is less than expected.
