\u3000\u3 China Vanke Co.Ltd(000002) 916 Shennan Circuits Co.Ltd(002916) )
Events
In the first quarter of 2022, the company realized an operating revenue of 3.316 billion yuan, an increase of 21.68% year-on-year; The net profit attributable to the parent company was 348 million yuan, a year-on-year increase of 42.83%; The net profit attributable to the parent company after deduction was 324 million yuan, with a year-on-year increase of 58.73%.
The company’s revenue grew steadily in the first quarter and its profitability improved significantly
In 2022, Q1 company’s performance showed stable revenue growth. The net profit side, especially the net profit returned to the parent after deducting non profits, increased rapidly year-on-year. The gross profit margin rebounded significantly to 26.79%, increased by 4.26pcts month on month, and the profitability reached the highest level in recent two years. We believe that the main reasons are as follows:
① according to our model calculation, the growth rate of IC carrier business with high gross profit margin is higher than the average level of the company, and the amount and proportion Q1 of single quarter revenue are expected to reach a record high; At the same time, the proportion of PCBA business with weak profitability gradually decreased.
② the profitability of the three sectors may be improved simultaneously: after the new capacity of IC carrier board climbs, the capacity utilization rate increases, and the stable production leads to the improvement of yield; The company’s PCBA business improves its supply chain management ability and stabilizes market supply by signing forward purchase contracts and strengthening spot purchase; The automobile factory of Nantong phase III project produced by 21q4 connection gradually climbed, and the loss outlook narrowed month on month.
③ the impact of the epidemic on the company is controllable: Nantong and Wuxi factories have a slight impact on raw materials and delivered logistics, but the factories have not stopped working. At present, the impact is controllable; Shenzhen factory, which is greatly affected by the epidemic, has limited impact due to its small contribution to the overall revenue.
In the golden track, the future growth can be expected
We believe that the company, as a PCB company deeply engaged in IC carrier, data center and automobile PCB golden track at the same time, its carrier business has also shown good profitability and obvious scarcity. The company’s Wuxi phase I WB carrier is basically in full production. At the same time, it has invested 2 billion to start the construction of fc-csp of Wuxi No. 2 plant, and plans to invest 6 billion in Guangzhou to build FCBGA carrier plant with higher technical difficulty and larger market space, with huge growth space. The company’s R & D personnel increased by 21% in 2021, and the leading advantages of track technology above are expected to be further expanded in the future.
Investment advice
It is suggested that investors pay attention to the investment opportunities brought by the expansion of IC carrier board and the increase of the proportion of automobile and server PCB business. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 1.827 billion, 2.222 billion and 2.616 billion, with corresponding P / E ratios of 24, 20 and 17 times, maintaining the “buy” rating.
Risk tips
The impact of the epidemic continues, and the downstream demand is lower than expected.
