\u3000\u3 Guocheng Mining Co.Ltd(000688) 516 Wuxi Autowell Technology Co.Ltd(688516) )
Event overview
The company issued the annual report of 2021. In 2021, the company achieved an operating revenue of 2.047 billion yuan, a year-on-year increase of 78.93%; The net profit attributable to the parent company was 371 million yuan, a year-on-year increase of 138.63%; Net profit deducted from non parent company was 325 million yuan, with a year-on-year increase of 138.26%.
Analysis and judgment:
Product advantages are obvious, and the performance in 21 years exceeds the market expectation
In 2021, it mainly benefited from the capacity expansion of large-scale silicon wafers in the downstream, and the increased demand for the company’s core products, ultra-high speed large-scale series welding machine and silicon wafer sorter, which led to a significant increase in the company’s revenue of 78.93% to 2.047 billion yuan, and a significant increase in the net profit attributable to the parent company of 138.63% to 371 million yuan. Benefiting from the strengthening of the company’s cost and expense management, the company’s profitability has been further improved. In 2021, the company’s gross profit margin was 37.66%, with a year-on-year increase of 1.60pct, and the net profit margin reached 17.95%, with a significant year-on-year increase of 4.37pct. Among them, the rates of sales / management / R & D / financial expenses were 3.82% / 5.39% / 7.08% / 1% respectively, with a year-on-year increase of -0.51 / – 0.99 / + 0.98 / + 0.22pct respectively. In terms of products, the company’s photovoltaic equipment / lithium battery equipment reached RMB 1.725/96 billion respectively, with a year-on-year increase of 78.16% / 181.05% respectively; The gross profit margin was 37.50% / 24.18% respectively, and the gross profit margin changed by + 1.79 / – 2.92pct respectively.
Business blossoms at multiple points, and the order growth trend in 22 years is expected to continue
1) in 2021, the company’s large-size, ultra-high-speed multi main grid series welding machine, silicon wafer sorter, sintering and annealing integrated furnace (light injection), non-destructive dicing machine and other photovoltaic equipment were highly recognized by customers; The lithium battery module / pack production line has obtained the honeycomb module pack line order of about 130 million yuan (including tax), and the lithium battery equipment has achieved a new breakthrough; The semiconductor bonding machine has been verified and tested in multiple clients, and has obtained batch orders from Wuxi delixin semiconductor; Songci electromechanical single crystal furnace, the holding subsidiary of the company, obtained batch orders for Yuze semiconductor single crystal furnace. In 2021, the company signed sales orders of 4.281 billion yuan (including tax), a year-on-year increase of 60.52%; By the end of 2021, the company’s orders on hand were 4.256 billion yuan (including tax), a year-on-year increase of 77.41%.
2) in 2022, the company’s businesses maintained a good trend, especially the aluminum wire bonding machine. The company recently received batch orders for aluminum wire bonding machine, which fully shows that the company’s products have strong competitiveness and the strength of import substitution. In addition, the company’s photovoltaic module equipment business still maintained a good growth momentum. On February 16, it announced that it had successfully won the bid for Qujing Jingao, Hefei Jingao silicon wafer sorter and multi main grid scribing and welding conjoined machine projects. On March 15, it announced the bidding project of series welding machine and scribing machine of Shangrao project of Jingke energy (Shangrao) Co., Ltd., with the bid winning amount of about 110 million yuan and 140 million yuan respectively.
Raise funds to increase product R & D and help platform layout
The company plans to increase by 550 million yuan. The net funds raised after deducting relevant issuance expenses are intended to be used for high-end intelligent equipment R & D and industrialization projects (300 million yuan), science and technology reserve fund projects (150 million yuan) and supplementary working capital projects (100 million yuan). Among them, the products to be developed by the high-end intelligent equipment R & D and industrialization project are TOPCON battery equipment (boron diffusion equipment and LPCVD equipment), semiconductor packaging and testing core equipment (chip loader, gold copper wire bonding machine and flip chip bonding machine), and lithium battery core process equipment (lamination machine). At present, the company’s main products are multi main grid series welding machine, large-size ultra-high speed series welding machine, silicon wafer sorting machine, laser scribing machine, light injection annealing furnace and other photovoltaic equipment, module pack line and other lithium equipment and aluminum wire bonding machine. The proposed project is expected to further enhance the company’s R & D strength and core technology capabilities, and have greater synergy with the company’s existing products and customers, so as to open up growth space.
Investment advice
The company’s revenue forecast for 22-23 years remained unchanged, which were 3.298/4.371 billion yuan respectively, and the 24-year forecast was 6.071 billion yuan. Considering the further enhancement of the company’s ability in cost and expense control, the company’s net profit attributable to the parent company in 22-23 years is increased from the previous forecast of 512 / 703 million yuan to 577 / 778 million yuan, the 24-year forecast is increased by 1.090 billion yuan, and the company’s EPS 5.0 million yuan in 22-23 years is increased The forecast of 19 / 7.12 yuan is 5.85/7.89 yuan, and the 24-year forecast is 11.05 yuan, corresponding to the closing price of 185.5 yuan / share on April 15, 2022, and the PE of 22-24 years is 32 / 24 / 17 times respectively. We maintain a “buy” rating.
Risk tips
The prosperity of photovoltaic industry is lower than expected; The R & D of new products is less than expected; Industry competition intensifies; The fixed increment event has not been completed and there is uncertainty.
