\u3000\u3 Guocheng Mining Co.Ltd(000688) 516 Wuxi Autowell Technology Co.Ltd(688516) )
Performance in 2021: a year-on-year increase of 129%; High profitability and 77% year-on-year increase in orders on hand
1) performance in 2021: revenue of 2.05 billion yuan, a year-on-year increase of 79%; The net profit attributable to the parent company was 355 million yuan, a year-on-year increase of 129%.
2) revenue structure: photovoltaic equipment accounts for 84% (mainly module series welding equipment, which will be sold 1144 sets in 2021, which is expected to correspond to about 114143gw, maintaining a high market share), lithium battery equipment accounts for 5%, and transformation and other businesses account for 11%.
3) significant improvement in profitability: gross profit margin of 37.7%, year-on-year + 1.6pct, net profit margin of 18%, year-on-year + 4.4pct, mainly due to the optimization of period expense rate and the reduction of credit impairment loss. In Q4 of 2021 alone, the gross profit rate was 37%, quarter on quarter -1pct, and the net profit rate was 23.3%, quarter on quarter +7pct, mainly due to the optimization of the period expense rate, the deduction of deferred income tax assets, and the appreciation of foreign investment.
4) substantial increase in R & D Investment: in 2021, R & D expenses reached 150 million yuan, accounting for 7.1% of revenue, with a year-on-year increase of 108%.
5) orders on hand: by the end of the fourth quarter of 2021, the company’s orders on hand had reached 4.26 billion yuan, a year-on-year increase of 77%. New orders signed in the whole year were 4.28 billion yuan, an increase of 61% year-on-year. Among them, the newly signed orders in Q4 of 2021 were 1.42 billion yuan, a year-on-year increase of 61%.
6) core highlights of the company’s business in 2021: component equipment: the company’s smbb series welding machine won orders from Jingke and Huasheng, meeting the demand for significant cost reduction of hjt and TOPCON components. Battery equipment: the company obtained large orders for sintering and annealing integrated furnace (light injection). Silicon wafer equipment: the company’s single crystal furnace has obtained the disclosed order, and the construction of n-type single crystal furnace is smooth. Semiconductor equipment: the bonding machine has obtained Tongfu Microelectronics Co.Ltd(002156) batch orders from downstream head customers. Lithium battery equipment: the lithium battery module / pack production line has obtained a single order for the first time, with an amount of more than 100 million yuan.
Semiconductor bonding machine: obtained Tongfu Microelectronics Co.Ltd(002156) batch order; Domestic substitution space is broad, and it is expected to rebuild a Wuxi Autowell Technology Co.Ltd(688516)
1) according to the official WeChat official account. The company obtained the order of Tongfu Microelectronics Co.Ltd(002156) sub batch aluminum wire bonding machine Tongfu Microelectronics Co.Ltd(002156) is the first batch of trial customers of the company. After more than one year’s test and verification, the company’s products have reached the level of similar foreign equipment in key technical indicators such as production capacity, precision, yield, productivity and stability.
2) previously, in November 2021, the company had received the first batch of equipment orders from Wuxi delixin (the first trial customer). This time, the company’s head customer of semiconductor packaging and testing ( Tongfu Microelectronics Co.Ltd(002156) is the world’s fifth largest semiconductor packaging and testing factory) has been recognized and won batch orders. It is expected that the company’s bonding machine business is expected to accelerate in the future.
3) market space: according to the data of China’s customs, the import volume of China’s semiconductor bonding machine in 2021 is about US $1.6 billion (about 10 billion yuan), which is more than twice the market space of photovoltaic series welding machine. The company is the first import substitution company in China. If it goes well, it is expected to rebuild a Wuxi Autowell Technology Co.Ltd(688516) .
Investment suggestion: optimistic about the company’s performance in the field of photovoltaic, semiconductor and lithium battery equipment in the next five years. It is expected that the company’s net profit attributable to the parent company will reach 560 / 750 / 920 million yuan from 2022 to 2024, with a year-on-year increase of 50% / 34% / 23%, corresponding to 33 / 24 / 20 times of PE. Maintain the “buy” rating.
Risk warning: the downstream expansion of photovoltaic production is less than expected; R & D Progress of semiconductor equipment is lower than expected
