\u3000\u3 Guocheng Mining Co.Ltd(000688) 200 Beijing Huafeng Test & Control Technology Co.Ltd(688200) )
China’s test equipment leader, with high growth in the first quarter, maintained the “buy” rating
On April 18, 2022, the company released the first quarterly report of 2022. In Q1, 2022, the operating revenue was 259 million yuan, a year-on-year increase of + 124.05% and a month on month increase of + 7.65%; The net profit attributable to the parent company was 122 million yuan, with a year-on-year increase of + 355.74% and a month on month increase of – 4.22%; The non net profit deducted was 122 million yuan, a year-on-year increase of + 195.19% and a month on month increase of + 5.64%. In 2022q1, the company’s contract liabilities were 124 million yuan, a year-on-year increase of + 50.88%, indicating that the company has sufficient orders on hand. The prosperity of semiconductor industry is relatively high. Downstream manufacturers actively expand production to stimulate the demand for equipment, superimpose the urgent demand for domestic substitutes, and the company has sufficient growth momentum. We maintain the profit forecast for 20222024. The net profit attributable to parent company in 20222024 is expected to be RMB 608 / 824 / 1058 million, EPS is expected to be RMB 9.91/13.44/17.25, and the current share price corresponds to PE of 40.1 / 29.6 / 23.0 times, maintaining the “buy” rating.
Strong downstream demand, the company attaches importance to R & D, capacity expansion and sufficient growth momentum
According to the disclosure in the annual reports of Tongfu Microelectronics Co.Ltd(002156) , Jcet Group Co.Ltd(600584) and Jcet Group Co.Ltd(600584) , the two companies’ capital expenditure in 2022 is expected to be 6.8 billion yuan and 6 billion yuan respectively, both of which have maintained year-on-year growth and high level. We judge that the demand for test equipment remains strong. The company continued to increase R & D investment, jointly build joint laboratories and set up post doctoral research workstations. In 2021, the R & D cost was 94.04 million yuan, a year-on-year increase of + 59%, accounting for 11% of revenue. In 2021, a total of 47 patents were applied for, 19 of which were invention patents. In July 2021, the “Tianjin University Beijing Huafeng Test & Control Technology Co.Ltd(688200) integrated circuit equipment technology joint research center” jointly established by the company and Tianjin University was officially unveiled, providing a better talent training channel for enterprises through the mode of production, study and research. In December 2021, the company set up a “post doctoral research workstation”, which will promote more top talents to join the company and improve the company’s scientific research ability. In January 2022, the company’s Beijing R & D center was officially opened to meet the needs of the company’s R & D scale expansion. At present, the company has 133 R & D personnel, accounting for 34.28% of the total number of the company. More than 40% of the R & D personnel have graduate education, and 96.24% have bachelor’s degree or above. The company has implemented the first phase of equity incentive plan in 2021. The incentive objects are senior managers and other core members of the company, which is conducive to stimulating the enthusiasm and vitality of employees and enhancing the cohesion of the company. The company’s production capacity further expanded. In September 2021, Tianjin production base was officially put into use, and the company’s production capacity increased significantly. The company’s sales capacity was further enhanced. In 2021, a wholly-owned company in Southeast Asia was established to increase its product promotion capacity in Southeast Asia and international markets. The company has sufficient growth momentum.
Risk tip: capacity expansion is less than expected and downstream demand development is less than expected.
