\u3000\u3 Shengda Resources Co.Ltd(000603) 386 Guangdong Champion Asia Electronics Co.Ltd(603386) )
The results of business integration showed that it ended smoothly in 2021 and maintained the “buy” rating
The company released its annual report for 2021, realizing an operating revenue of 2.73 billion yuan, yoy + 32.0%, net profit attributable to parent company of 210 million yuan, yoy + 72.74%, net profit deducted from non attributable to parent company of 180 million yuan, yoy + 62.3%. We maintain the previous profit forecast and add the 2024 forecast. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 3.0/4.0/550 million, yoy + 46.5% / 32.3% / 36.7%, EPS is RMB 1.30/1.72/2.35, and the current share price corresponds to PE is 11.9/9.0/6.6 times. The company’s small batch, medium batch and large batch products form a one-stop solution. The synergy between Longnan large-scale production and mutailai technology card is significant, maintaining the “buy” rating.
The gross profit margin of 2021q4 improved month on month compared with Q3, and the adjustment of product structure promoted the increase of average unit price
The operating revenue of PCB, SMT and complete machine of the company’s three businesses accounted for 92.1% / 2.2% / 1.2% respectively. Among them, the PCB business sold 3.23 million square meters, yoy + 0.3%, with an average unit price of 777.4 yuan / square meter and yoy + 25.3%. The average unit price of the company’s PCB products increased significantly. On the one hand, due to the rising cost of raw materials, the company transmitted cost pressure to the downstream. On the other hand, the company increased orders for photovoltaic energy and reduced the proportion of consumer electronics products, Promote the diversification of the company’s product structure. The company’s model and small and medium-sized batch boards grew steadily. Mutailai simulated the merger and realized an operating revenue of 510 million yuan, yoy + 29.6%, and the net profit attributable to the parent company was 72.176 million yuan, yoy + 0.6%. Mutailai has the ability of technical public relations and can drain medium batch orders and tap large batch orders from customers.
Expand application fields and focus on introducing emerging markets, and optimize the profitability of intelligent chemical plants
The company actively reserves and introduces resources from emerging markets, and the number of customers and application fields are expanded and improved. At the product application end, the products in the vehicle field are subject to sample certification or small batch production, and the soft board maintains the market segmentation advantage of lithium battery products. At the customer reserve side, a wholly-owned subsidiary was established in Japan to expand customers in Japan and Southeast Asia. The proportion of the top five customers decreased from 27.2% in 2020 to 21.9% in 2019. The company carried out technological transformation such as intelligent manufacturing in Longnan base, Jiangxi Province, and improved the professional service ability of on-board PCB through equipment upgrading and process capacity improvement. Longnan Junya is expected to form an “Internet of things + big data” intelligent factory to further optimize yield and profitability.
Risk tip: the rise in the price of upstream raw materials has led to pressure on profits, the business integration of mutailai is less than expected, and the demand for PCB has weakened.
