\u3000\u3 Guocheng Mining Co.Ltd(000688) 312 Shenzhen Yanmade Technology Inc(688312) )
Event:
In 2021, the company achieved an operating revenue of 428 million yuan, a year-on-year increase of 22.03%; The net profit attributable to the parent company was 122 million yuan, a year-on-year increase of 19.66%.
Key investment points:
The expansion of downstream application fields drives performance growth. FPC electrical signal testing is widely used downstream. At present, it is mainly concentrated in the field of consumer electronics. The original testing demand is mainly mobile phones and tablets in consumer electronics. With the rapid growth of shipments of wearable devices such as smart watches, the testing demand has increased, driving the company’s testing fixture revenue to increase by 55% year-on-year; The total operating revenue increased by 22.03% year-on-year.
R & D expenses increased by nearly 60% year-on-year, and phased progress was made in many fields. In 2021, the company’s R & D expenses were 87.427 million yuan, a year-on-year increase of 57.25%, accounting for 20.45% of the operating revenue. In the research project, FPCA back channel whole process solution (bending ict/fct test visual appearance defect test) has been recognized by mainstream customers in the industry and is in the stage of market promotion; The sample index of socket module is qualified, and small batch orders have been obtained; SIP chip automatic testing and sorting equipment is in the stage of technical scheme verification; HDI board, IC carrier board automatic test equipment and on-board FPC test equipment are in the stage of technology research and development.
Build the second headquarters to improve production capacity. The company plans to invest 392 million yuan to build the second national headquarters base in Hangzhou, covering an area of 40 mu. The service scope will cover East China and central China, make full use of the advantages of advanced equipment manufacturing industrial clusters in the Yangtze River Delta, improve the industrial chain layout and enhance the company’s production capacity.
Profit forecast and investment rating: we believe that the company has been deeply engaged in FPC testing for many years, with leading technical capability, high-quality customer resources and accelerated implementation of research projects, which is expected to bring new performance growth points; After the completion of the second headquarters base in the future, the production capacity will be significantly improved to continue to consolidate the company’s leading position in the field of FPC testing. It is estimated that the net profit attributable to the parent company in 2022, 2023 and 2024 will be 149 / 184 / 230 million yuan respectively, corresponding to 19 / 16 / 12 times of PE. It will be covered for the first time and given a “buy” rating.
The risk suggests that the growth rate of the company’s automatic test equipment is lower than expected; The R & D progress is less than expected; The progress of capacity improvement is less than expected; The progress of business expansion in new areas is less than expected; Risk of gross margin decline.
