\u3000\u3 China Vanke Co.Ltd(000002) 938 Avary Holding (Shenzhen) Co.Limited(002938) )
Report summary
Global PCB leading enterprise, the company is developing rapidly. The company is the largest PCB manufacturer in the world. The compound growth rate of revenue from 2016 to 2021 reached 1.7%, and the compound growth rate of net profit attributable to the parent company from 2016 to 2021 reached 22%. The company has a good development trend. The company's products are mainly FPC, HDI, SLP, etc., which are widely used in communication, consumer electronics, computers, automobiles and other fields, and the downstream customers are of high quality.
The performance increased steadily in 2021, and the performance in 2022q1 was brilliant. 1) In 2021, the operating revenue reached 33.31 billion yuan, a year-on-year increase of + 11.6%; The net profit attributable to the parent company was 3.32 billion yuan, a year-on-year increase of + 16.8%; In recent years, the company has continuously strengthened the technical research and development and market development of products such as automotive electronic boards and high-speed server boards. In 2021, the growth rate of automotive, server and other boards is bright, with a year-on-year increase of 74%. It is expected that this field will become one of the important performance growth points of the company in the future. 2) The company's Q1 performance in 2022 was brilliant. The company achieved a revenue of about 7.076 billion yuan in the first quarter of 2021, with a year-on-year increase of 24%. The net profit attributable to the parent company is expected to be 579614 million yuan, with a year-on-year increase of 65% - 75%. The net profit deducted from the non parent company is expected to be 573596 million yuan, with a year-on-year increase of 150% - 160%. The high growth in 2022q1 mainly benefited from the rapid growth of mini led and MSAP products, and the company continued to carry out cost control, process improvement Strengthen automated production, reduce production costs and further improve gross profit margin.
Production capacity continues to upgrade, laying the foundation for performance growth. At the beginning of the year, the investment of huaixiong FPC in the planned expansion project of multi-layer printed circuit board has been completed, and the investment of huaixiong FPC in the planned expansion project of soft circuit board in 2021 has also been completed. In terms of module assembly, the company's Indian park has been put into production in the second half of 2021, and the second phase of Shenzhen Second Park is also advancing as planned. In terms of hard board, Qinhuangdao high-level HDI printed circuit board expansion project invested by the company has been invested in 2020; The company's Huai'an ultra-thin circuit board investment plan has been mass produced, and the production capacity is planned to be 93000 square meters / month; Huai'an comprehensive insurance park investment plan and hard board transformation investment plan are being implemented as planned. After the project is put into operation, it will help the company obtain the market opportunities brought by the rapid development of servers and automotive electronics; The intelligent manufacturing project of high-end HDI and advanced SLP carrier sectors in Huai'an new park is under construction as planned. After the completion of the project, the comprehensive competitiveness of the company in high-end HDI and SLP will be further enhanced. The company plans to spend 4.3 billion yuan of capital expenditure in 2022, which will continue to be used for the expansion of soft board, HDI board, SLP carrier board and high-end hard board capacity.
Investment suggestion: we expect the company's revenue in 20222024 to be 38.86 billion yuan, 43.47 billion yuan and 48.88 billion yuan respectively, with a year-on-year increase of 17%, 12% and 12%., The comprehensive gross profit margin is 21.71%, 22.4% and 23.1%. The net profit attributable to the parent company was 4.098 billion yuan, 4.934 billion yuan and 5.874 billion yuan respectively, with a year-on-year increase of 24%, 20% and 19%. With reference to the average valuation of comparable companies in 2022 of 18.04 times, considering the flexibility of the company's performance and the company's leading position in the industry, the company was rated as "buy" for the first time.
Risk tips: 1. The downstream demand is less than expected; 2. The new capacity is less than expected; 3. Industry competition intensifies; 4. Price fluctuation of raw materials; 5. The use information of the research report is not updated in time
