\u3000\u3 China Vanke Co.Ltd(000002) 180 Ninestar Corporation(002180) )
Event: the company issued the announcement on the share repurchase plan of the company, which plans to use its own funds to repurchase the A-share shares issued by the company in the form of centralized bidding transaction for the implementation of employee stock ownership plan or equity incentive.
The consolidated table “bentu” significantly thickened the performance, and large repurchase was used to encourage and highlight the management’s confidence in long-term development. 1) Ninestar Corporation(002180) focuses on the printing industry for more than 20 years and has become the fourth laser printer manufacturer in the world. The business covers the whole industrial chain of “printer + consumables + chip”, and builds composite protection barriers upstream and downstream. It is not only a domestic printing leader with core technology, but also an industry-leading integrated circuit chip design enterprise. 2) According to the performance express, the company expects to achieve an operating revenue of 22.792 billion yuan in 2021, with a year-on-year increase of 7.94%, and the net profit attributable to the parent company is 1.163 billion yuan (including the net profit of bentu from January to September 2021 and 100% of the net profit from October to December 2021), with a year-on-year increase of 701.22% (after retroactive adjustment). Bentu 2021q4 has significantly thickened the performance after consolidation. 3) The total amount of funds for this share repurchase shall not be less than RMB 200 million (inclusive) and not more than RMB 400 million (inclusive), and the repurchase price shall not exceed RMB 63.00/share (inclusive). The specific total amount of repurchase funds shall be subject to the total amount of funds actually used at the end of the repurchase. The term of this repurchase shall not exceed 12 months from the date when the board of directors deliberates and approves the share repurchase plan. On the basis of considering the operation, business development prospect, financial status and future profitability, the company plans to buy back the company’s shares with its own funds, which will be used to implement the company’s employee stock ownership plan or equity incentive, demonstrating the company’s confidence in the future development prospect and high recognition of the company’s value.
Three dimensional brand, product force driven, market share first, or the successful practice of China’s high-end manufacturing in the printer industry. 1) The printer business of the company has realized the dual brand collaboration of “bentu + Lexmark”, and started a new journey to build a world leading original printer brand.
2) from the perspective of information security and product cost performance, domestic printer replacement is an inevitable trend. As the leader of domestic printers, bentu has won many important information innovation projects, and the sales volume and reputation in the consumer market continue to improve. 3) Facing the medium and high-end market, Lexmark will form a comprehensive product line with bentu, and give full play to strong synergy with the accumulation of Lexmark’s technology, supply chain and sales network. 4) China’s high-end manufacturing has formed global competitiveness in many fields. Based on three-dimensional brand, driven by product power and market share, the company may become another successful practice in the printer industry.
With the combination of original packaging and compatible consumables, there is huge room for the upgrading of long-term profit model. 1) As a high-frequency consumable, printing consumables can bring continuous performance support to printer manufacturers. In fiscal year 2021, HP printer business achieved revenue of USD 20.128 billion, including consumables revenue of USD 12.632 billion, accounting for 62.76%, becoming the main source of HP printing business revenue. In 2021, the global consumables market reached 140 billion US dollars. 2) Refer to the profit model of overseas printing giants and drive the sales of original consumables (with high gross profit margin) through printer shipment. With the increase of the company’s share in the global market, the original consumables business will realize the upgrading of long-term profit model. 3) The company ranks first in the global market share of compatible consumables, and the patent layout continues to deepen, consolidating its competitive barriers.
Break through the key technology of printer chip and build a long-term moat and the second growth curve. 1) The company has successfully developed a variety of printer main control SOC chips and consumables chips, so as to get rid of the dependence of printer core components on foreign manufacturers and improve information security and supply chain security. 2) Aipaike microelectronics has more than 20 years of experience in integrated circuit chip design, has the independent research and development ability of general MCU and Internet of things security chip, and has undertaken major national nuclear High-based projects. In 2021, the company not only launched new chip products in the printing industry, but also actively expanded new energy, industrial control, automobile and other industries, and reached stable cooperation with well-known manufacturers (KONE elevator, Huichuan, Changhong, Midea, SAIC Wuling, Xiaopeng, great wall, etc.) to realize mass supply. In terms of MCU products, polar semiconductor launched more than 10 new 32-bit MCU products in 2021.
Maintain the “buy” rating. We predict that the total operating revenue of the company from 2021 to 2023 will be 22.790/28.517/35.847 billion yuan, and the net profit attributable to the parent company will be 1.165/20.39/2.928 billion yuan. Maintain the “buy” rating.
Risk tip: the printing business demand is less than expected; Exchange rate fluctuation risk; Goodwill impairment risk.
