\u3000\u3 Guocheng Mining Co.Ltd(000688) 200 Beijing Huafeng Test & Control Technology Co.Ltd(688200) )
On April 18, Beijing Huafeng Test & Control Technology Co.Ltd(688200) released the first quarterly report of 22 years. The company achieved a revenue of 260 million yuan in Q1, an increase of 124.05% year on year and 7.65% month on month; The net profit attributable to the parent company was 122 million yuan, with a year-on-year increase of 355.74% and a slight decrease of 4.22% month on month.
Q1 performance continued to grow at a high rate, and the rhythm of customer acceptance lowered the apparent operation: Q1 achieved a revenue of 260 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, a year-on-year increase of 355.74% and a slight decrease of 4.22% month on month. Compared with the previously disclosed operating data from January to February, it decreased slightly in March, mainly due to the impact of the epidemic on the rhythm of customer acceptance.
As there are few non economic projects such as Q1 investment income and other income, the profit decreased slightly month on month compared with Q4. However, the company still maintains a high gross profit margin of more than 80%, reflecting the strong competitiveness of the company’s products. Looking forward to the later stage, with the upgrading of the company’s new products such as sts8300 and the starting volume of sts8200 high-power tester, the company will have a relatively certain performance.
SOC new products have exceeded expectations and opened up market space: the company’s sts8300 product 200400mhz test main frequency board has completed research and development, entered the customer verification stage, and is expected to contribute orders in 22 years; Moreover, the company’s new platform above 800MHz is also expected to be launched in 22 years, which can benchmark the terry 93k series, and is increasing the expansion of R & D personnel to promote the development of resource boards, and the customer verification time is expected to be further shortened. In the long run, with the continuous upgrading of the company’s products and the launch of new platforms, the market space faced by the company will be greatly opened.
The proportion of SOC and high-power test has increased rapidly, and the progress of customers is gratifying: from the perspective of order structure, the proportion of company design + IDM customers has been raised to more than 50%, which has been greatly weakened by the fluctuation of capital expenditure of sealed test customers in the past; And we emphasize that the company’s core growth logic mainly benefits from the rise of Chinese IC design companies. For example, the self built test projects of customers such as downstream Shengbang have significantly boosted the company’s orders.
From the perspective of product structure, 8300 products account for more than 30% of the company’s orders and high-power products account for more than 20%, which fully verifies the Growth Logic of the company’s new products, and the value of the company’s single equipment products is further improved.
In terms of customer progress, the company continues to expand new customers, with more than 500 cooperative customers. The products in SoC testing are gradually upgraded, and the customer coverage continues to expand; In terms of high-power, the company has occupied the card position advantage, covering well-known head customers at home and abroad. With the outbreak of downstream new energy, it will fully benefit.
Investment suggestion: we expect the net profit attributable to the parent company in 2022 / 23 / 24 to be RMB 635 / 898 / 1189 million respectively, and the corresponding current price (closing price of 2022.4.20) PE to be 33 / 24 / 18 times respectively. We are optimistic about the company’s leading position in the field of testing machines, and SOC Test and third-generation semiconductor test will open long-term growth space for the company. Maintain a “recommended” rating.
Risk warning: product R & D risk / industry prosperity decline risk / market competition risk.
