\u3000\u3 Guocheng Mining Co.Ltd(000688) 286 Memsensing Microsystems (Suzhou China) Co.Ltd(688286) )
Event:
The company released its annual report for 2021, and achieved an operating revenue of 352 million yuan, a year-on-year increase of 6.57%; The net profit attributable to the parent company was 12.42 million yuan, a year-on-year decrease of 70.16%; After deducting non profit, the net profit attributable to the parent company lost 1.97 million yuan.
Comments:
Equity payment expenses and R & D expenses increased significantly, and the company’s profit fell significantly in the short term. The company’s operating revenue increased by 6.57%, but the net profit attributable to the parent decreased by 70.16% year-on-year, mainly due to the sharp increase in share based payment and R & D expenses of equity incentive in the current period. In 2021, the company’s sales expenses were 11.75 million yuan, a year-on-year increase of 43.85%; The management fee was 56.21 million yuan, an increase of 82.32% year-on-year; The R & D cost was 75.62 million yuan, a year-on-year increase of 79.86%. Under the epidemic, the growth of the consumer electronics market slowed down, the growth of the company’s revenue slowed down, and the sharp increase in the cost side led to a sharp decline in the company’s profitability in the short term.
Under 5g + AI + IOT, MEMS application scenarios continue to expand. We are optimistic about the company’s long-term development potential. The development of AI, 5g and IOT will make the application scenarios of MEMS sensors more diverse. The company is one of the few companies in China with independent chip design ability in the fields of MEMS acoustic sensors, pressure sensors and inertial sensors, focusing on R & D. The company’s main product, MEMS acoustic sensor, as the sensing device of external acoustics, is expected to further increase its share, while other sensors also bear the corresponding sensing needs of external pressure, height and posture, and are expected to be in large quantities under the changing trend of customer structure.
Profit forecast and investment suggestions
Considering the impact of the company’s business structure adjustment and the pressure on its performance, we expect the company to achieve an operating revenue of RMB 423 / 555 / 761 million from 2022 to 2024, and a three-year CAGR of 29.34%; The net profit attributable to the parent company was 43 / 52 / 73 million yuan, and the three-year CAGR was 80.15%. Considering the gradual recovery of the company’s profitability and the growth prospect after the adjustment of the company’s business, combined with the industry average PE and PEG valuation method, the company was given 69 times PE, corresponding to the target price of 54.96 yuan, and maintained the “overweight” rating.
Risk tips
Risk of product customer import falling short of expectations; The downstream demand is less affected by the epidemic situation and other factors than the expected risk;
