\u3000\u3 China Vanke Co.Ltd(000002) 138 Shenzhen Sunlord Electronics Co.Ltd(002138) )
Events
Shenzhen Sunlord Electronics Co.Ltd(002138) released the report for the first quarter of 2022: the company achieved an operating revenue of 1.008 billion yuan in the first quarter of 2022, a year-on-year decrease of 4.55%; The net profit attributable to the parent company was 163 million yuan, a year-on-year decrease of 14.76%; The net profit deducted from non parent company was 150 million yuan, a year-on-year decrease of 18.16%.
Key investment points
In the first quarter, the sales revenue remained stable and the gross profit margin was repaired month on month
In the first quarter of 2022, under the influence of the local epidemic in Shenzhen and the epidemic in Hong Kong, the company’s daily business activities were seriously affected. However, based on the continuous shortage of downstream customer demand caused by the epidemic, the company actively took various measures to ensure production and sales, and realized that the sales revenue was basically the same as that of the same period last year. In terms of business, the company’s products achieved sales revenue of 417 million yuan, 350 million yuan, 91 million yuan and 150 million yuan respectively in the fields of signal processing, power management, automotive electronics or energy storage, ceramics and PCB. Among them, the revenue of products in the field of automotive and energy storage continued to increase, reflecting the strong growth potential of new business lines. In terms of profitability, the company achieved a gross profit margin of 36.39% in Q1 of 2022, an increase of 0.03 PCT over the same period of the previous year and 7.27 PCT month on month. Under the influence of product structure optimization, management reform and improvement of operating efficiency, the company’s gross profit margin in the first quarter was repaired and basically restored to the level of gross profit margin at the beginning of 2021.
Auto electronics and other new products expanded, and the long-term growth trend remained unchanged
Benefiting from the development of 5g communication, the demand for single inductor in base stations, mobile terminals and communication modules has increased rapidly. As the leading enterprise of chip inductors with the world’s top three market share and the first in China, the company’s products are deeply distributed in mobile terminals and communication base stations, with a wide range of customers. The breadth and depth of cooperation with core communication enterprises at home and abroad continue to improve, and the market share of existing core customers continues to grow. The sustainable development of 5g industry will contribute steadily to the expansion and volume of the company’s communication business. In addition, the company continues to enrich the new product line with core competitiveness, and takes the lead in the layout of new energy electrification and intelligent application of automotive electronics. Automotive electronics products continue to push through the old and bring forth the new. Products such as high reliability electronic transformer, electric vehicle BMS transformer and high reliability inductor have been recognized by customers. The product scale is expected, and the company has broad growth space for automotive electronics.
Release share repurchase and executive shareholding increase plans to strengthen confidence in stable development in the future
The company issued a share repurchase plan on April 20. The company plans to repurchase 571438571400 shares at a price of no more than 35 yuan / share and a total amount of 200300 million yuan, accounting for 0.71% – 1.06% of the total issued share capital of the company, which will be used in the equity incentive plan or employee stock ownership plan in the future. On the same day, the company issued an announcement on the plan of increasing shares held by concerted action of shareholders, directors and senior managers holding more than 5%, and plans to increase their holdings by 50 million yuan to 100 million yuan, so as to further improve the shareholding structure of the management and demonstrate the firm confidence of the management in the sustainable and stable development in the future.
Profit forecast
It is predicted that the company’s revenue from 2022 to 2024 will be 5.767 billion yuan, 7.031 billion yuan and 8.593 billion yuan respectively, and the EPS will be 1.26, 1.58 and 1.89 yuan respectively. The corresponding PE of the current stock price will be 19, 15 and 12 times respectively, giving the “recommended” investment rating.
Risk tips
Risk of epidemic affecting production and operation; The downstream demand is lower than the expected risk; The risk of intensified industry competition; Raw material price fluctuation risk.
