\u3000\u3 China Vanke Co.Ltd(000002) 138 Shenzhen Sunlord Electronics Co.Ltd(002138) )
Event: on April 19, the company released the first quarterly report of 2022, realizing an operating revenue of 1.008 billion yuan, 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%.
The epidemic hit both ends of supply and demand, and the gross profit margin rebounded sharply month on month: the epidemic continued in the first quarter, the demand side was weak, and the supply side was affected from production and operation to product delivery. The company achieved a revenue of 1.008 billion yuan, yoy-4.55%; The gross profit margin reached 36.39%, yoy + 0.03pct, QoQ + 7.27pct, mainly due to the optimization of product structure and the improvement of operation efficiency; The net profit attributable to the parent company was 163 million yuan, yoy-14.76%; During the period, the expense rate was 12.57%, yoy － 1.77pct, of which the financial expense rate was yoy+0.58pct, which was caused by the increase of borrowings, while the sales / management / R & D expense rate was YoY － 0.29pct/ － 0.28pct/ － 1.78pct, which was mainly caused by the decrease of performance bonus provision due to the improvement of expense control ability and the reduction of business scale.
Consumer demand declined and automotive electronics bucked the trend: by application field,
1) 22q1 signal processing / power management / ceramics, PCB and other businesses achieved revenue of 417 / 350 / 150 million yuan, yoy – 11.23% / – 7.44% / + 1.46%, QoQ – 10.93% / + 0.94% / – 26.56%, mainly due to the weak consumer demand with the highest proportion in the downstream. According to the data of the Institute of communications and communications, the shipment volume of mobile phones in China in January 2022 was 33.022 million, yoy-17.69%, including 26.324 million 5g mobile phones, yoy-3.50%; In February, China’s mobile phone shipments were 14.864 million, yoy-31.69%, and 11.374 million 5g mobile phones, yoy-24.53%. According to the report released by trendforce Jibang consulting in March, the lower than expected sales of 21q4 mobile phones and the sluggish seasonal demand made the production performance weak in the first quarter. Superimposed on the impact of the epidemic and the conflict between Russia and Ukraine, the estimated output of smart phones in 2022 was reduced from the original 1.38 billion to 1.366 billion, and the possibility of continuous downward revision was not ruled out. We believe that the above adverse factors have been reflected in the stock price, and the fundamentals of the company are still stable; Looking forward to the future, on the one hand, the continuous improvement of 5g penetration will promote the volume and price of communication inductors. On the other hand, as the absolute leader of China’s inductors, the company will strengthen cooperation with core communication (mobile phones, base stations and other fields) enterprises outside China, and the share of key customers is expected to continue to rise. According to the company’s announcement, in addition to inductors, transformers, LTCC, common mode chokes, sensitive devices, precision ceramics and other products have also entered the communication / consumption field, the market space continues to open, and the company’s business is expected to continue to grow.
2) automotive electronics or special energy storage business achieved contrarian growth in the first quarter, with revenue reaching 91 million yuan, yoy + 51.29% and QoQ + 11.23%. The company’s automotive electronics covers many applications such as vehicle battery management system, auto drive system, OBC, vehicle networking and so on. According to the company’s announcement, the company has signed strategic cooperation agreements with some car head customers, and the new project is progressing smoothly. Automotive high reliability electronic transformers, electric vehicle BMS transformers, high reliability inductors and other products have been purchased in batches by many well-known automotive electronics enterprises and new energy vehicle enterprises at home and abroad, and a large number of new businesses are in the process of design and introduction. The automotive electronics business is in a period of accelerated volume, which is expected to open the second growth curve for the company.
Investment suggestion: we estimate that the company’s revenue from 2022 to 2024 will be 5.886 billion yuan, 7.173 billion yuan and 8.583 billion yuan respectively, the net profit attributable to the parent company will be 1.005 billion yuan, 1.252 billion yuan and 1.564 billion yuan respectively, and the PE will be 18.7 times, 15.0 times and 12.0 times respectively, maintaining the “Buy-A” investment rating.
Risk warning: the expansion of automotive electronics customers is less than expected; The recovery of consumer electronics demand is less than expected; 5g commercial progress is less than expected; The production expansion progress is less than expected; Domestic substitution is less than expected.
