Han CNC (301200)
Event: the company released the first quarter report of 2022. In 2022q1, the operating revenue was 925 million yuan, with a year-on-year increase of 33.18%; The net profit attributable to the parent company was 183 million yuan, a year-on-year increase of 94.01%; The net profit deducted from non parent company was 181 million yuan, with a year-on-year increase of 99.62%.
The performance of 2022q1 maintained a high growth trend and the profitability continued to improve
(1) growth analysis: in the first quarter of 2022, the company’s revenue increased by 33.18% year-on-year, and the net profit attributable to the parent company increased by 94.10% year-on-year. The main reasons are: ① the market recognition of the company’s products continues to improve, the company continues to improve its product layout and drive the expansion of sales revenue; ② In the first quarter of 2022, the company’s revenue increased significantly, the scale effect gradually appeared, and the net profit attributable to the parent company increased significantly.
(2) profitability analysis: the gross profit margin of sales in the first quarter of 2022 was 37.40%, a year-on-year decrease of 0.68pct; The net profit margin of sales was 19.71%, with a year-on-year increase of 6.14 PCT, the scale effect gradually became prominent, and the expense rate of the company further decreased. During the first quarter of 2022, the expense rate was 19.40%, with a year-on-year decrease of 1.46 PCT, of which the sales / management / financial expense rates were 7.38%, 4.97% and -0.01% respectively, with a year-on-year decrease of -2.02 PCT, + 1.48 PCT and + 1.28 PCT respectively.
(3) analysis of operating cash flow: the net cash flow from the company’s operating activities reached -167 million yuan, a year-on-year decrease of 64.78%. The net cash flow from operating activities decreased significantly compared with the same period of the previous year, mainly due to the significant growth of the company’s revenue in the first quarter of 2022, the continuous increase of funds occupied by receivables and inventories, the increase of various expenses and taxes paid, the increase of personnel scale, the increase of employee salary paid, etc.
(4) continue to increase R & D Investment: in the first quarter of 2022, the company’s R & D investment was 65 million yuan, a year-on-year increase of 1.50%, accounting for 7.06% of operating revenue. The continuous improvement of R & D investment will help the company’s products maintain industry-leading advantages and further expand the product matrix.
The PCB product structure is upgraded iteratively, and the equipment demand increases exponentially. With the rapid development of the terminal electronic information industry chain, the demand for high value-added PCB industry continues to rise, and the proportion of medium and high-end products is expected to increase from 22.1% in 2000 to 52.48% in 2025. The demand for medium and high-end products such as HDI board, IC carrier board and flexible board representing higher technical content is increasing day by day. Taking drilling equipment as an example, it is estimated that under the same output, the input of drilling equipment in HDI production line is 2.16 times and 5.60 times that of high multi-layer board and low multi-layer board respectively. The demand for PCB special equipment represented by drilling equipment shows a geometric growth trend.
Complete product matrix and continuously expand product layout horizontally. After years of development, the company’s products have covered four processes: drilling, exposure, molding and testing. With competitive product matrix and rich sales experience, the company has accumulated rich customer resources. The company’s products have complete processes. At present, it has covered various processes of many leading PCB manufacturers in the world. The synergy also promotes the company to maintain a low level in the cost of developing and maintaining customers. In the future, the company will continue to horizontally extend the existing product line, introduce AOI testing equipment in the testing process, add laminating equipment in the laminating process, and continue to improve the layout of relevant equipment in the physical process.
Extend product application and continue to expand product application fields vertically. At present, multilayer board still occupies the main share in the application field of the company’s products. In the next few years, HDI board and IC packaging substrate will be the PCB products with the fastest composite growth rate, with CAGR of 6.7% and 9.7% respectively. On the basis of deep cultivation of the leading advantages of multilayer boards, the company will vertically extend its products in the application fields of HDI, FPC and IC packaging substrates, and is optimistic about the sustainable growth potential of the company in the future.
Maintain the “overweight” rating. We maintain the previous profit forecast. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 1.078 billion yuan, 1.436 billion yuan and 2.002 billion yuan respectively; According to the share price on April 20, 2022, the corresponding PE is 21, 16 and 11 times respectively, maintaining the “overweight” rating.
Risk tips: Industry and market competition risk, industrial policy change risk, technology catch-up or replacement risk, overseas dependence of some raw materials and procurement risk of a single supplier, product quality control risk, risk of deterioration of business environment caused by aggravation of covid-19 epidemic.
