\u3000\u3 Guocheng Mining Co.Ltd(000688) 200 Beijing Huafeng Test & Control Technology Co.Ltd(688200) )
Events
The company released the first quarterly report of 2022 on April 18. In 2022q1, the company achieved a revenue of 260 million yuan, a year-on-year increase of 124%, the net profit attributable to the parent was 120 million yuan, a year-on-year increase of 356%, and the net profit deducted from non attributable to the parent was 120 million yuan, a year-on-year increase of 195%.
Business analysis
1q22 revenue increased by 7.5% month on month compared with 4q21, and net profit attributable to parent company after deduction increased by 6% month on month. From January to February 2022, the company announced that it had achieved an operating revenue of 199 million yuan, a year-on-year increase of 171.97%; The net profit attributable to the parent company was 105 million yuan, a year-on-year increase of 241.35%. It is estimated that the company’s revenue in March was 60 million yuan, with a year-on-year increase of 40%, and the profit was 17 million yuan, with a year-on-year increase of 55%. The growth rate was narrowed compared with that from January to February, mainly because 4q21 had more equipment to confirm the revenue in January of 22, and the single ring ratio of 4q21 newly signed fell (seasonal fluctuation). The performance of the first quarter report basically met the expectations.
1) the company sold more than 1500 testing machines in 2021 and installed more than 4500 machines worldwide at the end of 21. The company’s 8200 products have superior performance and reliability, forming an ecosystem advantage with Chinese foreign design companies and sealing and testing manufacturers. These products account for more than 60% of the market in China. We expect to maintain stable growth with the industry in the future. 2) The company’s SOC tester is fast and large-scale. According to semi statistics, the global semiconductor test equipment market space in 2021 is US $7.8 billion, of which the SoC Test System market is the largest segment. The company expects to launch 200 and 400MHz test boards and a new generation of platforms this year to further improve the SOC coverage market and open up long-term growth space. 3) In addition, the company’s power test system can cover gallium nitride, silicon carbide, IGBT and other types of chips. The company’s layout in the field of high-power devices is relatively early, which can better deal with the technical threshold of high voltage, high current and other related technologies, and form a leading advantage in this field.
Customers are diversified and overseas customers continue to make breakthroughs. From the perspective of customer type distribution, the proportion of design and IDM customers in the company’s new orders in 2021 was close to 40%, 1q22 this proportion continued to increase, the customer structure continued to diversify, and the product ecosystem continued to optimize. Affected by the epidemic, the company’s overseas revenue in 2021 was 70 million yuan, still an increase of 20.43% year-on-year. The company has strengthened the development of overseas customers by setting up a Malaysian subsidiary and other ways, and is one of the few Chinese local test equipment manufacturers to enter the European and American semiconductor market. Through the influence of major customers in Europe and America, we believe that the company will develop the Southeast Asian market relatively smoothly in the future.
Profit adjustment and investment suggestions
The company benefited from the maintenance of industry prosperity, the expansion of product categories and the improvement of shipments. It is expected that the company’s revenue in 202224 will be RMB 1.24/16.1/2.01 billion, with a year-on-year increase of 42% / 29% / 25%, and the net profit attributable to the parent company is predicted to be RMB 620 / 800 / 990 million, with a year-on-year increase of 41% / 29% / 24%, corresponding to PE of 39 / 31 / 25, maintaining the “buy” rating.
Risk tips
The progress of new product research and development does not meet expectations; The prosperity of the industry has declined; Overseas market expansion was less than expected.
