\u3000\u3 China Vanke Co.Ltd(000002) 916 Shennan Circuits Co.Ltd(002916) )
According to the performance report of Q1 company in 2022, the company's operating revenue was 3.316 billion yuan, a year-on-year increase of 21.68%; The net profit attributable to the parent company was 348 million yuan, a year-on-year increase of 42.83%; The gross profit margin was 26.79%, with a year-on-year increase of 3.35 percentage points. Compared with the same period last year, profitability improved significantly.
Key investment points:
The company's profitability improved in the first quarter and the product structure was optimized: the company's revenue and net profit increased year-on-year in the first quarter, mainly due to two aspects. The first is the cost side. The productivity utilization of PCB and packaging substrate has been improved. At present, it is in full production, driving the reduction of unit fixed cost. Secondly, in terms of products, due to the rapid growth of high gross profit packaging substrate and automotive electronics business, the gross profit margin of the company's products has been improved and the product structure has been optimized. In 2022, Q1 company's revenue and net profit increased significantly year-on-year, basically for the good.
The development of the company's printed circuit board business is relatively stable: the company's printed circuit board business accounts for a relatively high proportion, accounting for 62.66% in 21 years. The downstream of the company's PCB business is mainly in the field of communication. At present, the demand of China's communication market has slowed down, but the export of communication products has increased. At the same time, the orders of data center and automotive electronics business have increased significantly, with the growth rates of 45% and 150% respectively in 21 years. The subsequent growth of PCB business is expected to accelerate.
The company's 22-year capacity construction plan has been smoothly promoted, and the main contribution of automotive electronics and packaging substrate business is incremental: the company's 22-year capacity increment is mainly from Nantong phase III automotive electronics factory and Wuxi packaging substrate phase II project. Nantong phase III project has been put into operation in Q4, 2021. At present, it is in the climbing stage. It is mainly engaged in automotive electronic products, including high-frequency microwave sector, rigid flex combined sector, thick copper sector, etc. Benefiting from the continuous improvement of the penetration rate of new energy vehicles, the relevant business of the company is expected to grow further in 22 years. Wuxi packaging substrate project is also in the climbing stage at present. Driven by the strong demand of chip downstream, the company's packaging substrate business has increased rapidly, with a year-on-year increase of 56.35% in 21 years; Driven by electronic products and new energy vehicles, the demand for chip packaging is expected to remain strong in 22 years.
Profit forecast and investment suggestions: it is estimated that from 2022 to 2024, the operating revenue will be 16731 / 19742 / 22.901 billion yuan, and the net profit attributable to the parent company will be 1920 / 2296 / 2568 million yuan respectively, corresponding to the closing price on April 20, EPS will be 3.74/4.48/5.01 yuan, and PE will be 25.62x/21.42x/19.16x, maintaining the "buy" rating.
Risk factors: macroeconomic fluctuation risk; Sino US trade friction, covid-19 pneumonia epidemic risk; Market competition risk; Risk of untimely development of new products; Raw material supply price fluctuation risk.
