\u3000\u3 China Vanke Co.Ltd(000002) 384 Suzhou Dongshan Precision Manufacturing Co.Ltd(002384) )
The net profit attributable to the parent company was RMB 31.293 billion, a year-on-year increase of RMB 1.717 billion, and the net profit attributable to the parent company was RMB 1.717 billion, a year-on-year increase of RMB 1.717 billion, a year-on-year decrease of 1.717%.
The main business blossoms at multiple points, optimizing financial strategy + improving management efficiency, and promoting high-quality growth. In 2021, under the adverse background of the global electronic supply chain operation blocked by the epidemic, the company effectively realized the internal potential tapping by virtue of the strategy of “benchmarking management, quality improvement and efficiency enhancement”, especially the electronic circuit business. The number and share of mflex in the core key customers increased synchronously, multek’s production capacity and customer structure were improved, and the overall steady growth was realized. The rest of the business segments grew to varying degrees, During the reporting period, the revenue of the company’s four business segments of electronic circuits, touch display, LED devices and precision components increased by 9.78%, 26.07%, 20.40% and 14.47% respectively year-on-year. At the same time, in 2021, the company continued to improve management efficiency, strictly control capital expenditure, optimize capital structure and debt structure, reduce corporate financial pressure, and the company’s asset liability ratio decreased by 3.53 PCT year-on-year at the end of the reporting period To 61.34%, the digital transformation of operation management and the financial strategy of “reducing leverage and adjusting structure” will effectively boost the high-quality growth of the company in the next few years.
FPC: the incremental markets of consumer electronics and automotive electronics are clear, and the growth space of the company is expected to be further expanded. At present, the company has grown into the top three PCB suppliers in the world. In the field of consumer electronics and new energy vehicles, mlfex has cut into the global core end customer supply chain system and plays an important role. The consumer electronics end. Although the smartphone has been in the stock game stage in the past few years, the company has still realized the continuous improvement of the item number and share of core customers. At the same time, Core customers are expected to launch the first VR / AR product in the second half of this year. At that time, the soft board will be an indispensable product, which will bring considerable incremental market space for the company’s products; In the field of new energy vehicles, while deepening cooperation with major customers in North America, the company will actively explore new forces of domestic car making, realize all-round clamping, continuously improve the intelligence of the whole vehicle, increase the functional modules, increase the chips and electronic components in the vehicle, and the connection between different functional modules in the vehicle becomes more and more complex. In this case, Excessive use of wire harnesses for connection will make it difficult to avoid problems such as intertwining between different wire harnesses, resulting in unnecessary insecurity. Therefore, there is a large demand for vehicle FPC with regular layout and compact structure. As the world’s top two FPC supplier, the company is expected to take the lead in benefiting.
Give full play to the advantages of the industrial chain, effectively coordinate various businesses, and comprehensively embrace the blue ocean market of new energy. In 2021, the company’s revenue related to new energy vehicles increased by 120% year-on-year. Based on its understanding of various market segments and its own positioning, the company focused its new three-year development plan on the field of new energy vehicles. At present, FPC business has made achievements in the field of new energy vehicles, and photoelectric display and precision component products also have application prospects. The technical reserves accumulated in the past will help the company accurately grasp industrial development opportunities, such as precision components, In the application trend of aluminum alloy products promoted by automobile lightweight, the company has realized the supply of lightweight aluminum alloy functional structural parts for well-known automobile customers in the industry. In the future, the company will continue to seek the application of its main products in the electrification and intellectualization of new energy vehicles, and continue to cultivate new profit growth points.
Profit forecast and investment rating: for the first time, a buy rating is given. Based on the above analysis, we expect the net profit of the company from 2022 to 2024 to be XX billion yuan, XX billion yuan and XX billion yuan respectively. The current share price corresponds to XX, XX and XX times of PE respectively. It is covered for the first time and given a buy rating.
Risk tips: (1) the launch of VR / AR products of key customers is delayed or the shipment is not as expected; (2) The penetration of new energy vehicles slowed down; (3) The expansion of each product line in the field of new energy vehicles is less than expected.
