\u3000\u3 China Vanke Co.Ltd(000002) 384 Suzhou Dongshan Precision Manufacturing Co.Ltd(002384) )
Core view
In 2021, the revenue increased by 13.2% year-on-year, the net profit attributable to the parent increased by 21.7% year-on-year, and the performance increased steadily. The company issued an annual report, with a revenue of 31.793 billion yuan (YoY + 13.2%) and a net profit attributable to the parent company of 1.862 billion yuan (YoY + 21.7%) in 21 years; Among them, 4q21's revenue was 9.986 billion yuan (YoY + 1.5%), and the net profit attributable to the parent company was 664 million yuan (YoY + 15.7%). The steady growth of performance in the past 21 years is due to: 1) FPC soft board maintains in-depth cooperation with core customers and actively promotes the expansion of VR / AR, new energy and other emerging businesses; 2) PCB hard board overcomes the adverse effects of power restriction and raw material price rise, fully tap the internal potential and achieve breakthrough business results; 3) Further carry out benchmarking management, cost reduction and efficiency increase, and constantly optimize the capital structure and debt structure.
We continued to promote cost reduction and efficiency increase. In the 21st year, the net interest rate increased by 0.41pct and the asset liability ratio decreased by 3.53pct. The gross profit margin of the company in 21 years was 14.67% (yoy-1.59pct), with a year-on-year decrease mainly due to: 1) the freight of 190 million yuan was adjusted from the sales expense to the operating cost; 2) The rise of raw material prices, the appreciation of RMB exchange rate, periodic power rationing and other adverse factors. In this context, the company's net interest rate in the 21st year still increased by 0.41pct to 5.86% year-on-year. Thanks to the company's continuous promotion of cost reduction and efficiency increase, and the continuous optimization of financial indicators through measures such as optimizing organizational structure, strictly controlling unnecessary capital expenditure and strengthening budget management, the company's expense rate in the 21st year decreased by 1.51pct to 8.14% year-on-year and the asset liability ratio decreased by 3.53pct to 61.34% year-on-year.
In 2021, multek's revenue increased by 43.9% year-on-year, and the revenue of new energy vehicle industry increased by 120% year-on-year. In terms of business, the revenue of PCB in 21 years was 20.495 billion yuan (YoY + 9.2%), and the gross profit margin was 15.5% (yoy-1.5pct), of which the revenue of FPC soft board (mflex) was 15.72 billion yuan (YoY + 1.7%), and the revenue of PCB hard board (multek) was 4.78 billion yuan (YoY + 43.9%). In 21 years, the revenue of touch panel and LCM was 5.16 billion yuan (YoY + 26.1%), and the gross profit margin was 8.2% (yoy-4.2pct); Led revenue is 2.6 billion yuan (YoY + 20.4%), and gross profit margin is 18.3% (YoY + 4.0pct); The revenue of precision components is 3.43 billion yuan (YoY + 14.5%), and the gross profit margin is 15.4% (yoy-2.0pct). In addition, the company's new energy vehicle industry revenue increased by 120% year-on-year in 21 years. The company established ne strategic department to actively seek the application and breakthrough of products in the new energy vehicle market.
Investment suggestion: the target price is 23.40-24.09 yuan, maintaining the "buy" rating. We are optimistic about the company's FPC soft board business, focusing on the increase of Apple's share, actively expanding new customers of intelligent wear and automobile, optimistic about the PCB hard board business, and grasp the market opportunities of automobile electrification and server upgrading. We expect that the company's revenue from 22 to 24 years will increase by 13.0%/11.7%/11.0% year-on-year to RMB 35.921/40.123/44.552 billion, and the net profit attributable to the parent company will increase by 26.4%/23.2%/20.1% year-on-year to RMB 23.53/28.99/3.483 billion. Referring to the PE valuation of 17.7 times of the consistent expected average of wind, a comparable company in 2022, we give the company 17-17.5 times of the expected PE in 2022, corresponding to the target price of 23.40-24.09 yuan, maintaining the "buy" rating.
Risk warning: new business development is not as expected; High dependence on Apple customers; International trade risks.
