\u3000\u3 China Vanke Co.Ltd(000002) 138 Shenzhen Sunlord Electronics Co.Ltd(002138) )
Core conclusion
Event: on April 19, the company released the first quarterly report of 22 years, realizing a revenue of 1.008 billion yuan, a year-on-year increase of – 4.6%; The net profit was 198 million yuan, a year-on-year increase of 0.5%; The net profit attributable to the parent company was 163 million yuan, a year-on-year increase of – 14.8%.
Q1 performance meets expectations. Affected by the epidemic in the first quarter, customer demand was weak; The local epidemic situation in Shenzhen has led to the failure of business activities to carry out completely normally; The Hong Kong epidemic affected the delivery of customers’ products. However, the company actively responded to various difficulties, closely contacted customers, worked hard to ensure production, and continued to promote new product research and development. Its revenue was basically the same as that of the same period last year. At the same time, it saved costs and reduced the impact of the epidemic. Q1 performance met market expectations. In terms of products, the revenue of signal processing, power management, automotive electronics or energy storage, ceramics & Modules & Sensing & PCB and others were RMB 420 million, RMB 350 million, RMB 90 million and RMB 150 million respectively, with a year-on-year growth of – 11.3%, – 7.7%, 51.7% and 1.4%. The growth of automotive electronics business is still relatively strong.
Gross profit margin increased significantly month on month. 1) Gross profit: the gross profit margin of Q1 was 36.39%, up 0.03 PCT year-on-year and 7.27 PCT month on month. The gross profit margin increased significantly month on month, mainly due to the change of product sales structure; The company continues to carry out technological innovation and management innovation to improve the proportion of high value-added products; Continue to expand emerging markets; Management reform to improve business efficiency; 2) Expenses: Q1 sales, management, R & D and financial expenses were 18 million yuan, 36 million yuan, 57 million yuan and 15 million yuan respectively, with a year-on-year increase of – 17.5%, – 11.3%, – 27.4% and 58.4%. The sales, management and R & D expenses decreased significantly, mainly due to the decrease in the provision of performance bonus.
Large repurchase demonstrates development confidence. In the short term, due to the impact of the epidemic and the downward trend of consumer demand cycle, the company’s performance is under pressure in the short term. However, in the long run, the company’s inductance products have strong competitive advantages in the downstream, and continue to expand high growth fields such as automotive electronics and energy storage, which can be expected to grow in the long term. Based on its own value judgment and confidence in its future development, the company issued a repurchase plan. It plans to repurchase shares in large amount of 200300 million yuan at a price of no more than 35 yuan / share (inclusive), which accounts for 1.06% of the total share capital of the company according to the upper limit of the repurchase amount.
Profit forecast. Based on the impact of the epidemic and the downward trend of consumer demand, the net profit for 22-24 years was reduced to 920 million, 1.17 billion and 1.49 billion yuan (the previous value was 1.01 billion, 1.27 billion and 1.56 billion yuan), maintaining the “buy” rating.
Risk warning: the recovery of downstream consumer demand is less than expected; Covid-19 epidemic impact, etc.
