\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 19 Shenzhen Microgate Technology Co.Ltd(300319) )
Event:
The company released the annual report of 2021. In 2021, the company's operating revenue was 3.318 billion yuan, a year-on-year increase of 42.47%; The net profit attributable to the parent company was 304 million yuan, a year-on-year increase of 752.03%; The net profit attributable to the parent company after deduction was 264 million yuan, a year-on-year increase of 615880%.
Comments:
The decline of profit margin is limited, and the profitability is resilient
From the Q4 single quarter of 2021, the operating revenue was 845 million yuan, a year-on-year increase of 15.09%; The net profit attributable to the parent company was 73 million yuan, a year-on-year increase of 305.28%; The gross profit margin and net profit margin were 19.98% and 9.00% respectively. Affected by the insufficient prosperity of the consumer electronics industry, the company's performance is under pressure. In 2021q4, the gross profit margin and net profit margin decreased respectively month on month, but the decline range is controllable. Compared with previous years, 3.63/2.58 is still at a high level, and the profitability has strong toughness.
Iterative upgrading of all product lines to seize the downstream development opportunities
All product lines of the company ensure the competitiveness of the industry through product upgrading. After the fixed increase project is completed in 2021, it is expected to increase the production capacity of high-end small-size inductors, including 1.1 billion LTCC RF components, 2.5 billion SAW filters and 1.4 billion SAW filters. Tc-saw and RF modules have been delivered to the downstream, and the research and development of BAW filters have been promoted in an orderly manner. The inductance transformer products of the subsidiary jinzhichuan are widely used in emerging fields such as automotive electronics, photovoltaic and energy storage. In 2021, the new automotive electronics customers were introduced, with an overall revenue of 427 million yuan, a year-on-year increase of 19.24%. The downstream customers include well-known vehicle electrical sub component manufacturers such as Shenzhen Inovance Technology Co.Ltd(300124) , inbor and so on. In the future, the company will strengthen capacity construction to ensure stable supply capacity.
Profit forecast and investment suggestions
The performance of the company in 2021 is in line with the expectation. Considering the overall pressure of the consumer electronics industry, we expect the revenue of 22-23 years to be RMB 3.9584437 billion respectively (the original value is RMB 4.0504504 billion), the net profit attributable to the parent company to be RMB 408502 million respectively (the original value is RMB 456 / 545 million), and increase the 24-year revenue forecast to be RMB 583 million, EPS to be RMB 0.47/0.58/0.68, and the revenue to be RMB / share. For RMB 4.939 billion, the net profit to be PE is 18 / 15 / 13 times respectively. According to the calculation of segment valuation method, about 23 times PE is given for the profit forecast in 2022, and the target price is 10.98 yuan, maintaining the "buy" rating
Risk tips
The downstream demand remains sluggish, the localization process is less than expected, the industry competition intensifies, and the construction of fixed growth projects is less than expected
