\u3000\u3 China Vanke Co.Ltd(000002) 384 Suzhou Dongshan Precision Manufacturing Co.Ltd(002384) )
Event: Suzhou Dongshan Precision Manufacturing Co.Ltd(002384) 4 on April 20, the annual report of 2021 was released. In 2021, the company achieved revenue of 31.793 billion yuan (YoY + 13.17%), net profit attributable to parent company of 1.862 billion yuan (YoY + 21.72%), and net profit attributable to parent company of 1.576 billion yuan (YoY + 21.17%). Corresponding to the single quarter of 21q4, the company achieved a revenue of 9.986 billion yuan (YoY + 1.48%, QoQ + 27.99%); The net profit attributable to the parent company was 664 million yuan (YoY + 15.68%, QoQ + 11.97%), and the net profit attributable to the parent company after deduction was 537 million yuan (YoY + 3.96%, QoQ + 5.42%). In addition, the company released the first quarterly report of 2022 on April 22, and 22q1 achieved a revenue of 7.312 billion yuan (yoy-2.61%); The net profit attributable to the parent company is 364 million yuan (YoY + 48.62%), and the net profit attributable to the parent company after deduction is 304 million yuan (YoY + 44.98%).
The effect of cost reduction and efficiency increase is remarkable, and the main business blooms at multiple points. In terms of business, in 2021, the company's electronic circuit business achieved a revenue of 20.495 billion yuan (YoY + 9.18%) and a gross profit margin of 15.5% (yoy-1.48pct); TP & LCM module business achieved a revenue of 5.156 billion yuan (YoY + 26.07%) and a gross profit margin of 8.16% (yoy-4.24pct); The LED display device business achieved a revenue of 2.604 billion yuan (YoY + 20.4%) and a gross profit margin of 18.31% (YoY + 3.97pct); The precision component business achieved a revenue of 3.427 billion yuan (YoY + 14.86%) and a gross profit margin of 15.43% (yoy-1.97pct). In 2021, the company's comprehensive gross profit margin was 14.67% (yoy-1.59pct), with a year-on-year decline, which was mainly affected by exchange rate changes, price increases of raw materials and components, adjustment of freight to operating costs and the climbing of Yancheng phase II production. In addition, in 2021, the company achieved significant cost reduction and efficiency increase, and the capital structure and debt structure were continuously optimized. In 2021, the company's asset liability ratio was 61.34%, a year-on-year decrease of 3.53pct; The operating cash flow was 3.21 billion yuan (YoY + 9.46%). From the expense side, in 2021, the company's sales / management / R & D / financial expense ratio was 1.07% / 2.46% / 3.24% / 1.17% respectively, with a year-on-year increase of -0.65pct / + 0.02pct / + 0pct / - 0.87pct, and the overall expense ratio improved significantly.
The electronic circuit business grew steadily, and the growth momentum of consumer electronics was sufficient. In 2021, the company's electronic circuit business segment achieved steady growth, FPC soft board (mflex) achieved revenue of 15.72 billion yuan (YoY + 1.73%), and PCB hard board (multek) achieved revenue of 4.775 billion yuan (YoY + 43.91%). In 2021, multek actively overcame the adverse effects of periodic power rationing and rising prices of raw materials, and achieved a year-on-year increase in revenue through capacity expansion and customer structure optimization. In terms of FPC soft board, mflex maintains in-depth cooperation with core customers. With the launch of new key customers and the introduction of new value increasing material numbers such as display module board in the future, mflex's ASP and share in key customers are expected to maintain rolling improvement; In addition, major customers are expected to launch the first AR / VR product in the second half of this year, and the company's soft board products are expected to enter the relevant industrial chain, thus opening up new incremental market space.
The revenue of the new energy vehicle industry is growing rapidly, and multiple departments cooperate to attack the vehicle market in an all-round way. In 2021, the company made full use of the brands, relevant capabilities and advantages accumulated in the field of electronic circuits and precision manufacturing, and actively cooperated with customers in the new energy vehicle industry to develop product solutions. In 2021, the revenue in the new energy vehicle industry increased by 120% year-on-year. The company actively makes use of the advantages of the industrial chain and the synergy of various departments to layout the new energy vehicle track in multiple directions: 1) in terms of FPC soft board, the soft board business of Dongshan BMS is deeply bound to t customers, and the first mover advantage is obvious. With the continuous improvement of BMS penetration, the company is expected to realize the simultaneous increase of volume and price through capacity expansion and customer expansion in 2022, so as to further strengthen the first mover advantage. 2) In terms of PCB hard board, with the improvement of Automotive Electric Intelligence and the continuous increase of vehicle PCB consumption, the company's PCB products are expected to continue to increase in ADAS, lidar, intelligent cockpit and other fields. 3) In the field of precision manufacturing, at present, the company mainly provides automotive cooling parts, precision structural parts and other products for new energy vehicle customers. In the future, the company will empower the high-quality and low heat dissipation technologies accumulated in the communication field for many years to the automotive field, and actively develop new products. The category and value of single vehicle products are expected to be further improved. 4) The trend of automobile intellectualization is obvious, and the human-computer interaction will be realized mainly through the touch screen. In the future, the company's photoelectric display business is expected to make a breakthrough in the automobile field.
Investment suggestion: it is estimated that the net profit attributable to the parent company in 22 / 23 / 24 years will be RMB 2.369/29.99/3.674 billion, corresponding to 12 / 10 / 8 times of PE. As the world's leading PCB manufacturer and the country's leading precision manufacturing leader, the company focuses on new energy vehicles, AR / VR and other emerging markets. At the same time, the company manages to improve quality and efficiency, reduce costs and maintain the "recommended" rating.
Risk warning: price fluctuation of raw materials; Industry competition intensifies; The expansion of production was less than expected.
