\u3000\u30 Beijing Jingyeda Technology Co.Ltd(003005) 93 Beijing Relpow Technology Co.Ltd(300593) )
Event overview
1) the company released its 2021 annual report. In the past 21 years, the company achieved an operating revenue of 1.478 billion yuan, a year-on-year increase of 75.37%. The net profit attributable to the parent company was 274 million yuan, a year-on-year increase of 122.02%. Net profit deducted from non parent company was RMB 271 million, with a year-on-year increase of 152.14%.
2) the company released the first quarterly report of 2022, realizing an operating revenue of 471 million yuan, a year-on-year increase of 66.48%; The net profit attributable to the parent company was 87 million yuan, an increase of 69.69% over the same period last year. Net profit after deduction of non return to parent was 85 million yuan, an increase of 68.05% over the same period last year.
Analysis and judgment:
The downstream industry has strong demand, the impact of the epidemic has gradually recovered, the power industry has been rapidly driven, the volume continues to increase, and the revenue in 2022q1 has increased continuously month on month
By industry, after the 14 five-year plan, the scale of national investment in aviation, aerospace and other industries has increased, the downstream demand in special industries such as aviation, aerospace and shipbuilding is booming, and the variety and quantity of power products developed by the company have entered the stage of batch delivery continue to increase. The gross profit rate of aviation and aerospace applications increased by 649.1% year-on-year, with a year-on-year increase of 6.81 billion yuan, and the gross profit rate of 2021.8 billion yuan. The development trend of special industries is good, and the advantages of multi category and localization of the company's special industries help the company's market expansion.
The construction of 5g base stations outside China continued. With the gradual recovery of the overseas market under the repair of the epidemic, the communication industry, especially the export business, recovered rapidly. Under the background of material shortage, the company adopted an active material preparation strategy and actively built production capacity to ensure product delivery, actively responded to customer needs, and achieved rapid growth in the company's overall revenue and net profit. In 2021, the operating revenue in the field of communication and network was 543 million yuan, with a year-on-year increase of 133.12% and a gross profit margin of 26.75%, a year-on-year decrease of 0.1pct.
In 2022q1, the revenue reached 471 million yuan, with a year-on-year increase of 66.48% and a month on month increase of 0.30%. According to the historical quarterly performance fluctuation, the seasonal fluctuation of the company is obvious, and the Q1 revenue is lower than the annual average level. We expect that with the gradual release of orders, the performance in 2022 is expected to maintain a high-speed growth.
The effect of cost reduction and efficiency increase is obvious, the R & D field continues to invest, and the profitability is greatly improved
During this period, the cost rate decreased and the effect of cost reduction and efficiency increase was obvious: with strong R & D and innovation ability and technical strength, the company has accumulated good brand awareness and a large number of high-quality customer resources and established a long-term and stable strategic cooperation supporting relationship in the in-depth cooperation with customers in many industries such as communication, network, aviation, aerospace, shipbuilding, railway, electric power, industrial control and so on. At the same time, the company gives full play to the advantages of scale and innovation platform, gradually forms a more "win-win" strategic cooperative relationship with customers, and continues to participate in the research of customers' future products to support customers' long-term product planning. Over the past 18 years, the company's expense ratio has gradually decreased, the management efficiency has been improved, and the company's profitability has been improved. The ratio of sales / management / Finance / R & D expenses in 2021 was 4.09/5.21/1.46/13.57% respectively, which was -0.67 / - 2.45 / - 1.05 / - 1.02pct respectively compared with the same period last year.
Strengthen scientific and technological innovation and strengthen market development: in 2021, the company's annual R & D expenditure was 201 million yuan. During the reporting period, the company developed a number of series of module power supplies including brick module, inch module, thick film hybrid integrated circuit process module and surge suppression module, customized power supply for aerospace, mobile base station power supply for 5g, high-efficiency and high-power power power supply and power supply and distribution system, railway power supply, ship power supply, laser power supply, power micro module power supply (i.e. chip power supply), power management integrated circuit Motor drive module, etc; According to the needs of the market and key customers, we have formulated the product localization R & D strategy and carried out a lot of localization R & D work. Focusing on China's 5g communication market, 700m related power supply supporting products have been developed. For foreign 5g communication applications, ran applications and other related products have been developed. The above products meet the requirements of "simple and flexible deployment and high protection requirements" of 5g construction. The company continues to increase investment in R & D technology, strengthen market development, expand new product categories while ensuring the leading position of existing products, strengthen the company's core competitiveness and achieve sustained performance growth.
Thanks to the strategic deployment of military industry and 5g technology, the power supply industry will show great development potential
The development of aerospace industry provides a broad market space for the development of power supply industry. In recent years, China's aerospace industry has achieved great success, and the scale of the aerospace market has increased year by year. According to the 2021 China Commercial Aerospace Research Report, the market scale of China's aerospace industry increased from 376.4 billion yuan to 1020.2 billion yuan from 2015 to 2020, with a compound annual growth rate of 22.09%; According to the analysis of the upstream, middle and downstream markets of China's aviation equipment industry chain in 2021, China's aviation industry is also developing rapidly. In 2020, China's aviation equipment operating revenue was 102.89 billion yuan, with a year-on-year increase of 10.15%, and the growth rate continued to rise. While the scale of aerospace market continues to increase, the significant improvement of electrification level promotes the year-on-year increase of power products required by unit aerospace equipment, providing a broad market space for the development of power industry.
5g technology accelerates the layout and further releases the market demand of power supply. In recent years, 5g technology has developed rapidly in the world. Major countries and regions attach great importance to 5g development. Many government agencies have also intensively issued relevant strategic policies from the perspective of the top level and combined with their own actual situation to deploy the key areas and main directions of industrial development and promote the rapid development of relevant industries. According to the data of prospective industry research institute, from 2018 to 2020, the global 5g base station market scale increased from US $69.2 billion to US $80.3 billion, with an average annual compound growth rate of more than 7.7%, which is expected to reach US $109.4 billion by 2024. As the heart of electronic equipment, power supply is the basic component of 5g communication, server, data center and so on. With the further optimization and upgrading of the global 5g communication base station and data center construction layout, it is bound to further release the demand of the power market.
The product pedigree is becoming more and more complete, the fixed increase layout sip, the product localization ability is outstanding, and the advantages are expected to be amplified under the continuous influence of trade disputes
As a giant of special power supply, Beijing Relpow Technology Co.Ltd(300593) has been deeply applied in the fields of communication, electric power and industrial control for more than 20 years. At present, its products mainly include power micro module, module power supply, customized power supply, high-power power supply and original power supply and distribution system. In recent years, high-power supply and thick film power supply have successively entered the fields of communication, special and data center.
On January 28, 2022, the company issued a fixed growth plan, which plans to raise no more than RMB 1.581 billion, layout SIP (RMB 145 million), 5g communication and server power supply (RMB 94 million), and expansion projects for special power supply (RMB 785 million). In addition, the company actively developed chip power supply, laser power supply, motor drive module, etc., and the layout includes multiple emerging subdivision growth scenarios such as lasers and servers. During the reporting period, the company's IC R & D center developed multiple series of power management integrated circuits (including monolithic integrated circuits, power micro modules, etc.), which laid a solid foundation for the company's power products to be localized. Among them, the high reliable packaged power micro module power supply (i.e. chip power supply) combines the product design of the independently designed high integrated power management chip and the advanced packaging process of power SIP to realize 100% independent and controllable design and manufacturing.
In addition, the company has reserved a large R & D team and technology in the high reliable power supply industry, which lays a solid foundation for undertaking the research and development tasks of many domestic products.
Increase cash dividends, accelerate the release of performance, and steadily improve the rate of return to shareholders
According to the announcement of the company on January 28, 2022, the company plans to increase shareholders' dividends in the next three years (20222024), give priority to cash dividends when cash dividends are available, and each year shall not be less than 10% of the distributable profits of the current year. At the same time, the company puts forward differentiated cash dividend policies according to its own development stage (maturity / growth period) and whether there are major capital expenditure arrangements, The minimum cash dividend ratio shall reach 80% (mature period & no major expenditure) /40% (mature period & major expenditure) /20% (growth period & major expenditure).
Investment advice
Optimistic about the stable growth of the company's performance driven by the demand and the pull of the second growth curve under the domestic substitution environment, the profit forecast is raised. It is expected that the revenue from 2022 to 2024 will be adjusted from 15.57/20.51/n/a to 2.60/27.76/3.714 billion yuan respectively, and the earnings per share will be adjusted from 1.08/1.51/n/a to 1.45/2.01/2.79 yuan respectively, corresponding to the closing price of 38.53 yuan / share on April 22, 2022, and the PE will be 26.66/19.14/13.82 times respectively, maintaining the "overweight" rating.
Risk tips
The risk of demand instability caused by repeated overseas epidemics and market competition, the risk of instability of Global trade disputes, the market promotion of 5g power supply in China is less than expected, the rhythm of special order delivery and revenue confirmation is less than expected, and the risk of customer concentration.
