\u3000\u3 China Vanke Co.Ltd(000002) 384 Suzhou Dongshan Precision Manufacturing Co.Ltd(002384) )
Abstract
FPC is a leader in the industry and has a wide business coverage. The company has been deeply engaged in the electronic equipment and device industry for more than 40 years, and its products cover three fields: electronic circuit, photoelectric display and precision manufacturing. The FPC field of the company has reached the top three in the world, has sufficient momentum for development in the fields of consumer electronics and automotive electronics, and has established good strategic cooperation relations with well-known brand customers at home and abroad.
The performance of 2021 was in line with expectations, and the net profit attributable to the parent company increased by 22% year-on-year. In 2021, the company achieved a revenue of 31.793 billion yuan, a year-on-year increase of 13.17%, and a net profit attributable to the parent company of 1.862 billion yuan, a year-on-year increase of 21.72%. The gross profit margin of the company in 2021 was 14.67%, a year-on-year decrease of 1.59pct. In 2021, Q4 achieved a revenue of 9.986 billion yuan, a year-on-year increase of 1.48%, and a net profit attributable to the parent company of 664 million yuan, a year-on-year increase of 6.64%. In terms of business, the company’s PCB business achieved a revenue of 20.495 billion yuan, an increase of 9.2% year-on-year. Affected by the rise of raw material costs, the gross profit margin decreased by 1.48 PCT to 15.50% compared with 2020. The company’s PCB business continued to expand production and has sufficient momentum for future development; The revenue of LCD module was 5.164 billion yuan, with a year-on-year increase of 26.3%, and the gross profit margin was 8.16%, a decrease of 4.24 PCT compared with 2020; The revenue of LED display devices was 2.604 billion yuan, with a year-on-year increase of 20.4%, and the gross profit margin was 18.31%, with a year-on-year increase of 3.97pct. The company actively promoted Mini LED products. At present, it has realized sales, and has high growth in the positive customer expansion in the future; In 2021, the revenue of precision component products was 34.27%, with a year-on-year increase of 14.5%, and the gross profit margin was 15.43%, with a year-on-year decrease of 1.6pct. The company in the field of precision components actively expanded its products in the field of 5g and new energy vehicles. It is expected that the volume of precision component products will continue.
The gross profit margin rebounded in 2022q1, and the net profit attributable to the parent company increased. In 2022q1, the company achieved a revenue of 7.312 billion yuan, a year-on-year decrease of 2.61%, and the net profit attributable to the parent company was 364 million yuan, a year-on-year increase of 48.64%. The company’s gross profit margin in the first quarter was 14.12%, a year-on-year decrease of 0.25 PCT. The high increase in the company’s net profit attributable to the parent company was mainly due to better cost control compared with the same period last year. The sales expense ratio / management expense ratio in the first quarter of 2022 was 0.85%/3.20% respectively, a year-on-year decrease of 0.79pct/0.78pct compared with Q1 of 2021.
Actively lay out the field of new energy vehicles and cultivate new growth points in the future. The company actively cooperates with customers in the new energy vehicle industry to develop product solutions. In 2021, the operating revenue of the new energy vehicle industry increased by 120% year-on-year, further strengthened R & D and accelerated forward-looking layout. At the same time, the company’s headquarters has specially established the ne strategic department to actively seek the application and breakthrough of future products in the electrification and intellectualization of new energy vehicles, strive to expand relevant customers in the industry and cultivate new profit growth points of the company.
Investment suggestion: we estimate that the operating revenue of the company from 2022 to 2024 will be 36.361 billion yuan, 41.332 billion yuan and 46.582 billion yuan respectively, with a year-on-year increase of 14%, 14% and 13%, and the comprehensive gross profit margin will be 15.97%, 16.41% and 16.68%. The net profit attributable to the parent company was 2.406 billion yuan, 2.987 billion yuan and 3.475 billion yuan respectively, with a year-on-year increase of 29%, 24% and 16%. With reference to the average valuation of comparable companies in 2022 of 19.87 times, considering the industry status and performance flexibility of the company, the company was rated as “buy” for the first time.
Risk tips: 1. The downstream demand is less than expected; 2. The new capacity is less than expected; 3. Industry competition intensifies; 4. Price fluctuation of raw materials; 5. The use information of the research report is not updated in time
