\u3000\u30 Beijing Telesound Electronics Co.Ltd(003004) 08 Chaozhou Three-Circle(Group) Co.Ltd(300408) )
Events
Chaozhou Three-Circle(Group) Co.Ltd(300408) released the annual report for 2021: in 2021, the company achieved an operating revenue of 6.218 billion yuan, a year-on-year increase of 55.69%; The net profit attributable to the parent company was 2.011 billion yuan, a year-on-year increase of 39.68%; The net profit deducted from non parent company was 1.828 billion yuan, with a year-on-year increase of 46.64%.
Key investment points
Benefiting from the high prosperity of the passive component industry, the company’s revenue maintained rapid growth
Benefiting from the accelerated construction of 5g network, data center and other new infrastructure and the rapid development of artificial intelligence, Internet of things, automotive electronics and other industries, the passive component industry has a high prosperity. In 2021, the company maintained the momentum of rapid development, continued to increase product expansion, and achieved a significant increase in production and marketing scale. In terms of business segments, the company’s revenue in electronic components and materials, communication components and semiconductor components in 2021 was RMB 2.103 billion, RMB 1.760 billion and RMB 1.170 billion respectively, and the revenue of main business accounted for 33.82%, 28.30% and 18.82% respectively. Among them, the sales of electronic components, materials and semiconductor components increased significantly, with a year-on-year growth rate of 59.55% and 76.23%. In terms of profitability, the gross profit margin and net profit margin of the company in 2021 were 44.26% and 26.38% respectively, of which the gross profit margin of the company in electronic components and materials, communication components and semiconductor components were 53.53%, 49.98% and 37.58% respectively. The overall gross profit margin remained at a high level and relatively stable. In terms of expenses, affected by the increase of personnel salary and other administrative expenses, the company’s sales expenses and administrative expenses increased by 43.70% and 51.38% year-on-year in 2021. There is no significant change in the company’s financial expenses. In terms of R & D expenses, the company continued to increase R & D investment to improve the core competitiveness of products and meet customer needs. In 2021, the company’s R & D expenses were 419 million yuan, a year-on-year increase of 75.04%.
Accelerate the expansion of industrial scale, take technological development as the core, and give full play to the advantages of industrial synergy
Under the background of trade friction, the supply chain of electronic components has accelerated its transfer to China and continued to drive the market scale of electronic components. According to the data of China electronic components industry association, in 2020, the global MLCC market scale increased by 11.1% year-on-year to 101.7 billion yuan. It is expected to reach 114.8 billion yuan in 2021, a year-on-year increase of 12.9%, and 149 billion yuan in 2025, with a five-year compound growth rate of 7.9%. According to the prediction of the Ministry of industry and information technology, more than 6 Shenzhen Fountain Corporation(000005) g base stations will be built in 2022, driving the development of the market of communication components such as optical fiber connectors. As a ceramic material platform enterprise with a development history of 50 years, the company fully grasped the opportunity to further increase the R & D and production of electronic components, materials and semiconductor components, continuously optimize the product structure and help the company achieve sustainable development on the basis that the production and sales of optical fiber connector ceramic insert, alumina ceramic substrate and ceramic matrix rank among the top in the world. At the same time, the company continued to expand its industrial scale, built a new production line of alumina ceramic substrate and ceramic packaging base in Deyang, Sichuan in 2021, and continuously improved the regional layout of products. In addition, in 2021, the company completed a new round of fixed increase, raising and investing in the production expansion project of high-capacity series multilayer chip ceramic capacitors with a monthly capacity of 25 billion and the construction project of Shenzhen Sanhuan R & D base. After the completion of the project, the company’s MLCC market share is expected to further improve and thicken the company’s core competitiveness.
Profit forecast
It is predicted that the company’s revenue from 2022 to 2024 will be 7.672 billion yuan, 9.814 billion yuan and 12.125 billion yuan respectively, and the EPS will be 1.10, 1.33 and 1.64 yuan respectively. The corresponding PE of the current stock price will be 23, 19 and 15 times respectively, giving the “recommended” investment rating.
Risk tips
Risk of falling prices of passive components; Market competition intensifies risks; The downstream demand is lower than the expected risk; The construction progress of the expansion project is less than the expected risk.
