\u3000\u30 Fawer Automotive Parts Limited Company(000030) 31 Hebei Sinopack Electronic Technology Co.Ltd(003031) )
Key investment points
Event: the company issued the annual report of 2021 and the report of the first quarter of 2022. In 2021, the company achieved a revenue of 1.01 billion yuan, a year-on-year increase of + 24.2%, and a net profit attributable to the parent company of 120 million yuan, a year-on-year increase of + 24%; Among them, Q4 achieved a revenue of 220 million yuan in a single quarter, a year-on-year increase of + 3.8%, and the net profit attributable to the parent company was 21.765 million yuan, a year-on-year increase of + 21.7%. In the first quarter of 2022, the revenue was 290 million yuan, a year-on-year increase of + 30.9%, and the net profit attributable to the parent company was 40 million yuan, a year-on-year increase of + 26.1%.
Q1 performance increased by 63.8% month on month, and the gross profit margin remained stable as a whole. In 2022q1, the company achieved a revenue of 290 million yuan, an increase of 33.9% month on month, and the net profit attributable to the parent company was 35.649 million yuan, an increase of 63.8% month on month. In 2021, the sales volume of ceramic tubes and shells reached 34.635 million, with a year-on-year increase of 27.7%. In 2021, the gross profit margin of the company was 28.9% and the net profit margin was 12%; In 2022q1, the gross profit margin reached 29.2% (mom + 0.84pp), and the net profit margin reached 12.2% (mom + 2.2%). The expense rate remained stable. In 2021, the sales expense rate was 0.6%, the management expense rate was 3.8%, the R & D expense rate was 13.9%, and the financial expense rate was – 0.2%.
Consumer electronics business is growing rapidly, and 400g optical module ceramic shell is supplied in batch. In 2021, the company achieved a revenue of 720 million yuan (year-on-year + 13%) for electronic ceramic shells for communication devices, 5.265 million yuan (year-on-year – 83.1%) for industrial lasers, 90 million yuan (year-on-year + 23.3%) for automotive electronic parts, and 120 million yuan (year-on-year + 433%) for consumer electronic ceramic shells and substrates. Among them, the revenue of consumer electronics business in 2021h1 was only 40.866 million yuan, and the revenue in the second half of the year was 80.769 million yuan, an increase of 97.6% over the first half of the year. In 2021, the demand of consumer electronics such as sound meter, sensor and Communication Electronics expanded rapidly. The company seized the opportunity to realize mass production of consumer shells. In 2021, the company obtained 8 patents, 400g optical module ceramic shell was supplied in batch, and X-band and Ku band high-power transistor shell was produced in small batch.
Backed by the 13th Research Institute of CETC, it acquired gallium nitride RF chip business. The company plans to purchase the RF chip business of 13 gallium nitride communication base stations by issuing a shares, and all the equity of Hebei Bowei and Beijing Guolian Wanzhong held by shareholders such as CETC. The total assets of the three parts are about 2.1 billion yuan. In October of 2021, the total revenue is 1.31 billion yuan and the total net profit is 250million yuan. According to the public information, the 13 institutes focus on the design and production of gallium nitride RF chips. Bowei is mainly engaged in the design, packaging and testing of gallium nitride RF chips and devices. Guolian Wanzhong is mainly engaged in the design and testing of gallium nitride RF chips and silicon carbide power chips, Hebei Sinopack Electronic Technology Co.Ltd(003031) after acquiring three parts of business, it is expected to integrate into an IDM enterprise of the third generation semiconductor, It forms a synergistic effect with the main business of the original ceramic shell, and is expected to open the second growth curve in the future.
Profit forecast and investment suggestions. It is estimated that the company’s EPS from 2022 to 2024 will be 1.29 yuan, 1.72 yuan and 2.27 yuan respectively, and the corresponding PE will be 61 times, 46 times and 35 times respectively, maintaining the “buy” rating.
Risk warning: the R & D progress is less than expected and fails to meet the needs of downstream customers; Trade friction risk; Industry competition intensifies risks, etc.
