\u3000\u30 Fawer Automotive Parts Limited Company(000030) 31 Hebei Sinopack Electronic Technology Co.Ltd(003031) )
Event: the company released the annual report of 2021 and the first quarterly report of 2022. In the 21st year, the revenue was 1.014 billion yuan (YoY + 24.21%), the net profit attributable to the parent was 122 million yuan (YoY + 23.96%), and the non net profit deducted was 107 million yuan (YoY + 23.39%). In addition, the Q1 revenue in 2022 was 292 million yuan (YoY + 30.93%), the net profit attributable to the parent was 35.65 million yuan (YoY + 26.05%), and the non net profit deducted was 312936 million yuan (YoY + 16.92%), and the performance was in line with expectations.
The company’s revenue and net profit increased steadily in 2021
In 2021, the company saw a high growth in consumer electronics ceramics and a steady growth in communication device ceramics. 1) In the field of communication devices: the revenue is 725 million yuan (+ 13.04%), and the gross profit margin is 29.52% (- 1.6pct). Under the background of the slowdown of the downstream Telecom Optical module market, we believe that the increase of the company’s share is the main reason for the steady growth of revenue; 2) Industrial laser field: the revenue is 5.2645 million yuan (- 83.14%). The company’s laser shell competition is relatively fierce and the gross profit is low. The company’s initiative to adjust the market layout leads to the reduction of this business; 3) With the construction of electronic projects, the gross revenue increased by 2.2% and the gross profit margin increased by 2.2% with the increase of investment and raising of electronic projects (+ 86.3 billion PC); 4) Automotive electronic parts: the revenue was 902377 million yuan (+ 23.26%), with a stable growth.
Quarter by quarter: the Q4 revenue of 21 years was 218 million yuan (+ 3.81%), and the net profit attributable to the parent company was 217645 million yuan (+ 21.65%). The supply chain capacity constraints caused by the global epidemic and macro factors had a certain impact on the industry; The Q1 revenue of 22 years was 292 million yuan (+ 30.93%), and the net profit attributable to the parent company was 35.65 million yuan (+ 26.05%), with sufficient orders and continuous improvement of production capacity.
Good cost control and high R & D investment
In the context of tight supply chain, the gross profit margin of the company in 21 years decreased slightly by 0.96 PCT year-on-year; In addition, the company’s expense rate increased by only 0.13pct during the period, and the expense control was good. Among them, the rates of sales / management / R & D / financial expenses increased by -0.20/0.57/0.61/ -0.85pct respectively. The company maintains high R & D investment, enhances core competitiveness and lays the foundation for long-term growth in the future.
The increase of inventory is prepared, and Q1 contract liabilities confirm the increase of orders
The company’s prepayment increased from 18.31 million at the end of the year 21 to 37.04 million at the end of the first quarter of the year 22, and the inventory increased from 259 million at the end of the year 21 to 283 million at the end of the first quarter of the year 22, indicating that the company actively prepared goods to make full preparations for business expansion. In addition, the company’s contract liabilities increased from 23.19 million at the end of the year 21 to 41.77 million at the end of the first quarter of the year 22, confirming the adequacy of new orders.
The major shareholder, CLP No. 13 Research Institute, continued to empower and cut into the gallium nitride track to open the second growth curve
The controlling shareholder of the company is CETC 13 Institute, which is a comprehensive semiconductor core electronic device research unit with scale, technology and perfect supporting structure in China. The company is its only and important listing platform. On January 16, 2022, the company announced that it planned to issue shares to inject communication assets, integrate the industrial chain within the controlling shareholders, cut into the gallium nitride chip track, and is expected to open the second growth curve.
Investment suggestion: as the leader of China’s precision electronic ceramic shell, the company is backed by CLP No. 13 Institute, and fully enjoys the downstream high boom transmission and the wave of domestic substitution. Combined with the annual report performance in 2021, considering the slowdown in the optical device field, which accounts for a large proportion, and the company’s initiative to reduce the highly competitive industrial laser ceramic business, we adjusted the profit forecast. If asset injection is not considered, we predict that the net profit of the company in 22-24 years will be 157 million yuan, 193 million yuan and 230 million yuan respectively, and the corresponding PE will be 74 / 60 / 50 times respectively, maintaining the “overweight” rating.
Risk tips: risks related to international trade friction, increased market competition, rising raw material prices and technological upgrading.
