\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 04 Hangzhou Chang Chuan Technology Co.Ltd(300604) )
Key investment points
Performance overview: in 2021, the company’s revenue was 1.51 billion yuan, a year-on-year increase of 88.0%, and the net profit attributable to the parent company was 220 million yuan (the performance forecast was 180230 million yuan), a year-on-year increase of 157.2%, deducting the net profit not attributable to the parent company of 190 million yuan (the performance forecast was 156206 million yuan), a year-on-year increase of + 339.6%. The company plans to distribute a cash dividend of 1 yuan (including tax) for every 10 shares to all shareholders.
Revenue and profit increased rapidly, and the proportion of testing machine business increased. Benefiting from the upward capital expenditure of wafer and packaging test caused by the lack of core downstream, the company’s revenue and performance continued to increase. Quarter by quarter, 21q4 achieved a revenue of 440 million yuan, a year-on-year increase of + 45.8%, a net profit attributable to the parent company of 88.73 million yuan, a year-on-year increase of + 80.0%, a gross profit margin of 52.8%, a year-on-year increase of + 3.3pp, a month on month increase of + 5.2pp, a net profit margin of 18.9%, a year-on-year increase of + 2.6pp and a month on month increase of + 7.9pp. In terms of business, the revenue of the company’s testing machine was 490 million yuan, accounting for 32.4%, year-on-year + 10.2pp, with a gross profit margin of 67.7%. The revenue of the sorting machine was 940 million yuan, accounting for 62.0%, year-on-year – 7.6pp, with a gross profit margin of 42.7%. By region, the company’s domestic revenue is 990 million yuan, accounting for 65.7%, and its overseas revenue is 520 million yuan, accounting for 34.3%. During the reporting period, the subsidiary Hangzhou Changchuan intelligent manufacturing officially started operation and started the construction of the intelligent manufacturing production base project of Hangzhou Changchuan Intelligent Manufacturing Co., Ltd., so as to further strengthen its order receiving ability.
Profitability continued to improve, and the net interest rate reached a new high in recent three years. In 2021, the company’s sales / management / R & D / financial expense ratio was 9.1% / 7.4% / 21.9% / – 0.2% respectively, with a year-on-year rate of – 1.8pp / – 2.9pp / – 1.4pp / – 1.4pp, and the total expense ratio during the period was 38.23%, with a year-on-year rate of – 7.4pp. Under the condition of ensuring more than 20% of high R & D investment, the company’s expense control ability continued to improve and promote the continuous improvement of profitability. In 2021, the gross profit margin of the company was 51.8%, year-on-year + 1.7pp, and the net profit margin was 14.7%, year-on-year + 4.1pp, of which the net profit margin reached a new high in recent three years.
Equity incentive binds the core team and plans to acquire exis to strengthen the business layout of turret sorter. On March 11, the company granted 4.2 million restricted shares to 156 core personnel, accounting for 80.77% of the total restricted shares granted and 0.69% of the total share capital. The grant price was 25.17 yuan / share. The performance assessment objective of this incentive plan is based on the operating income in 2021, and the growth rate from 2022 to 2024 shall not be less than 25%, 56% and 95% respectively. The company plans to issue shares in the near future to raise supporting funds with a total amount of no more than 280 million yuan, which is mainly used to purchase 97.67% equity of Changyi Technology (consideration of 274 million yuan). Changyi technology holds 100% equity of exis, whose core product is turret sorter, and its downstream customers include well-known semiconductor companies such as Broadcom, NXP semiconductor, MPs, Byd Company Limited(002594) semiconductor, Shanghai Awinic Technology Co.Ltd(688798) and seal testing enterprises such as rimoonlight, united technology, Tongfu Microelectronics Co.Ltd(002156) , Tianshui Huatian Technology Co.Ltd(002185) . After the merger and acquisition, it is expected to give full play to the high synergy between the two in products, sales channels and R & D technology, help Hangzhou Chang Chuan Technology Co.Ltd(300604) realize the full coverage of products in the sorting field of gravity sorter, translation sorter and turret sorter, further enhance the platform ability of the company and improve the profitability of the company.
The layout of the rear test business is comprehensive, and the high-end SOC tester is expected to help the company grow at a high speed. The company focuses on semiconductor back channel testing equipment, with testing machine as the core, and the development of sorting machine, probe table, AOI and other categories. The gross profit margin of testing machine business is high, and there is a large space for domestic substitution in SOC, digital, storage and other testing machine fields. The company’s testing machine business includes high-power testing machine, analog testing machine, digital testing machine, etc., and continues to focus on the research and development of probe platform, digital testing machine and other related equipment, and has received a number of government subsidies in the field of SOC testing. In the future, the company will benefit from the large volume of high-end testing machine business such as digital and SOC, and the order revenue is expected to continue to grow at a high speed.
Profit forecast: benefiting from the deepening of the company’s platform layout and the large-scale expectation of high-end digital and SOC testing machines, the company’s net profit attributable to the parent company is expected to be RMB 510 / 80 / 11.1 billion from 2022 to 2024, corresponding to pe36 / 23 / 17 times, maintaining the “buy” rating.
Risk tip: the industry competition intensifies, the promotion of new products is less than expected, and the downstream demand is less than expected.
