\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 04 Hangzhou Chang Chuan Technology Co.Ltd(300604) )
Event: the company released its 2021 annual report and achieved a revenue of 1.511 billion yuan, a year-on-year increase of 88%; The net profit attributable to the parent company was 218 million yuan, a year-on-year increase of 157.17%; Net profit deducted from non parent company was 193 million yuan, with a year-on-year increase of 339.61%.
The annual performance increased significantly year-on-year, and the R & D investment continued to increase: the company’s annual revenue and net profit attributable to the parent company increased significantly year-on-year, mainly benefiting from the high prosperity of the integrated circuit industry, the strong demand of downstream customers for the company’s equipment and the rapid promotion of domestic substitution. In addition, the company has developed products such as probe table and digital testing machine during the period, continuously expanded the product line, and actively explored the medium and high-end market. In terms of revenue structure, the revenue of sorting machine and testing machine in 2021 was 936 million yuan and 489 million yuan respectively, with a year-on-year increase of + 67.59% and 174.33% respectively; The gross profit margin was 42.65% and 67.67% respectively, with a year-on-year increase of + 0.22pcct and -2.23pct respectively. In terms of R & D investment, in 2021, the company’s R & D expenditure was 330 million yuan, a year-on-year increase of + 76.47%, accounting for 21.86% of revenue. R & D investment continued to grow rapidly. In terms of Q4 single quarter, Q4’s revenue was 443 million yuan, a year-on-year increase of + 45.75% and a month on month increase of + 12.15%; The net profit attributable to the parent company was 89 million yuan, with a year-on-year increase of + 79.55% and a month on month increase of + 122%; The gross profit margin and net profit margin were 52.77% and 18.88% respectively, both year-on-year and month on month. The performance of 21q4 company continued the high growth trend, with a significant increase year-on-year and month on month.
After the comprehensive layout of the test equipment, SOC is expected to open up growth space: the company is a leading local supplier of semiconductor test equipment, with complete product lines, covering testing machines, sorting machines and probe platforms, and cut into the front wafer testing through the acquisition of STI. According to semi data, among the later testing machines, SOC, storage, analog and RF testing machines accounted for 58%, 22.5%, 15% and 4.5% respectively in 2020. China took the lead in making a breakthrough in analog testing machines, and the localization rate has reached a high level, but it is basically blank in SOC, storage and RF testing machines. The company has actively deployed SOC testing machines, and its products have been recognized by major customers in China. It is expected to open up new growth space in the future.
The company plans to acquire Changyi technology with undervalued value, and further enrich the category of sorters: the company plans to purchase 976687% equity of Changyi technology through issuing shares. After estimation, the estimated value of 100% equity of Changyi technology is 280 million yuan. Changyi technology holds 100% equity of exis. Exis’s main business is to design and manufacture suitable test equipment and solutions for the test departments in the semiconductor and automation industry. Its core product is turret sorter. Its downstream customers include Broadcom, NXP semiconductor, MPs, Byd Company Limited(002594) semiconductor, Shanghai Awinic Technology Co.Ltd(688798) and other well-known semiconductor companies, as well as Sunmoon, united technology, Tongfu Microelectronics Co.Ltd(002156) , Tianshui Huatian Technology Co.Ltd(002185) , and other seal testing enterprises. Changyi technology had a revenue of 206 million yuan and a net profit of 47 million yuan in 2020, and a revenue of 249 million yuan and a net profit of 67 million yuan in the first three quarters of 2021. The valuation of this acquisition is low, corresponding to 1.36 times and 5.96 times of PS and PE in 2020 respectively. This acquisition will not only help listed companies to enrich product types and realize full product coverage of gravity sorter, translational sorter and turret sorter, but also improve the profitability and sustainable development ability of the company through the synergy between listed companies and exis in sales channels, R & D technology and so on.
Investment suggestion: we estimate that the company’s revenue from 2022 to 2024 will be 2.395 billion yuan, 3.241 billion yuan and 4.064 billion yuan respectively, and the net profit attributable to the parent company will be 412 million yuan, 636 million yuan and 807 million yuan respectively, maintaining the “Buy-A” investment rating.
Risk tip: downstream demand attenuation risk, market competition risk, product R & D is less than expected, and customer expansion is less than expected.
