\u3000\u3 Guocheng Mining Co.Ltd(000688) 383 Shenzhen Xinyichang Technology Co.Ltd(688383) )
Matters:
The company released its annual report for 2021, which achieved a revenue of 1.197 billion yuan (69.90% YoY) and a net profit of 232 million yuan (115.78% YoY) attributable to shareholders of listed companies. The company plans to distribute a cash dividend of 5 yuan (including tax) for every 10 shares to all shareholders.
Ping An View:
The performance is in line with expectations, and the performance of mini solid crystal and semiconductor solid crystal has increased significantly: the company released the annual report of 2021. In the annual report of 2021, the company achieved a revenue of 1.197 billion yuan (69.90% YoY) and a net profit attributable to shareholders of listed companies of 232 million yuan (115.78% YoY). In 2021, the company’s overall gross profit margin and net profit margin were 42.63% (6.35pctyoy) and 19.34% (4.07pctyoy) respectively. The increase in the company’s gross profit margin was mainly due to the increase in the proportion of mini solid crystal machine revenue, and the company’s performance met expectations. By business: in 2021, the company’s mini solid crystal machine achieved an operating revenue of 200 million yuan, with a year-on-year increase of 421.87% and a gross profit margin of 66.32% (an increase of 5.24pct); The operating revenue of semiconductor solid crystal machine was 215 million yuan, with a year-on-year increase of 890.23% and a gross profit margin of 46.08% (down 3.82pct); The operating revenue of capacitor aging test equipment was 208 million yuan, with a year-on-year increase of 51.69% and a gross profit margin of 31.12% (a year-on-year increase of 2.62 PCT); The operating revenue of lithium battery equipment was 31 million yuan, a year-on-year increase of 67.04%. Expense side: in 2021, the company’s financial expense rate, sales expense rate, management expense rate and R & D expense rate were 0.33% (-0.56pctyoy), 7.26% (1.29pctyoy), 3.30% (-0.01pctyoy) and 6.39% (-0.61pctyoy) respectively. The overall expense rate of the company was relatively stable. As of the annual report of 2021, the company’s accounts receivable reached 567 million yuan (accounting for more than 80% within one year), with a year-on-year increase of 51.89%, and contract liabilities reached 224 million yuan, with a year-on-year increase of 56.68%, reflecting sufficient orders of the company. The company is a leading enterprise in the field of LED solid crystal machine and capacitor aging test intelligent manufacturing equipment in China. With excellent product quality, technological innovation ability and efficient and high-quality supporting service ability, the company has accumulated rich high-quality customer resources and good brand image.
Benefiting from the explosion of minileds, the company’s LED Solid Crystal machines have entered a stage of rapid growth: the company is China’s leading enterprise in LED Solid Crystal machines, and its customers include Hongda Xingye Co.Ltd(002002) 449 , Jingtai Co., Ltd. and other well-known companies, and maintain good cooperation with international well-known manufacturers such as Samsung and yioptoelectronics, 2021 led solid crystal machine accounts for more than 60% of the Chinese market. The company’s LED solid crystal machine revenue is expected to grow rapidly: first, the miniled market is about to break out, and the company’s demand for miniled solid crystal machine is strong. The competitors of miniled solid crystal machine include asmpt and K & S. with price and service advantages, the company is expected to become the first choice for Chinese manufacturers and share the dividends of miniled. Second, the traditional LED solid crystal machine will benefit from the recovery of the LED market and the capacity expansion under the integrated layout of chip factories, and the revenue will grow steadily.
Benefiting from the expansion of semiconductor packaging and testing capacity and the domestic substitution of equipment, the company’s semiconductor solid crystal machine has formed a new increment: the company is a representative enterprise in the field of domestic semiconductor solid crystal machine. Its products are mainly used for power device packaging and gradually develop IC solid crystal machine business. Customers include crystal guide micro, canrui technology, Yangzhou Yangjie Electronic Technology Co.Ltd(300373) , solid technetium electronics and other companies. In July 2021, the company acquired 75% equity of Shenzhen kaijiu automation equipment Co., Ltd. for 45 million yuan, further extending the product range in the field of semiconductor packaging equipment. The company’s semiconductor equipment products benefited from the recovery of the semiconductor sealing and testing market in the short term and the domestic substitution of semiconductor equipment in the long term, becoming a new pole of the company’s performance growth.
Investment rating: we maintain the previous profit forecast and add a 24-year profit forecast. It is expected that the net profit attributable to the parent company from 2022 to 2024 will be 361 million yuan, 466 million yuan and 579 million yuan respectively, and the corresponding PE will be 19 times, 15 times and 12 times respectively. As the leader of China’s solid crystal machine and capacitor aging testing equipment, the company has benefited from the explosion of miniled and the capacity expansion of LED and semiconductor sealing and testing manufacturers in the short term, and from domestic substitution in the long term, with high growth performance. Maintain the company’s “recommended” rating.
Risk tips: 1) the development of miniled market is less than the expected risk. If the development of miniled backlight and direct display market is less than expected, the purchase volume of relevant equipment will be lower than expected, affecting the growth opportunities of relevant equipment of the company. 2) Risk of technical iteration of miniled equipment. At present, there are many mini / mcroled transfer equipment R & D with different technical routes, including competitors. If the company fails to keep pace with the market and new technologies are quickly introduced into the market, it may have an impact on the company’s business. 3) The risk of slowing down the expansion of semiconductor packaging and testing capacity. If the current round of semiconductor packaging and testing capacity expansion slows down, or the domestic substitution of the company’s semiconductor solid crystal machine is less than expected, it will affect the growth opportunities of the company’s semiconductor solid crystal machine.
