\u3000\u3 China Vanke Co.Ltd(000002) 463 Wus Printed Circuit (Kunshan) Co.Ltd(002463) )
The off-season performance of 2022q1 was steady, and the growth of high-end products was restarted in 2022, maintaining the “buy” rating
The company’s 2022q1 revenue was 1.92 billion yuan, yoy + 9.8%, and the net profit attributable to the parent was 250 million yuan, yoy + 13.0%, deducting non net profit of 240 million yuan, yoy + 17.5%. The profit growth rate was higher than the revenue growth rate. Considering that the 2022q2 epidemic affects the logistics and production of Kunshan factory, we have lowered the profit forecast for 20222024. It is estimated that the net profit attributable to the parent company in 20222024 will be 1.37/20.0/25.4 (the previous value is 1.46/20.0/25.5) billion yuan, the current share price corresponds to EPS of 0.72/1.05/1.34 (the previous value is 0.77/1.06/1.34) yuan, and the current share price corresponds to PE of 15.8/10.8/8.5 times. Considering the high-end trend of the company’s servers, switches and automobile PCBs, the “buy” rating is maintained.
2022q1 increased in the off-season, and 2022q2 epidemic is expected to cause short-term business fluctuations
Considering that Q1 is the off-season of the whole year, the company’s revenue fell by only 4.3% month on month compared with 2021q4, and the growth of core network product orders supports the revenue end to realize the off-season. On the profit side, the gross profit margin of the company reached 26.0% in 2022q1, which increased month on month, QoQ + 0.38pct/yoy + 1.54pct; The net interest rate reached 13.0%, qoq-0.82/yoy + 0.38pct, which was disturbed by many factors such as Spring Festival shutdown, expense accrual and so on. Looking forward to 2022q2, the company’s Kunshan plant is affected to a certain extent and the logistics transportation is hindered. The company is expected to carry out orderly production through closed-loop management and other measures, and the operation team will support customer needs with finished product inventory and Huangshi plant. From the perspective of product structure, the orders of products on the core network side are strong, and automotive products are expected to boost profits with the development of intelligence and the decline of raw material costs. It is expected that in the second half of 2022, with the advent of the peak operating season, the productivity and productivity will increase, and the profits will continue to rise.
Implement the core strategy of electronic application and differentiation of automobile
The server and automobile PCB market of the company’s card position will usher in a growth higher than that of the industry as a whole in the future. According to prismark’s prediction, from 2021 to 2026, the compound growth rate of the server / data storage product market will be 10.0%, and the compound growth rate of the automobile PCB market will be 7.5%. In the field of data communication, 400g switch products have been produced in batch, and pre800g products are produced in small batch; Mass production of 4D domain controller, vehicle borne electronic controller, vehicle borne electronic controller, etc; In 2021, the company expanded high-speed interposer printed circuit board in key R & D projects, which helps to develop products in high-performance computing and other fields.
Risk tip: the rising cost of raw materials, intensified competition in automobile PCB, lower than expected demand for high-end digital communication, exchange losses and trade disputes lead to weak export orders.
