\u3000\u3 Guocheng Mining Co.Ltd(000688) 383 Shenzhen Xinyichang Technology Co.Ltd(688383) )
Event: the company released its 2021 annual report on April 25, 2022. During the reporting period, the company realized an operating revenue of 1.197 billion, a year-on-year increase of 69.9%; The net profit attributable to the parent company was 232 million, with a year-on-year increase of 115.78%; The basic earnings per share was 2.48 yuan / share, a year-on-year increase of 77.14%. The company plans to distribute a cash dividend of 5 yuan (including tax) for every 10 shares to all shareholders. The company released the first quarterly report of 2021 on April 25, 2022. During the reporting period, the operating revenue was 351 million, with a year-on-year increase of 74.27%; the net profit attributable to the parent company was 71 million, with a year-on-year increase of 84%.
High performance of solid crystal leaders and growth driven by multiple products: the company is mainly engaged in the R & D, production and sales of intelligent manufacturing equipment in LED, capacitor, semiconductor, lithium battery and other industries. At present, it has become a leading enterprise in the field of LED solid crystal machine and capacitor aging test intelligent manufacturing equipment in China. According to yole development, in 2018, the market share of the company in the global solid crystal equipment was 6%, ranking third in the global solid crystal equipment market. In the field of LED and semiconductor solid crystal machine, the company has mastered high-speed and accurate motion control technology, new dual arm synchronous operation technology, micro chip transfer technology and other core technologies. According to the 2021 annual report, during the reporting period, the company’s mini solid crystal machine achieved an operating revenue of 2004672 million yuan, a year-on-year increase of 421.87%, the semiconductor solid crystal machine achieved an operating revenue of 2149119 million yuan, a year-on-year increase of 890.23%, the capacitor aging test equipment achieved an operating revenue of 2080378 million yuan, a year-on-year increase of 51.69%, and the lithium battery equipment achieved an operating revenue of 30.969 million yuan, a year-on-year increase of 67.04%, a significant increase over the same period last year.
The mini LED industry is growing rapidly and the prosperity of solid crystal equipment is rising: Mini & Micro LED is regarded as the mainstream and development trend of LED display technology in the future. According to arizton, the global Mini & Micro LED market will exceed US $1 billion in 2022, with an average annual growth of more than 145%, and the market is expected to usher in rapid growth in the future. According to yole development data, the global solid crystal machine market in 2018 was US $979 million, and the market scale is expected to be US $1389 million in 2024. The 2021 annual report disclosed that during the reporting period, the gross profit margin of the company’s Mini led solid crystal machine was 66.32%, an increase of 5.24 percentage points over the previous year, and the profit level increased significantly compared with the traditional LED solid crystal machine. According to the investor activity record in February 2022, the company expects the mini LED equipment to grow by 50% in 2022.
The semiconductor market continues to expand and lithium battery products are gradually released: in recent years, the company’s semiconductor solid crystal equipment customers have been successfully introduced, and the products have been recognized by the industry. The 2021 annual report disclosed that during the reporting period, the gross profit margin of the company’s semiconductor solid crystal machine was 46.08%. According to the investor activity record in February 2022, the company expects semiconductor equipment to grow by 50% in 2022. The annual report disclosed that through the acquisition of kaijiu automation, the company has actively developed LED and semiconductor wire bonding machines. At present, semiconductor wire bonding equipment is communicating and verifying with customers. In the field of lithium battery equipment, the company has started to enter since 2017, and its products now cover lithium battery equipment such as winding machine, film making machine, film making and winding machine. According to the 2021 annual report, during the reporting period, the gross profit margin of lithium battery equipment was 33.49%, an increase of 11 percentage points over the previous year. In addition, the company is also simultaneously enriching R & D reserves. According to the 2021 annual report, during the reporting period, the company invested 764999 million yuan in R & D, an increase of 55.19% over the same period last year, adding 83 patents and 36 software copyrights. In the future, the company will continue to promote its development in many fields by relying on the advantages of original core parts R & D and self-production.
Investment suggestion: we estimate that the company’s revenue from 2022 to 2024 will be 1.586 billion yuan, 2.077 billion yuan and 2.75 billion yuan respectively, and the net profit attributable to the parent company will be 305 million yuan, 401 million yuan and 539 million yuan respectively, maintaining the “Buy-A” investment rating.
Risk tip: R & D progress is less than expected, product introduction is less than expected, and downstream demand growth is less than expected.
