\u3000\u30 Xuchang Ketop Testing Research Institute Co.Ltd(003008) 11 Poco Holding Co.Ltd(300811) )
Company announcement
On April 26, the company released the first quarter report of 2022, realizing an operating revenue of 203 million yuan, a year-on-year increase of 49.94%; The net profit attributable to the parent company was 322967 million yuan, a year-on-year increase of 61.14%.
Comments
Q1 performance slightly exceeded expectations and profitability improved significantly. Revenue and profit increased by 49.94% and 61.14% respectively year-on-year; The gross profit margin and net profit margin were 34.97% and 15.95% respectively, with a year-on-year increase of 1.92pct and 3.77pct respectively. The epidemic did not reduce the company’s business growth, mainly due to the company’s market penetration in the fields of photovoltaic, new energy vehicles, ups and so on. The improvement of profitability is mainly due to 1) the price reduction of upstream raw material silicon compared with Q4 of last year, and the gross profit margin in Q1 has increased month on month; 2) With the upgrading of product structure, the penetration rate of NPC new materials in the photovoltaic field will be increased, and the product unit price will be increased by 15% compared with the original. It is expected that the profitability of NPC new materials will be improved quarter by quarter in 22 years.
Soft magnetic materials benefit from the downstream new energy market in the medium and long term. With the development of new energy industry, inductive components have higher performance requirements in terms of high frequency, high current and AC / DC stability. The soft magnetic material track where the company is located benefits from the strong market demand in the downstream of new energy to open up market space. According to the data of soft metal market, watch has a good growth opportunity of about US $800 million in 2020. In addition, the company upgraded new materials based on its original advantages, adopted NPC to improve product technical barriers, and further created core technical advantages.
New product development and capacity expansion, two wheel drive business development. On the one hand, the company develops new chip inductors, which are applied to CPU / GPU power supply and finally applied to the server market; At present, the pilot test of new products has been completed and a small batch production line has been built, which is expected to create a new growth pole. On the other hand, the company advocates capacity expansion and raises 350 million yuan to build Heyuan production base. It is expected that the capacity will be expanded to 33000 tons / year in 2022.
Investment advice
We estimate that the net profit attributable to the parent company from 2022 to 2024 will be 189 million yuan, 284 million yuan and 388 million yuan respectively, corresponding to 28 times, 18 times and 14 times of the current PE respectively, maintaining the buy rating.
Risk tips
Upstream raw material price rise risk, international relations change risk and production expansion less than expected risk.
