\u3000\u3 China Vanke Co.Ltd(000002) 436 Shenzhen Fastprint Circuit Tech Co.Ltd(002436) )
Point of view:
Events
In 2021, the company realized an operating revenue of 5.040 billion yuan, with a year-on-year increase of 24.92%; The net profit attributable to the parent company was 621 million yuan, a year-on-year increase of 19.16%; The net profit attributable to the parent company after deduction was 591 million yuan, an increase of 102.46% year-on-year; The gross profit margin was 32.17%, with a year-on-year increase of + 1.24pcts.
The newly-built production capacity was gradually released, and all business segments showed a good development trend
The company’s performance is in line with expectations, and the annual sales revenue has increased steadily. Under the background of the rise in the price of raw materials, the gross profit margin has continued to increase. Specifically:
① the company’s PCB business maintained a steady growth, with a revenue of 3.794 billion yuan (accounting for 75% of revenue), a year-on-year increase of 22.95%, a gross profit margin of 33.13%, and a year-on-year increase of + 0.56pcts. The company continues to promote product upgrading and breakthrough of strategic key customers to improve delivery, yield and operating efficiency. At the same time, due to the small impact of raw material prices on sample and small batch sectors, the company has achieved a rare increase in gross profit margin in the industry in 21 years under the background of rising raw material prices. From the perspective of subsidiaries: on the basis of maintaining stable operation, Yixing Silicon Valley achieved an annual revenue of 674 million yuan, a year-on-year increase of 66.39%, and a net profit of 632245 million yuan, a year-on-year increase of 79.68%; The European market performed well. Fineline seized the opportunity of European economic recovery and realized a revenue of 1.289 billion yuan, a year-on-year increase of 28.83%, and a net profit of 114 million yuan, a year-on-year increase of 51.61%.
② the company’s semiconductor business realized a revenue of 1.083 billion yuan (revenue accounted for 18%), a year-on-year increase of 29.19%, and a gross profit margin of 24.04%, a year-on-year increase of + 2.84 PCTs. Among them, IC packaging substrate business showed a pattern of booming production and sales, with a revenue of 667 million yuan, a year-on-year increase of 98.28%, a gross profit margin of 26.35%, and a year-on-year increase of + 13.35 PCTs. The overall production / sales rate of the base is about 960000 square meters, and the overall production / sales rate is maintained in Guangzhou. In terms of customer development, taking memory chips as the main direction, we have established cooperative relations with mainstream customers at home and abroad. In terms of capacity expansion, Zhuhai Xingke is in the stage of plant decoration and production line installation and commissioning, and is expected to be put into operation in the second quarter of 2022. The annual gross profit margin of PCTs in Guangzhou fell by -3.703 billion yuan, while the annual gross profit margin of PCTs in Guangzhou fell by -3.703 billion yuan year-on-year. Among them, harbor achieved a revenue of 360 million yuan, a year-on-year decrease of 7.33%, and a net profit of 382662 million yuan, a year-on-year increase of 29.79%. With the gradual release of production capacity in Guangzhou base and the improvement of delivery date and yield index, the company’s semiconductor test board business is expected to return to the growth track in 2022.
③ in addition to the overall gross profit margin + 1.24pcts, the period expense rate was also -1.87pcts, resulting in a significant increase in the company’s net profit. Among them, the sales expense rate was -0.41pcts, the management expense rate was -0.33pcts, the R & D expense rate was 0.18 percentage points, the financial expense rate decreased by 0.95 percentage points, and the operating efficiency of the company was further improved.
In the golden track of IC carrier, the future growth can be expected
Looking forward to 2022, the company’s IC carrier business is expected to continue for another 21 years. According to prismark’s prediction, at present, the domestic IC carrier market accounts for only 5%, and the compound growth rate of global IC carrier output value from 2020 to 2026 is 13%. Because IC carrier board has strong barriers in technology, capital, customers and other aspects, it is difficult to enter the market. Therefore, the industry has been controlled by large international manufacturers for a long time. At present, Xinxing electronics, ibiden and Samsung Electromechanical, the world’s top three suppliers, account for about 36% of the total market, while the domestic IC carrier industry started relatively late. Now, the rising demand and shortage of supply are providing it with a good opportunity to rise. Due to the extremely high barriers in the field of ABF carrier sector, except for the company, only Shennan Circuits Co.Ltd(002916) , Zhuhai Yueya are deploying in China. With the increasing demand of PC, server and 5g base station for high computing power IC, the supply of ABF carrier continues to fall short of demand. Xinxing electronics has said that the shortage of ABF carrier sectors may not be alleviated until 2025. We are optimistic about the rapid growth of IC carrier business under the dual logic of domestic substitution and long-term tight global supply.
Investment advice
Investors are advised to pay attention to the investment opportunities brought by the profit realization of IC carrier board. We expect the net profit attributable to the parent company from 2022 to 2024 to be RMB 721, 892 and 1121 million, with corresponding P / E ratios of 15, 12 and 10 times.
Risk tips
The downstream demand of PCB was lower than expected, and the expenditure of staff and site construction of new FCBGA packaging substrate business dragged down the profitability.
