\u3000\u3 Guocheng Mining Co.Ltd(000688) 383 Shenzhen Xinyichang Technology Co.Ltd(688383) )
On April 25, Shenzhen Xinyichang Technology Co.Ltd(688383) released the annual report of 2021 and the first quarterly report of 2022. The company achieved a revenue of 1.197 billion yuan in 2021, with a year-on-year increase of 69.9%; The net profit attributable to the parent company was 232 million yuan, a year-on-year increase of 115.78%. In the first quarter of 2022, the revenue reached 351 million yuan, a year-on-year increase of 74.27%; The net profit attributable to the parent company was 71 million yuan, an increase of 84% year-on-year.?
All business lines grew together, and the first quarter report exceeded expectations. In the 2021 annual report, the company achieved a revenue of 1.197 billion yuan, a year-on-year increase of 69.9%, mainly due to the synchronous growth of new and old business lines, including miniled solid crystal machine of 200 million yuan, a year-on-year increase of 421.87%, semiconductor solid crystal machine of 215 million yuan, a year-on-year increase of 890.23%. In addition, traditional LED solid crystal machine of 493 million yuan and other businesses of 289 million yuan, including the consolidated income of kaijiu of 23 million yuan. On the profit side, the company’s annual comprehensive gross profit margin reached 42.63%, of which the gross profit margin of miniled solid crystal machine was as high as 66.32%, that of semiconductor solid crystal machine was 46.08%, and that of traditional LED solid crystal machine was 37.92%. With the continuous growth of new businesses with high gross profit margin, the company’s profit is expected to further thicken.
In terms of the first quarterly report of 2022, the company continued to maintain the growth momentum of various businesses, and achieved a net profit of 71 million yuan, exceeding the upper limit of the early performance forecast (65-70 million yuan).
Miniled‘s downstream capital expenditure increased rapidly, and its products continued to iterate to maintain leading competitiveness. The company is a leading manufacturer of LED solid crystal equipment in China, benefiting from the development of display technology and the continuous investment of downstream manufacturers. Arizton predicts that the global Mini / microled market will exceed US $1 billion in 2022, with an average annual growth of more than 145%. According to the incomplete statistics of senior engineering led, the new investment in mini / microled and other fields exceeded 75 billion yuan in 2021. Looking forward to 2022, the company expects miniled to have a good performance in the small and medium-sized screen market, and products such as laptop, tablet and E-sports display are expected to give priority to large-scale production.
In the field of miniled solid crystal machine, Shenzhen Xinyichang Technology Co.Ltd(688383) continues to carry out technical iteration, update equipment performance and maintain leading edge. The company expects to increase the equipment transfer rate to 180K / h within this year.
The semiconductor business grew faster than expected, and the new products of wire bonding machine have been verified by customers. Semiconductor packaging equipment is an important growth point of the company. According to the data of China business intelligence network, in 2021, the market scale of China’s semiconductor packaging and testing equipment exceeded 353 billion yuan. The company’s semiconductor products in the early stage were mainly power device packaging equipment. In 2021, the company completed the acquisition of kaijiu automation, integrated resources and enhanced the business capacity of semiconductor equipment. At present, the company and its subsidiary kaijiu are integrated smoothly in all aspects. While maintaining the sales of optical communication wire bonders and other equipment, kaijiu cooperates with the company in the overall layout and research and development of LED and semiconductor wire bonders. The company also promotes kaijiu to strengthen R & D through the support of capital, manpower, technology and other resources. At present, semiconductor welding line equipment is in customer verification.
Investment suggestion: we expect the company’s revenue from 2022 to 2024 to be RMB 1.548/19.70/2.456 billion respectively, and the net profit attributable to the parent company to be RMB 304/4.08/549 million respectively. The PE corresponding to the current share price is 24 / 18 / 13 times respectively. We are optimistic about the growth space of the company in the field of miniled and semiconductor packaging equipment, and maintain the “recommended” rating.
Risk warning: product verification is not as expected; Cyclical fluctuations in downstream industries; Market competition intensifies.
