\u3000\u3 Guocheng Mining Co.Ltd(000688) 636 Chengdu Zhimingda Electronics Co.Ltd(688636) )
Performance summary: the company]achieved operating revenue of 101 million yuan in the first quarter of 2022, with a year-on-year increase of 86.5%; The net profit attributable to the parent company was 09 million yuan, a year-on-year decrease of 6.6%.
The company’s revenue increased significantly in the first quarter of 2022, and the gross profit margin remained at a high level. 1) From the revenue side, the company’s revenue in the first quarter of 2022 increased by 86.5% year-on-year, mainly due to the significant increase in the company’s orders. At the end of the first quarter of 2022, the company’s orders on hand (including oral orders) were 505 million yuan. 2) From the profit side, the net profit attributable to the parent company in the first quarter of 2022 decreased by 6.6% year-on-year, mainly due to the company’s share based payment of 9.21 million yuan. After excluding the impact of share based payment expenses, the net profit attributable to the parent company was 16 million yuan, an increase of 76.5% year-on-year. The gross profit margin of the company was 55.0%, down from the same period last year. 3) From the expense side, the company’s sales, management and R & D expense rates in the first quarter of 2022 were 8.1%, 11.5% and 26.5% respectively, of which the R & D expense increased by 59.5% year-on-year, mainly due to the increase of R & D personnel and the increase of salary compared with the same period last year.
Strengthen the supply chain guarantee and ensure the stable development of various businesses. Due to the epidemic and geopolitical factors in the first quarter, the company’s raw material supply, product delivery and business expansion were affected. The company continued to strengthen internal management, began strategic goods preparation in 2019 and strengthened supply chain guarantee. In the first quarter of 2022, the impact of the epidemic was overcome, the business was carried out normally and the overall performance achieved significant growth.
Continuous investment in R & D and strong downstream demand. The company continues to invest in the R & D of core technology products, continuously expand the R & D team, expand new product categories, and promote the long-term development of the company. The company’s R & D investment in the first quarter increased by 59.5% year-on-year, and the number of new R & D projects was 65. The embedded computer industry has a high prosperity, strong downstream demand, and the company’s order volume continues to grow. At the end of the first quarter, the on hand orders (including oral orders) were 505 million yuan, and the on hand orders were sufficient.
Profit forecast and investment suggestions. It is estimated that the EPS from 2022 to 2024 will be 3.08 yuan, 4.50 yuan and 6.62 yuan respectively, and the net profit attributable to the parent company will reach a compound growth rate of 44.1% in the next three years. Considering that the embedded computer industry has ushered in a stage of rapid development, the company, as a leading enterprise in the field of military embedded computer, continues to increase its investment in R & D and market. It is expected that the company’s order volume will increase significantly in 2022. The company is valued at 45 times in 2022, corresponding to the target price of 138.6 yuan, maintaining the “buy” rating.
Risk tips: military expenditure is less than expected, product research and development is less than expected, customer development is less than expected and other risks.
