\u3000\u30 Xuchang Ketop Testing Research Institute Co.Ltd(003008) 35 Sinomag Technology Co.Ltd(300835) )
Events
The company released the first quarterly report of 2022 on the evening of April 26. In the first quarter of 2022, the company achieved a revenue of 224 million yuan, a year-on-year increase of 23.50%; The net profit attributable to the parent company was 28 million yuan, a year-on-year decrease of 4.01%; The net profit deducted from non parent company was 21 million yuan, a year-on-year decrease of 21.70%; EPS was 0.39 yuan, a year-on-year decrease of 4.88%.
Commentary
Q1 R & D investment increased and the performance met expectations. Q1 company’s R & D expense is 15 million yuan, with a R & D expense rate of 6.64%, an increase of 1.57 PCTs compared with 21 years, which has a slight impact on the company’s performance. The R & D expense is mainly invested in the development and utilization of new soft magnetic products to speed up the process of new business expansion. At the same time, Anhui Longci New Material Technology Co., Ltd., with an investment of 30 million yuan, has been registered and established. Q1 company’s permanent ferrite business has a stable profit. At the end of February, the “project with an annual output of 8000 tons of high-performance permanent ferrite wet pressed magnetic tile” has reached production capacity, and the overall performance is in line with expectations.
The permanent magnet business has expanded steadily, with an annual production capacity of 60000 tons in 24 years. The company’s main products are high-performance wet pressed magnetic tiles, which belong to ferrite permanent magnet and are the core components of downstream micro and special motors. At present, the company’s production capacity is 33000 tons / year. The company plans to add 10000 tons of production capacity every year from 22 years, and realize 60000 tons of production capacity by the end of 24 years, mainly relying on the transformation of old lines and the production of new lines. It is estimated that the output of permanent ferrite of the company in 22-24 years will be 36000 tons, 45000 tons and 54000 tons respectively. The gross profit margin of the company’s wet pressed magnetic tile ranks in the forefront of the industry and has been maintained at about 35% – 40% in recent years.
Soft magnetic business integration layout, looking forward to the large amount of powder core inductance. The soft magnetic project of the company was officially started in 20 years, and the whole industrial chain of powder preparation, magnetic core products and device products was promoted simultaneously. At present, the annual production capacity of iron silicon aluminum and iron silicon metal powder core is 2000 tons, which has been put into operation; The first phase of high-frequency magnetic devices (inductors) has an annual production capacity of 12 million and has been put into operation. In the second phase of construction, the total planned annual production capacity of inductors is 50 million and the planned high-performance soft ferrite is 6000 tons.
Profit forecast & investment suggestions
It is expected that the soft magnetic business of the company will start to concentrate and expand in 23 years, and the net profit attributable to the parent company in 22-23 years will be reduced by 13% and 20%, and the net profit attributable to the parent company in 22-24 years is expected to be 1.5% respectively RMB 7.4 billion, RMB 232 million and RMB 307 million, corresponding to EPS of RMB 1.44, RMB 1.93 and RMB 2.55 respectively, and corresponding PE of 16, 33 and 25 times respectively. Maintain the “buy” rating.
Risk tips
Downstream demand fluctuation risk; Risk of new product development; Risk of loss of technical personnel, etc.
