\u3000\u3 China Vanke Co.Ltd(000002) 371 Naura Technology Group Co.Ltd(002371) )
Matters:
The company disclosed its annual report for 21 years. In 2021, the company realized a revenue of 9.683 billion yuan (year-on-year + 59.90%) and a net profit attributable to the parent company of 1.077 billion yuan (+ 100.66%), and the company plans to distribute a cash dividend of 2.05 yuan (including tax) for every 10 shares. In the first quarter of 2022, the company realized a revenue of 2.136 billion yuan (+ 50.04%) and a net profit attributable to the parent company of 206 million yuan (+ 183.18%).
Ping An View:
Equipment and devices grew in an all-round way, and the gross profit margin increased slightly. In 2021, the company’s electronic process equipment and electronic components achieved revenue of 7.949 billion yuan (year-on-year + 63.24%) and 1.715 billion yuan (year-on-year + 47.22%); The gross profit margin was 33.00% (year-on-year + 3.56 PCT) and 68.90% (+ 2.75 PCT) respectively. In 2021, the company’s comprehensive gross profit margin reached 39.41%, with a year-on-year increase of 2.72pct. In 2021, the net profit margin attributable to the parent company was 11.13%, with a year-on-year increase of 2.26pct, which was basically consistent with the increase of gross profit margin.
The growth rate of semiconductor equipment is the highest, and the demand for electrical components is hot. The company’s business is mainly contributed by three subsidiaries. In 2021, northern Microelectronics (mainly engaged in semiconductor equipment), northern vacuum (mainly engaged in vacuum equipment) and seven star Huachuang achieved revenue of 7.121 billion yuan (year-on-year + 71.39%), 828 million yuan (+ 15.86%) and 1.715 billion yuan (+ 47.22%) respectively. The high-speed growth of northern semiconductor equipment shows that the performance of northern semiconductor equipment has entered the highest growth period in 2021. Seven Star Huachuang’s revenue growth rate is also high, indicating that the downstream industries of electronic components, such as aerospace, are in hot demand.
With full orders in hand, we will raise 8.5 billion yuan to expand production capacity. By the end of the 21st century, the company’s inventory had reached 8 billion yuan (year-on-year + 63%) and contract liabilities had reached 5 billion yuan (+ 66%), indicating that the company had full orders on hand. In August 2021, the company’s non-public project was approved by the CSRC, and the fund-raising was completed in October. The fund-raising of 8.5 billion will be used for the construction of “production expansion project of semiconductor equipment industrialization base (phase IV)”, “high-end semiconductor equipment R & D project” and “production expansion project of high-precision electronic components industrialization base (phase III)”, so as to lay a solid foundation for the subsequent development of the company.
Investment suggestion: in view of the higher than expected growth of the company’s semiconductor equipment and the improvement of profit margin, we raised the company’s profit forecast. It is expected that the company’s net profit attributable to the parent company from 2022 to 2024 will be 1.631 billion yuan, 2.221 billion yuan and 2.968 billion yuan respectively (the value from 22 to 23 years ago was 1.217 billion yuan and 1.647 billion yuan respectively), and the P / E ratio corresponding to the current stock price will be 78 times, 57 times and 43 times respectively. As the leader of China’s semiconductor equipment, the company has great potential for domestic substitution and maintains the “recommended” rating.
Risk tips: 1) the investment of Chinese wafer factory is less than expected. If the number or progress of investment landing of the wafer factory is less than expected, the growth or rhythm of the equipment market will slow down, and the growth of the company’s semiconductor equipment may not meet expectations. 2) The growth of electronic devices was less than expected. If there are major changes in the downstream industries of electronic components, such as aerospace, precision instruments, automation and other markets, and the demand growth is less than expected, it will drag down the overall performance of the company. 3) The growth of photovoltaic industry slowed down. The subsidy policy of photovoltaic industry has an obvious ebb trend, the industry will usher in a new pattern of market competition, and the growth of vacuum equipment of the company may be affected; 4) The research and development of new products is not as expected. If the R & D Progress of the company’s advanced process equipment is less than expected, it will have a significant impact on the performance growth in the next few years.
