\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 04 Hangzhou Chang Chuan Technology Co.Ltd(300604) )
In 2021, the company achieved an operating revenue of 1.511 billion yuan, a year-on-year increase of 88%; The net profit attributable to the parent company was 218 million yuan, a year-on-year increase of 157%; The non net profit deducted was 193 million yuan, a year-on-year increase of 340%; The basic earnings per share was 0.37 yuan, a year-on-year increase of 164%.
Key points supporting rating
In 2021, the operating performance increased more than expected. After the business adjustment in 2019, the business outside China will resume growth in 2020. In 2021, all businesses of the company will speed up comprehensively. The revenue of the testing machine of the headquarters will be 489 million yuan, with a year-on-year increase of 175%, the revenue of the machine selection of this part will be 366 million yuan, with a year-on-year increase of 117%, and the revenue of STI will be 570 million yuan, with a year-on-year increase of 46%. Both inside and outside the company enjoy the performance flexibility brought by the high prospect of the global sealing and testing equipment market since 2020q4.
The increase in the proportion of testing machines will continue to optimize profitability. Using pro forma financial data, the proportion of testing machine revenue in the company’s total revenue increased from 12% in 2016 to 32% in 2021, and the gross profit margin of testing machine remained around 70%, while the gross profit margin of sorting machine, AOI and other equipment was generally around 45%. The large-scale growth of testing machine will optimize the business structure and promote the continuous rise of comprehensive gross profit margin.
The platformization of test equipment products has been successful. In addition to the growth of probe and STI testing equipment in the industry, the number of probe and STI testing equipment accounted for 117% of the total revenue of testing equipment, including probe and STI testing equipment, which accounted for 35.
The company continues to strengthen R & D and enhance its core competitiveness. In 2021, the company invested 353 million yuan in R & D, accounting for 23.36% of the operating revenue, and the ratio of R & D to the operating revenue was stable. The company continues to focus on the research and development of probe platform, digital testing machine and other related equipment to enhance the company’s core competitiveness.
Profit forecast
In view of the company’s outstanding performance and the optimistic growth rate of China’s wafer manufacturing, packaging and testing industry, it is predicted that the company’s net profits in 22-24 years will be 4.63/5.75/670 million yuan respectively, maintaining the buy rating.
Main risks of rating
The uncertainty of international geopolitical friction; The delivery cycle of parts is lengthened; The progress of R & D increased, but it was less than expected, resulting in reduced profits.
