\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 79 Electric Connector Technology Co.Ltd(300679) )
Performance review
On April 27, 2022, the company announced the annual report and the first quarterly report. In 2021, the company’s revenue was 3.246 billion yuan, an increase of 25% and the net profit attributable to the parent was 370 million yuan, an increase of 38%. Q4 revenue was 810 million yuan, with an increase of 11%, the net profit attributable to the parent was 89 million yuan, with an increase of 12%, Q1 revenue was 76 million yuan, with a decrease of 7%, and the net profit attributable to the parent was 88 million yuan, with a decrease of 14%. Meet expectations.
Business analysis
The on-board connector is fast and large-scale, and the profitability continues to improve. In 2021, the company’s vehicle connector revenue was 310 million yuan, an increase of 237% at the same time, and the gross profit margin reached 38.9%, an increase of 8pct over the same period last year. With the increase in the proportion of vehicle connector revenue with high profitability, the company’s gross profit margin in 2021 increased by 1.6pct to 32% compared with that in 2020, and the gross profit margin in Q1 increased by 2pct to 32% month on month in 2022.
Consumer electronics grew steadily in 2021, and the poor prosperity of Q1 consumer electronics in 2022 dragged down performance. 1) The company’s revenue from RF connectors and cable connectors in 2021 was 1.068 billion yuan, an increase of 11% at the same time, and the gross profit margin increased 2pct to 38%; The revenue of EMC parts was 810 million yuan, increased by 5% at the same time, and the gross profit margin increased 1PCT to 33%; The soft board revenue was RMB 380 million, with a 13% increase, and the gross profit margin increased by 4pct to 17.5%. The revenue of other products (FPC, BTB and other connectors) was RMB 590 million, with a 52% increase, and the gross profit margin decreased by 7pct to 20%. 2) The year-on-year decline of Q1 company’s revenue and performance in 2022 is mainly due to the poor prosperity of consumer electronics, and the Android goods base of Q1 in 2021 is large.
Continuous improvement of operating capacity. The company’s accounts receivable turnover days in 2021 were 82 days, a decrease of 2.5 days over the same period last year, and the inventory turnover days were 83 days, a decrease of 3.5 days over the same period last year. The net cash flow from operating activities in 2021 was 520 million yuan, an increase of 18% at the same time. In 2022, the net cash flow from Q1 operating activities was 170 million yuan, an increase of 37% at the same time.
Investment suggestions:
It is estimated that the company’s parent company performance from 2022 to 2024 will be RMB 480 million, RMB 620 million and RMB 820 million, with a year-on-year increase of 29%, 29% and 33%. Maintain the buy rating, with a target price of 34 yuan (30 2022eps).
Risk tip: smartphone shipments fell, 5g progress was less than expected, and automotive business was lower than expected.
