\u3000\u30 Shenzhen Quanxinhao Co.Ltd(000007) 33 China Zhenhua (Group) Science & Technology Co.Ltd(000733) )
Event: the company released its 2021 annual report. The company achieved an annual operating revenue of 5.656 billion yuan, a year-on-year increase of 43.20%; The net profit attributable to the parent company was 1.491 billion yuan, a year-on-year increase of 146.21%; The business scale and benefits have achieved sustained and rapid growth. The company also released the first quarterly report of 2022. 22q1 achieved an operating revenue of 1.886 billion yuan, a year-on-year increase of 44.16%; The net profit attributable to the parent company was 607 million yuan, a year-on-year increase of 146.21%.
The profit level increased significantly year-on-year, and the growth rate of semiconductor discrete devices and integrated circuit business was higher: the company's comprehensive gross profit margin was 60.82% in 2021, an increase of 7.25 PCT year-on-year; The comprehensive expense ratio was 28.73%, with a year-on-year decrease of 1.08pct; The net interest rate (attributable to parent company) was 26.36%, with a year-on-year increase of 11.03pct. According to the disclosed data of all subsidiaries, the net profit has achieved good growth. Among them, the net profit of Zhenhua Yongguang, a subsidiary whose main business is semiconductor discrete device business, increased by 138.22% year-on-year, and the net profit of Zhen Jilin Sino-Microelectronics Co.Ltd(600360) which is a subsidiary whose main business is integrated circuit, increased by 99.93% year-on-year, higher than that of other business subsidiaries; Due to the large proportion of profits, the rapid growth of the profits of the above two companies is an important factor for the rapid growth of the overall profits of the company.
The balance sheet items reflect the company's active production reserve and sufficient orders: by the end of the 21st year, the prepayment had increased by 64.04% year-on-year; Inventories increased by 68.32% year-on-year, of which raw materials and issued goods increased more; The increase of prepayments, inventories and other items reflects the company's active preparation to maintain subsequent production. The company's accounts receivable increased by 12.82% year-on-year; Contract liabilities increased by 525.75% year-on-year. The increase of accounts receivable and contract liabilities reflects the continuous growth of the order amount obtained by the company. The cash flow of operating activities is negative and positive, and the improvement is obvious, mainly due to the year-on-year increase in cash received from the sale of goods and the provision of labor services. 22q1 accounts receivable, prepayments, inventories and other items maintained year-on-year growth, further reflecting the continuous growth demand of the downstream.
Plan non-public offering, seize market opportunities and further enhance competitiveness: on April 27, 22, the company announced the plan for non-public offering of shares in 2022, which plans to raise no more than 2.518 billion yuan to invest in the capacity improvement of semiconductor power devices, the flexible intelligent manufacturing capacity improvement of hybrid integrated circuits, the construction of new resistance capacitance component production lines, the construction of digital intelligent production lines of relays and control components R & D and industrialization capacity-building of switches and display and control components. Through the construction of a new round of raised investment projects, it is conducive to grasp market opportunities and further enhance competitiveness.
Profit forecast, valuation and rating: the net profit of the company in 21 years and 22q1 increased significantly, the gross profit margin increased significantly, orders continued to increase, and the company actively prepared goods for production. We raised the company's profit forecast for 202223 by 28.36% / 26.31% to 2.203 billion yuan / 2.719 billion yuan, and predicted a profit of 3.259 billion yuan in 2024, EPS of 4.25/5.25/6.29 yuan in 202224 respectively, and the current share price corresponding to PE is 23 / 18 / 15x respectively. It is widely used in China's aerospace industry and other key electronic products. Driven by the rigid demand in key application fields and the transformation and upgrading of China's high-tech industry, the scale and efficiency of new electronic components business are expected to achieve sustained and rapid growth. Maintain the company's "buy" rating.
Risk warning: the risk that the R & D Progress of new and highly reliable products is less than expected; The competition risk brought by the intensified competition in the market of defense electronic components; Risk of national defense policy adjustment.
