\u3000\u30 Fawer Automotive Parts Limited Company(000030) 26 Zhejiang Mtcn Technology Co.Ltd(003026) )
Event: the company recently released the annual report for 2021 and the performance report for the first quarter of 2022. In 2021, the company achieved a revenue of 437 million yuan, a year-on-year increase of 60.13%; The net profit attributable to the parent company was 131 million yuan, a year-on-year increase of 51.44%. In the first quarter of 2022, the company achieved a revenue of 96 million yuan, a year-on-year increase of 12.92%, and a net profit attributable to the parent company of 20 million yuan, a year-on-year decrease of 41.87%.
Affected by the rise in the price of upstream raw materials, the company's profitability decreased and its performance was under pressure in the short term. In 22q1, the company achieved a revenue of 96 million yuan in a single quarter, with a year-on-year increase of 12.92% and a month on month decrease of 22.58%; The net profit attributable to the parent company was RMB 20 million, a year-on-year decrease of 41.87% and a month on month increase of 11.11%. Since 21q4, the company's profitability has decreased significantly, which is mainly affected by the rise in the price of upstream polysilicon raw materials. Among them, the operation of 22q1 has improved month on month. In the first quarter, the gross profit margin increased by 10.04pct month on month to 43.68%, and the net profit margin increased by 7.41pct month on month to 25.28%, driving the profit growth in the first quarter month on month. We judge that the overall profitability of the company is expected to gradually improve with the easing of the upward pressure on the upstream cost polysilicon price; In addition, the company's main production bases are located in Ningxia, Zhejiang, Xi'an, Nantong and other cities, of which the silicon wafer production bases in Zhejiang and Xi'an have been impacted by the epidemic, resulting in short-term pressure on business.
The company further consolidated its small-size market position, expanded its power device business and improved its competitiveness. Since its establishment, the company has been committed to the R & D, production and sales of semiconductor silicon materials and their products. During the reporting period, the company completed the expansion of grinding silicon wafer and monocrystalline silicon rod, which greatly increased the company's capacity in the field of 4-6 inch small-size silicon materials and further improved the company's profitability. In addition, the company actively explores domestic and foreign markets to expand the efficient utilization of production capacity. At present, the company's products have been exported to Taiwan, China, Japan, South Korea, Southeast Asia, the United States and other regions, further consolidating and improving the company's market position and competitiveness; In addition, the company extended the investment layout vertically and set up a joint venture company Jiangsu Gaoxin to layout the business of power devices. Gaoxin is a national high-tech enterprise specializing in the production of semiconductor power chips and devices. It has a complete set of manufacturing technology and production line of plastic encapsulated high-frequency and high-voltage diodes at the international advanced level. At present, it plans to complete the expansion of production capacity by building a new plant, and actively promote the production project of silicon diffuser for device core, special high-voltage and vehicle high-power diodes, so as to further enrich the company's product types and create new profit growth points, Enhance the company's sustainable development ability and core competitiveness. After investing in Gaoxin, the company will expand its business layout vertically, further enhance the competitiveness of the industrial chain and build a business platform for the whole industrial chain.
The fund-raising investment project is progressing smoothly, and there is broad growth space to expand the large silicon wafer business. During the reporting period, the company's fund-raising projects progressed smoothly. Up to now, the plant construction and equipment installation and commissioning have been completed, and the follow-up is expected to be connected smoothly. In the field of 8-inch silicon polishing wafer, the company has accumulated technology for many years. After the 8-inch polishing wafer project is successfully put into operation, it will enrich the company's product layout in the field of semiconductor silicon wafer, consolidate the market position of small-size silicon wafer, steadily expand the market of large-size silicon wafer, and have a broad growth space in the future.
Investment suggestion: considering the epidemic situation and the impact of Gaoxin consolidated statement, we adjusted the profit forecast. It is expected that the company will realize the net profit attributable to the parent company of 177 million yuan, 247 million yuan and 306 million yuan from 2022 to 2024, corresponding to 23 times, 17 times and 13 times of PE (the original forecast of 181 / 265 million yuan from 22 to 23 years). Considering that the company is an excellent manufacturer in the field of silicon materials in China and has excellent profitability, the company is rated as "buy".
Risk tips: 1. The market demand of downstream industries is lower than expected; 2. The capacity expansion of the company's production line is less than expected; 3. Price fluctuation of upstream raw materials; 4. The use information of the research report is not updated in time.
