\u3000\u3 Guocheng Mining Co.Ltd(000688) 135 Guangdong Leadyo Ic Testing Co.Ltd(688135) )
Event: the company issued the 2021 annual report. The company achieved an operating revenue of 391 million yuan in 2021, a year-on-year increase of + 54.73%; The net profit attributable to the parent company was 106 million yuan, a year-on-year increase of + 103.75%; The non net profit deducted was 92 million yuan, a year-on-year increase of + 100.43%. The company released the first quarter report of 2022. The company achieved operating revenue of 110 million yuan in 2022q1, a year-on-year increase of + 57.47%; The net profit attributable to the parent company was 10 million yuan, a year-on-year increase of – 28.80%; The non net profit deducted was 09 million yuan, a year-on-year increase of – 29.40%.
Comments: the performance has increased significantly in 21 years, and the Q1 revenue in 22 years has increased significantly year-on-year. After excluding share based payment expenses, the net profit has increased steadily.
Optimistic about the company’s constant growth and continuous expansion of test capacity + equity incentive to give confidence in long-term development. The company’s outstanding performance growth in 2021 is mainly due to: (1) with the continuous improvement of the prosperity of China’s IC industry in 2021, the company actively grasped
Market opportunities, continue to expand the layout of medium and high-end test capacity, strengthen market development, introduce high-quality customers, and the customer structure has changed. With the gradual implementation of raised investment projects, the testing capacity is gradually released and benefits are generated. The company’s chip testing in 5g, industrial control, biometrics, MCU, aiot and other fields will maintain rapid growth in 2021; (2) The 2021h2 test orders are full, the production capacity runs at full capacity, and the scale effect reduces the allocation of fixed costs, which comprehensively promotes the substantial growth of the company’s operating revenue and net profit in 2021; In 2022q1, the decline in net profit attributable to the parent company was mainly due to the payment of equity incentive fees. The company maintained growth in the testing of computing power, 5g communication, industrial control, biometrics, MCU and other fields, driving a significant year-on-year increase in revenue. The decline in net profit attributable to the parent company was mainly due to the increase in relevant expenses caused by the company’s equity incentive; If the impact of share based payment is excluded, it is attributable to
The net profit attributable to shareholders of listed companies was 167984 million yuan, an increase of 14.69% over the same period last year. Maintain a strong momentum of development. 5g + industrial communication + biometric + MCU + aiot drives the high growth of chip testing. The company seizes the opportunity of multi-point flowering downstream by virtue of its technology and service advantages. The company covers the downstream sector. In the future, the track is extremely broad and the demand is repeated. It has gained advantages in emerging application fields such as 5g communication, sensors, Internet of things, fingerprint identification, financial IC card, Beidou navigation and automotive electronics. In the future, it will strengthen its efforts to continue to test in AI, VR, blockchain, big data, cloud computing and other fields. The golden age of aiot has come, and the semiconductor “100 billion” competition has been opened. The company is looking forward to the layout of face recognition and smart home in the field of aiot; The value and quantity of automotive semiconductors driven by new energy vehicles are expected to be upgraded simultaneously, and the Internet of vehicles, tire pressure monitoring, automatic driving, etc. are prospectively arranged; With the advent of 5g era, leading the market demand for RF filters, the company has set up RF, PA, FPGA, LNA, switch, etc. With the gradual advancement of the raised investment project, the test capacity is gradually released and benefits are generated.
The demand of production expansion + localization makes the test orders full, and the company’s production capacity is running at full capacity. Wafer factories in Chinese Mainland increased investment to expand production capacity + chip design companies ushered in rapid growth, and the development of test demand followed closely. The localization trend of wafer manufacturing is obvious, which will be conducive to the development of wafer testing industry. Since the second half of 2020, the market has been in an unprecedented boom, and the production capacity is in short supply. The production expansion trend of SMIC Huahong is clear. It is expected to continue to expand production in the next four years, and the rapid expansion of production capacity will drive the test demand. In the second half of 2021, the test orders of the company are full, and the production capacity is in full load operation.
In view of the high development application in the downstream, we will continue to cultivate the R & D layout, superimpose the indispensable high gross profit advantage of independent test track, and are optimistic about the long-term development of the company. Seizing the high-tech opportunities of downstream applications, the company has developed testing technologies such as touch chip, fingerprint chip and wireless industrial control chip, as well as equipment development and technical capabilities such as strip packaging product automatic probe platform and 3D high-frequency intelligent classification manipulator. The gross profit margin of the overlay chip testing industry is higher than that of the electronic industry as a whole, which is an indispensable track with high customer stickiness. The gross profit margin of the test track occupied by the company is higher than the industry average. At the same time, the company combines the in-depth research and development of equipment + software and hardware, binds customers as strategic partners, improves customer stickiness and is optimistic about the long-term development of the company.
Equity incentives highlight long-term development confidence, raise funds to expand chip test capacity, pay attention to R & D and ensure core competitiveness. In order to meet the needs of future sustainable development strategy, further mobilize the enthusiasm of employees and attract and retain excellent talents, the company implemented the first phase of equity incentive plan for listing in 2021. The amount of share based payment expenses incurred in 2021 was 185415 million yuan, which was included in recurring profits and losses. At the same time, the total amount of funds raised by the company does not exceed 1.355 billion yuan, which is used to build relevant factories and office buildings for chip testing business, purchase relevant equipment required for chip testing, expand chip testing capacity, meet the rapid growth demand of integrated circuit testing industry, and improve the quality and comprehensive competitiveness of the company’s products and services. In order to maintain and enhance the company’s core competitiveness and maintain the R & D investment intensity, RMB 487529 million was invested in 2021, an increase of 96.73% over the previous year.
Profit forecast: the company benefits from the high growth of downstream applications such as 5g + MCU + aiot, and the superposition of capacity release produces benefits, and the performance is expected to continue to grow. It is estimated that the net profit of the company in 2022 / 2023 / 2024 will be 160 / 209 / 254 million yuan, maintaining the “buy” rating of the company.
Risk tips: concentrated sales areas, rising labor costs, aggravation of the epidemic, loss of R & D technicians
