\u3000\u3 China Vanke Co.Ltd(000002) 436 Shenzhen Fastprint Circuit Tech Co.Ltd(002436) )
Event overview
On April 29, the company released the first quarterly report of 2022. In Q1 of 2022, the operating revenue was 1.27 billion yuan, a year-on-year increase of 18.8%, the net profit attributable to the parent was 200 million yuan, a year-on-year increase of 98.3%, deducting the net profit not attributable to the parent was 120 million yuan, a year-on-year increase of 10.6%, the gross profit margin in 2022q1 was 29.7%, a year-on-year decrease of 2.3pct, the net profit margin was 15.4%, and a year-on-year increase of 5.5pct.
The continuous release of production capacity led to the growth of revenue, and the net profit attributable to the parent company increased significantly in 2022q1
1) the company achieved a revenue of 1.27 billion yuan in 2022q1, with a year-on-year increase of 18.8%, mainly due to the release of production capacity of Yixing Silicon Valley, the steady increase of production capacity of Guangzhou XINGSEN express, the full orders of packaging substrate business and the steady growth of finline; 2) The net profit attributable to the parent company was 200 million yuan, a year-on-year increase of 98.3%, deducting the net profit not attributable to the parent company of 120 million yuan, a year-on-year increase of 10.6%, which was mainly due to the high increase in the net profit attributable to the parent company due to the transfer of some equity of Ruijun semiconductor by 2022q1 company; The company's net profit exceeded 20 million yuan due to equity incentive expenses of 15.75 million yuan in the first quarter, losses caused by the fact that the subsidiary Xingke semiconductor packaging substrate has not been officially put into production, and increased employee costs for the preparation of FCBGA packaging substrate business. Affected by factors such as the rise in the price of raw materials, the company's gross profit margin in 2022q1 decreased by 2.3pct to 29.7%, resulting in a slowdown in the growth rate of net profit attributable to the parent after deduction in the first quarter. 3) The company's cash to income ratio in 2022q1 was 102.5%, with a year-on-year increase of 9.1pct, and the company's current payment collection ability was enhanced.
The packaging substrate business can be expected for a long time, leading the future growth of the company
1) the company actively expands the packaging substrate business, realizes the stable mass production of coreless, ETS, fc-csp, RF, fingerprint identification and other products in terms of new product development, and is at the leading level in China in terms of fine route and sheet processing capacity. In terms of customer development, the company takes storage chips as the main direction and has established cooperative relations with mainstream customers at home and abroad. 2) In terms of production capacity, in the short term, the large fund project will be put into operation soon, and the production capacity of packaging carrier business will be further improved. At present, the company's BT carrier capacity is 20000 square meters / month. The large fund project plans to increase 30000 square meters / month carrier capacity and 15000 square meters / month class carrier capacity. The first 15000 square meters / month BT carrier production line is expected to be put into operation in the first half of 2022 to further expand the company's packaging substrate capacity. In the medium and long term, FCBGA packaging substrates are basically monopolized by overseas manufacturers. With the surge in demand in intelligent driving, 5g, big data, AI and other fields, FCBGA packaging substrates have been in a state of capacity shortage for a long time. In addition to Shenzhen Fastprint Circuit Tech Co.Ltd(002436) in Chinese Mainland, only Shennan Circuits Co.Ltd(002916) has the production capacity of FCBGA in the field of FCBGA packaging substrates. The company actively arranges FCBGA business, and will reach the production capacity in 2025, The second phase is planned to reach the production capacity in December 2027. It is expected that after the two phases are completed, the revenue will increase by 5.6 billion yuan and the net profit will increase by 1.3 billion yuan. At present, XINGSEN semiconductor, a subsidiary of the company's FCBGA project, has obtained the business license in March 2022, and the project is progressing smoothly.
Investment advice
We expect the net profit attributable to the parent company in 2022, 2023 and 2024 to be 7 / 9 / 1.133 billion yuan respectively. According to the closing price of 2022 / 4 / 29, PE is 17 / 13 / 11.5 times, maintaining the "buy" rating.
Risk tips
The new production capacity is less than expected, the downstream demand is less than expected, the risk of not raising enough project construction funds in time, and the risk of fluctuations in the peripheral environment.
