\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 563 Xiamen Faratronic Co.Ltd(600563) )
Key elements of the report:
On April 23, 2022, Xiamen Faratronic Co.Ltd(600563) released the Q1 performance report for 22 years. The operating revenue was 840 million yuan (YoY + 44.70%), the net profit attributable to the parent company was 204 million yuan (YoY + 23.55%), and the net profit deducted from non attributable to the parent company was 193 million yuan (YoY + 22.34%).
Key investment points:
Downstream new energy vehicles, photovoltaic and other demand is strong, and the company’s revenue and net profit have achieved double growth: the company is mainly engaged in thin-film capacitor related business. In Q1 of 22 years, the company benefited from the increased demand for new energy and industrial control, and the company’s revenue has increased significantly by 44.70%. The sales expense ratio of Q1 in 22 years was 1.78%, with a year-on-year decrease of 0.34pcts; The rate of administrative expenses was 4.52%, a year-on-year decrease of 1.13 PCTs; The R & D expense ratio was 3.66%, down 0.26pcts year-on-year. The company’s three expenses accounted for 9.96%, a year-on-year decrease of 1.73 PCTs, mainly due to the relative decline in the proportion of expenses after the increase of scale. Although the gross profit margin decreased by 6.17pcts year-on-year due to the rise in the cost of raw materials such as film and copper, the net profit attributable to the parent company still increased by 23.55% driven by the substantial increase in revenue and the decline in the proportion of three fees.
The consumption of thin-film capacitors of new energy vehicles is expected to increase, and the increase in the installed capacity of photovoltaic wind power drives business growth: in the business of new energy vehicles, the company’s capacitors are mainly used in OBC and three electric systems. The number of products is 2-4, and the value of single vehicle is Changshu Guorui Technology Co.Ltd(300600) yuan. The company’s new energy vehicle business has successfully entered the supply chain of Byd Company Limited(002594) , Geely and other mainstream Chinese auto enterprises. Among overseas customers, the company stably supports Volkswagen, BMW, Mercedes Benz and other car enterprises. We expect that with the increasing trend of high-voltage electric drive and four-wheel drive of new energy vehicle platform, the consumption of single vehicle film capacitor will increase, which is expected to drive the rapid growth of the company’s new energy vehicle related business. Meanwhile, in terms of photovoltaic wind power business, the company’s products are mainly used in DC link capacitors of photovoltaic inverters and wind power converters to absorb high pulse current and smooth output voltage at DC link terminal. The company has entered the supply chain of relevant industries and is an important supplier of Huawei, Yangguan power supply and other enterprises. It is expected that with the continuous promotion of photovoltaic wind power construction, the company’s business is expected to grow in large quantities.
Profit forecast and investment suggestions: it is estimated that from 2022 to 2024, the operating revenue will be RMB 3.850/50.83/6.557 billion, and the net profit attributable to the parent company will be RMB 1.022/13.80/1.760 billion respectively, corresponding to the closing price on April 28, EPS will be RMB 4.54/6.13/7.82, and PE will be 30.81x/22.82x/17.90x, maintaining the rating of “overweight”.
Risk factors: macroeconomic fluctuation risk; Sino US trade friction risk; Market competition risk; Price fluctuation risk of raw material supply; exchange-rate risks.
