\u3000\u3000 Beijing Huafeng Test & Control Technology Co.Ltd(688200) (688200)
Events
On January 16, the company released the forecast of 2021 annual report. In 2021, the company is expected to realize a net profit attributable to the parent company of RMB 422-465 million, with a year-on-year increase of 112-134%, deducting a net profit not attributable to the parent company of RMB 417-460 million, with a year-on-year increase of 182-211%, which is in line with market expectations.
In 2021q4, the median net profit attributable to the parent company is expected to be 133 million yuan in a single quarter, with a year-on-year increase of 114%; The median net profit deducted from non parent company was 120 million yuan, with a year-on-year increase of 259%.
Business analysis
With the growth of production capacity and shipment, the scale effect appears, and the cost rate has decreased significantly since the third quarter. With the continuous downstream demand and the expansion of the company’s new products, the company’s Q3 revenue increased by 49% month on month compared with Q2. The company’s sales / management / R & D expenses in the first three quarters were 8.1% / 6.1% / 10.1% respectively, and the sales / management / R & D expenses in the single three quarters were 4.9% / 4.4% / 7.3%, down 4pct / 2.5pct / 3.1pct month on month, mainly due to the scale effect of the rapid growth of revenue.
At present, the prosperity of the industry continues; Tianjin base has been put into operation with sufficient capacity. The company has sufficient orders on hand. At the end of the third quarter of 2021, the contract liabilities were 140 million and the inventory was 160 million, which continued to grow compared with the end of the second quarter. According to the announcement, the company’s monthly production capacity reached 130 units in the first quarter of 2021, and the production capacity has been increased to 200 units in the second quarter and the third quarter. The construction of Tianjin base has been completed and accepted, including production, R & D and supporting buildings. At present, three lean production lines are arranged, including two 8200 production lines and a new 8300 lean production line, which will further improve production efficiency and release production capacity.
The development progress of the company’s new generation st8300 tester exceeded expectations. In the long run, SOC chip test system opens the company’s growth ceiling, and the platform design of sts8300 further improves the integration. The company’s sts8300 machines have obtained a certain installed capacity. The orders of new products in the first three quarters of 2021 have increased significantly year-on-year, and have been installed and applied in many design enterprises, IDM and packaging and testing enterprises outside China. The company’s sts8300 is also continuously upgraded, the dominant frequency of the test board is continuously improved, and the R & D progress is better than expected.
Profit adjustment and investment suggestions
The company benefited from the maintenance of industry prosperity, the expansion of product categories and the improvement of shipments. It is expected that the company’s revenue in 2021-23 will be RMB 990 / 13.3 / 1.63 billion, with a year-on-year increase of 148% / 35% / 22%, and the net profit attributable to the parent company is predicted to be RMB 460 / 63 / 770 million, with a year-on-year increase of 131% / 37% / 23%, corresponding to PE of 56 / 41 / 34, maintaining the “buy” rating.
Risk tips
New product R & D progress does not meet expectations; The prosperity of the industry has declined; Overseas market expansion was less than expected.
