\u3000\u3000 Beijing Yuanliu Hongyuan Electronic Technology Co.Ltd(603267) (603267)
Event: on January 12, 2022, AVIC held the 2022 work conference in Beijing.
Key investment points
Aviation industry group sets performance targets for the new year, and the company will fully benefit. On January 12, AVIC held a 2022 work meeting in Beijing, which set the assessment objectives for 2022 as: net profit of 16.83 billion yuan, total profit of 21.99 billion yuan and eva10.3 billion yuan RMB 500 million, with a year-on-year increase of 8%, 6% and 23.7% respectively, indicating that the group is full of confidence in the stable and rapid growth of the aviation industry. As an important supplier of military electronic components in China, the company will make full profits.
China is a major supplier of military ceramic capacitors, and the product category + production capacity continues to improve. The company is a major supplier of China's military ceramic capacitors. In line with the general trend of national information, digital and intelligent development, relying on the headquarters, the company focuses on the layout of three industrial bases in Beijing, Suzhou and Chengdu, strengthens the development of new products of special ceramic capacitors in Beijing production base, and accelerates the comprehensive serialization of ceramic capacitors, the core products of Suzhou production base, from materials to products The progress of localization and industrialization will accelerate the layout and construction of new product lines in Chengdu industrial base. In the first half of 2021, the company independently developed high-power RF microwave multilayer ceramic capacitors, AC filters, filter components and other products, further enriching the company's product categories. Among them, high-power RF microwave multilayer ceramic capacitors and multi model customized filters have been supplied in small quantities.
Strong demand from downstream customers and substantial growth in agency business. The company's main products are a variety of series of electronic components, including ceramic capacitors, electrolytic capacitors, film capacitors, super capacitors, patch resistors, varistors, thermistors, sensors, inductive transformers, filters, circuit breakers, relays, etc., mainly for industrial and consumer civil markets. At the same time, the company expanded its agency brands and product categories and further strengthened cooperation with core customers. The main customers are BOE, Ginlong Technologies Co.Ltd(300763) , Beijing sanhexing, Beijing DAHAO and China Xd Electric Co.Ltd(601179) . There is strong downstream demand. In the first half of 2021, the agency business realized an operating revenue of 492 million yuan, an increase of 54.73% over the same period.
Implement the equity incentive plan and be confident of sustained and rapid growth in the future. The company implemented the stock option incentive plan in June 2021, and actually granted 928000 stock options to the incentive objects, accounting for about 0.40% of the total share capital of the company. The performance assessment requirements at the company level under the exercise conditions are: Based on the revenue in 2020, the revenue growth rate from 2021 to 2023 shall not be less than 30% / 69% / 120% respectively, or based on the net profit in 2020, The net profit growth rate from 2021 to 2023 shall not be less than 35% / 76% / 128% respectively, which shows the company's confidence in the sustained and rapid growth of future performance.
Profit forecast and investment rating: Based on the development prospect of the company's self-produced and agency business, we predict that the net profit attributable to the parent company from 2021 to 2023 will be RMB 874 / 1241 / 1622 million respectively, corresponding to EPS of RMB 3.76, RMB 5.34 and RMB 6.98 respectively, and corresponding PE of 44 / 31 / 24 times respectively. It will be covered for the first time and given a "buy" rating.
Risk tips: 1) downstream demand and order fluctuation; 2) The company's profit is less than expected; 3) Market systemic risk.
