\u3000\u3000 Sinomag Technology Co.Ltd(300835) (300835)
Events
The company released the performance forecast for 2021 on the evening of January 20. It is expected to realize the net profit attributable to the parent company of 130-140 million yuan in 2021, with a year-on-year increase of 90.57% – 105.23%; The net profit deducted from non parent company was RMB 121 million to RMB 133 million, with a year-on-year increase of 130.70% – 154.63%.
Commentary
Q4 performance meets expectations. In 2021, the company’s net profit attributable to the parent company from q1-q3 was 104 million yuan, and the net profit attributable to the parent company from Q4 was 26-36 million yuan, with a month on month decrease of 14% – 38%, mainly due to the shutdown of the Vietnamese subsidiary in July 21 due to the epidemic, which has resumed production in December 21. At present, the operation is normal. The company’s non recurring profit and loss in 2021 is expected to be 7 million yuan – 9.5 million yuan, mainly government subsidies. The company has strong market demand for permanent ferrite products, with 8000 tons of raised and invested capacity gradually released, and the capacity utilization rate has reached a high level. It is expected that the revenue will increase by 38% in 2021 and the profitability will be improved.
Permanent magnet production capacity is gradually released, expanding production and seizing market share. The company’s main products are high-performance wet pressed magnetic tiles, which belong to ferrite permanent magnet and are the core components of downstream micro and special motors. The 8000 ton high-performance permanent ferrite wet pressed magnetic tile production line project raised and invested in May 20 has released part of the production capacity and will fully reach the production capacity in February 22. At present, the company’s production capacity is 33000 tons / year. The company plans to add 10000 tons of production capacity every year from 22 and realize 60000 tons of production capacity by the end of 24, mainly relying on the transformation of the old line and the production of the new line. The gross profit margin of the company’s wet pressed magnetic tile ranks in the forefront of the industry and has been maintained at about 35% – 40% in recent years.
Soft magnetic integrated industrial chain layout to create the second growth curve. The soft magnetic project of the company was officially started in 20 years, and the whole industrial chain of powder preparation, magnetic core products (metal magnetic powder core, ferrite powder core) and device products (inductance) was promoted simultaneously. At present, the annual production capacity of iron silicon aluminum and iron silicon metal powder core is 2000 tons, which has been put into operation; The first phase of high-frequency magnetic devices (inductors) has an annual production capacity of 12 million and has been put into operation. In the second phase of construction, the total planned annual production capacity of inductors is 50 million and the planned high-performance soft ferrite is 6000 tons. In December 21, the company wholly acquired boweixin magnetic, which further extended to the fields of chip inductors and power electronic components.
Profit forecast & investment suggestions
It is estimated that the net profit attributable to the parent company in 21-23 years will be 136 million yuan, 199 million yuan and 289 million yuan respectively, EPS will be 192 yuan, 282 yuan and 409 yuan respectively, and PE will be 40 times, 27 times and 19 times respectively. Maintain the “buy” rating.
Risk tips
Downstream demand fluctuation risk; New product development risk; Risk of loss of technical personnel, etc.
