Jingsai Technology (871981)
Event: the company issued a performance forecast for 2021. It is expected to realize a net profit attributable to the parent company of 60 million yuan to 68 million yuan in 2021, with a year-on-year increase of 92.48% – 118.15%; In the second half of the year, the company realized a net profit attributable to the parent company of RMB 32.35-40.35 million, an increase of 17% – 46% month on month in the second half of the year compared with the first half of the year.
China’s leading quartz crystal oscillator enterprise, with booming production and sales, has driven rapid growth in performance: the company’s main products are quartz crystal oscillator and packaging materials. In terms of quartz crystal oscillator, the revenue will reach 242 million yuan in 2020, accounting for more than 70%, and the production capacity will reach 1.010 billion; In terms of packaging materials, the revenue will reach 64.0657 million yuan in 2020, accounting for about 20%, and the production capacity will reach 9.5 billion, ranking the leading level in the industry. In addition, the company has established long-term and stable cooperative relations with high-quality customers such as Guangzhou Shiyuan Electronic Technology Company Limited(002841) , Pulian Technology Co., Ltd., Chaozhou Three-Circle(Group) Co.Ltd(300408) , graffiti intelligence, Shenzhen Mtc Co.Ltd(002429) , Quectel Wireless Solutions Co.Ltd(603236) , Sichuan Tianyi Comheart Telecom Co.Ltd(300504) . The net profit attributable to the parent company is expected to reach 60 million yuan to 68 million yuan in 2021, with a year-on-year increase of 92.48% – 118.15%; In the second half of the year, the company realized a net profit attributable to the parent company of RMB 32.35-40.35 million, an increase of 17% – 46% month on month in the second half of the year compared with the first half of the year. The rapid growth of the company’s net profit was mainly due to the prosperity of the downstream market of quartz crystal oscillator during the reporting period, the orderly development of the company’s market, the steady release of new production capacity and the simultaneous increase of production and sales, which made the company’s current performance increase significantly year-on-year.
It has developed and mastered the technology related to thermal crystal oscillator, and raised and invested in the project of 1 billion ultra-small and high-precision SMD quartz crystal resonators per year: at present, it has obtained 9 national invention patents and 28 utility model patents, and 12 R & D projects are being engaged in. Most of the R & D plans to be industrialized and the technical level is advanced in the industry. At the same time, the company has reached cooperation with four universities or institutions for technology research and development, which is used to research and develop quartz crystal resonator related processes. After 2019, the company has invested more than 10 million yuan in research and development every year. At present, the company has developed and mastered the technology related to thermal crystal oscillator, which is in the stage of sending samples to customers and has not yet entered the stage of mass production; Related technologies such as temperature compensated crystal oscillator are still under development. For high-end products representing the development trend of the industry, such as miniaturization, high-frequency and high-precision quartz crystal oscillator, thermal crystal oscillator (TSX), temperature compensated crystal oscillator (TCXO), the company has reserved R & D projects such as “R & D and industrialization of temperature compensated crystal oscillator” and “development of TSX thermal crystal oscillator”. In addition, the company raised and invested 1 billion small and high-precision SMD quartz crystal oscillator products, which will significantly increase the company’s performance after reaching the later stage.
Investment suggestion: as a leader in subdivided fields, the company has significant first mover advantages in product types, technical reserves and customer base. We believe that with the strong demand for 5g applications and IOT, the company will grow well in the future. In addition, the company has successfully passed iatf16949 automobile quality system audit and certification, which may expand a broader downstream application field in the future. At present, the company is in the stage of rapid release of production capacity. With the continuous production of new production capacity, the company’s performance has great flexibility. The latest market value is 2.3 billion yuan. The estimated performance in 2021 is 60-68 million yuan, corresponding to pe34-38x. It is recommended to pay attention.
Risk warning: market competition intensifies the risk of core technology leakage
