\u3000\u3000 Guangdong Champion Asia Electronics Co.Ltd(603386) (603386)
The performance forecast of 2021q4 increased year-on-year, the product line was developed, and the “buy” rating was maintained
The company announced the performance forecast for 2021. It is expected to realize the net profit attributable to the parent company of 202-220 million yuan, yoy + 68.2% ~ 83.23%, and the net profit deducted from non attributable to the parent company is expected to be 180-196 million yuan, yoy + 61.8% ~ 76.2%. In 2021q4, the net profit attributable to the parent company is expected to be 24-42 million yuan in a single quarter, and the net profit not attributable to the parent company is expected to be 27-43 million yuan. Considering that the increase of 2021q4 expenses and subsequent capacity expansion may bring cost pressure, we lowered the previous profit forecast. It is estimated that the company’s operating revenue from 2021 to 2023 will be RMB 2.73/32.9/4 billion (the previous value is RMB 3.04/40.9/5.17 billion), the net profit attributable to the parent company will be RMB 2.1/3.0/400 million (the previous value is RMB 240 / 3.5/440 million), and EPS will be RMB 0.91/1.27/1.70 (the previous value is RMB 1.02/1.48/1.87), The current share price corresponds to 20.5 / 14.7 / 10.9 times of PE. The company’s small, medium and large quantities of products form a one-stop solution with significant synergy and maintain the “buy” rating.
2021q4 runs smoothly month on month, and new server and on-board PCB products are continuously imported
The company’s 2021q4 orders ran smoothly, the price of raw materials superimposed on copper clad laminates fell, and the gross profit margin continued to repair. The net profit margin decreased seasonally due to the provision of sales expenses and management expenses at the end of the year. The company gives full play to the technical integration effect of mutailai, and the product line continues to improve, which is expected to drive the average unit price up. For example, the company cut into 6-layer PCB supply in the server field, resulting in dense lines and increased single board area; Develop radar, rearview mirror, instrument panel, seat and other products in the field of on-board PCB, and improve the safety and reliability; In the field of industrial control energy, it has been recognized by the head security manufacturer and imported 6-8-layer sectors. Mass procurement is expected to play a scale effect.
The company has entered a new round of production capacity launch period, and Mu Tailai integration is expected to boost the net interest rate
The company’s products are diversified, and gradually form a one-stop business model of R & D + small batch + medium batch + large batch + SMT mounting + finished product assembly. The layout of high-frequency / high-speed board, any interconnected RFPC / HDI and IC test board may become one of the manufacturers with the most perfect types of products, customers and orders. Looking forward to 2022, the company will enter a new round of production capacity launch period. It is expected to launch Longnan Junya precision production capacity of 800000 square meters and Zhuhai plant production capacity of 1 million square meters. Automated manufacturing will improve efficiency and boost the overall competitive strength.
Risk tip: the rising price of upstream raw materials leads to pressure on profits, the business integration of mutailai is less than expected, and the demand for PCB is weakened
