\u3000\u3000 Jcet Group Co.Ltd(600584) (600584)
The pre increase of performance is in line with expectations, the growth momentum is sufficient, and the “buy” rating is maintained
On January 24, 2022, the company issued the announcement of pre increase of performance in 2021. It is expected that the company will realize the net profit attributable to the parent company of 2.8 billion yuan to 3.080 billion yuan in 2021, with a year-on-year increase of + 114.72% ~ + 136.20%; Net profit deducted from non parent company was RMB 2.35 billion to RMB 2.580 billion, with a year-on-year increase of + 146.85% ~ + 171.01%. It is calculated that the net profit attributable to the parent company in the single quarter of 2021q4 is 684 million yuan ~ 964 million yuan, with a year-on-year increase of + 26.67% ~ + 78.52% and a month on month increase of – 13.75% ~ + 21.56%; Net profit deducted from non parent company was 677 million yuan to 907 million yuan, with a year-on-year increase of + 113.56% ~ + 186.12% and a month-on-month increase of -7.89% ~ + 23.40%. Benefiting from strong demand from customers outside China and full orders. At the same time, the company’s factories continue to adjust the product structure, reduce costs and increase efficiency, effectively improve the gross profit margin and have sufficient growth momentum. Affected by investment profits and losses, we lowered the profit forecast for 2021-2023 to RMB 3.059/37.25/4408 billion (the previous value of RMB 3.092/37.26/4409 billion), and the EPS is expected to be RMB 1.72/2.09/2.48 (the previous value of RMB 1.74/2.09/2.48). The current share price corresponds to PE of 16.3/13.4/11.3 times, Maintain the “buy” rating.
The semiconductor industry is booming, and the company continues to focus on high value-added fields with promising prospects
The high growth of the company’s performance is mainly due to the company’s continuous focus on high value-added and fast-growing market hot application fields, integration and improvement of global resource efficiency, strengthening the synergy, technical capacity and capacity layout among the companies under the group, so as to better match the needs of the market and customers, create a long-term mechanism for long-term and stable growth of performance, and make the company’s operations positive. At the same time, the demand for orders from international and Chinese customers is strong. Factories continue to increase cost control and operating expense control, adjust product structure and comprehensively promote the improvement of profitability. During the reporting period, the company sold all the equity of sjsemiconductor Corporation held by its wholly-owned subsidiary Changdian International (Hong Kong) trade and Investment Co., Ltd. to an independent third party, affecting the current investment profit and loss of 286 million yuan. Affected by the domestic substitution of integrated circuits, the acceleration of 5g construction, the growth of consumer electronics and automotive electronics demand and other factors, the integrated circuit market demand continues to be strong. According to icinsights data, after a strong growth of 26% in 2021 and a jump of 13% in 2020, the global integrated circuit market is expected to grow by 11% to US $565.1 billion in 2022. TSMC disclosed at the legal statement meeting on January 13, 2022 that the capital expenditure in 2022 reached US $40-44 billion, higher than the industry forecast of US $38-42 billion. The capital expenditure of Wafer Factory is the leading indicator of production capacity. In the future, the wafer production capacity and packaging and testing demand will also continue to improve, and the company’s prospect is promising.
Risk warning: the development of customers is less than expected and the market demand is less than expected.
