Due to the drag on the communications business led to a decline in performance, taking into account that the company is in a period of improvement, to maintain the "buy" rating company released the 2021 semi-annual report, 2021H1 achieved operating income of 1.69 billion yuan, YoY-11.4%, home net profit of 130 million yuan, YoY-56.6%, of which 2021Q2 single-quarter operating income of 890 million yuan, YoY-21.8%, home net profit of 65 million yuan, YoY-66.0%. Taking into account the pressure in the first half of the year, we reduce the company's operating income forecast for 2021-2023 to 40.8 pound 51.1pm 59.9 (the previous value is 43.8x56.1), and the net profit of return to the mother is 3.7pm 5.6max 6.9 (the previous value is 5.3max 74max 8.9), and the EPS is 0.45max 0.68pm 0.83 yuan respectively. The current share price corresponds to the company's PE of 31.4, 20.7, 16.9 times in 2021-2023. Taking into account the company's position in the PCB field, 2021H2 is expected to usher in the factory and customer adjusted business improvement, maintain the "buy" rating.
The construction cycle of the communications industry is relatively depressed and the cost side is rising. 2021H1 is under pressure on profits. From the sales dimension, the company actively adjusts its product structure and increases orders for servers and automotive electronics, doubling compared with the same period in 2020, with 2021H1 PCB sales of 506 million square meters and YoY+29.0%, output of 531 million square meters, YoY+29.2%. From the perspective of profitability, due to the centralized shipments brought about by the construction of 5G base stations in 2020, the product premium is significant, resulting in a low performance of 2021H1 in the case of a high base of 2020H1, the average unit price and gross profit margin of products have declined, and the average unit price of the company's products has dropped from 4859 yuan / square meter to 3339 yuan / square meter, YoY-31.3%. Affected by the rise in the price of copper clad laminate raw materials, the company cut costs in time to increase efficiency, and the gross profit margin decreased slightly compared with the previous month. 2021Q2 gross profit margin was 20.8%.
The PCB technology card position advantage is remarkable, the server, the automobile PCB product accumulates abruptly the technical dimension, the company reserves the high speed low loss (112Gbps) PCB, the intelligent automobile radar control system and so on the core technology, the active card position server, the automobile PCB market. In the capacity dimension, the production capacity of the Wanjiang branch of the company has been transferred to Ji'an Shengyi, and 2021H1 is in the stage of increasing production and climbing, and capacity will be released in the second half of the year. in addition, the fourth phase of the Dongcheng plant, the first investment project, has been built to a maximum of 6 storeys. Looking forward to 2021H2, the construction cycle of the communications industry has entered a normal period, the server market Whitley platform has entered the delivery period and gradually switched to the next-generation X86 architecture EagleStream platform, the server board PCB will drive the company's revenue side and profit side to usher in an inflection point.
Risk tips: the company's Dongcheng and Jian plant capacity adjustment is lower than expected, core network type PCB customer introduction is not expected, upstream raw material copper clad laminate price increase erodes profits, server shipments are not as expected