2021Q2 performance in line with expectations, capacity to cash in, maintain the "buy" rating company released the 2021 half-year report, 2021H1 achieved operating income of 1.96 billion yuan, YoY+60.4%, return net profit of 250 million yuan, YoY+111.5%, of which 2021Q2 single-quarter operating income of 1.07 billion yuan, QoQ+16.8%/YoY+45.9%, return net profit of 142 million yuan, QoQ+23.2%/YoY+52.2%. We maintain our profit forecast that the company's operating income for 2021-2023 is expected to be 40.4 million RMB 56266 billion, the net profit from its parent is 5.4pm 7.4pm, YoY+54.0%/38.0%/20.7%,EPS is 3.39pm 4.67max 5.64RMB, and the current share price corresponds to 31.9 PE 19.1 times for 2021-2023. The company's operating income is estimated to be 56.266 billion yuan, respectively, with a net profit of 5.4pm 7.4x900 million and 3.39pm 4.67max respectively in 2021-2023. Considering that the PCB industry is in a high boom, 2021-2022 is also a big year for the company to realize its production capacity, maintaining its "buy" rating.
The application of Mini-LED promotes the acceleration of production capacity, and the rising cost of raw materials leads to a boom in supply and marketing of PCB products of the company under pressure. 2021H1 completes the capacity climbing of the Huizhou A5 plant. In the case of a sharp increase in Mini-LED demand from downstream customers, the company releases the production capacity of the Zhaoqing A9 plant ahead of schedule for supporting major customer orders. At the profit end, 2021Q2's single-quarter gross profit margin is 22.6% QoQmur3.6pctUnix YoYMUE 1.5pct. On the one hand, copper clad laminate prices rise, PCB material cost pressure increases, the company to the downstream transmission price is time-lag, is expected to improve 2021Q3; on the other hand, the company in the industry to take the lead in the implementation of large typesetting production mode, the original "24 inches * 28 inches" typesetting model improved to 2 "25 inches * 43 inches" oversized stable assembly lines, to achieve production efficiency optimization, partially offset the cost-side uplink pressure. With the improvement of internal benefits, the expense rate has also declined during the period. The net profit rate of 2021Q2 per quarter is 13.3% QoQQ 1.1 pct.
The continuous release of production capacity and the improvement of internal management efficiency is that the medium-and long-term core competitiveness company has three major production bases in Huizhou, Yiyang and Zhaoqing. Since 2019, it has invested in Zhaoqing Aoshikang Science and Technology Industrial Park, with a total investment of not less than 3.5 billion yuan. At present, Zhaoqing factory has entered the stage of trial production, producing high-end automobile PCB, any layer interconnection HDI and other products, reserve IC/BGA chip package carrier board, soft and hard board and other products. It is expected that the company will continue to release the production capacity of the Zhaoqing plant in 2022. The company deepens the standardized production process and carries out technological upgrading and innovative design of the original key equipment, which can expand the management radius, improve production efficiency and reduce costs.
Risk tips: the company's production capacity is not digested as expected, the intensification of industry competition leads to the decline of company product prices, the company's cost improvement is not as expected, and the demand of PCB industry is depressed.