The company's 2021Q2 performance is in line with expectations, and the production capacity of Toyama's new factory is in line with expectations. The company released its "buy" rating company's semi-annual report in 2021, 2021H1 realized operating income of 1.34 billion yuan, YoY+36.3%, returned to its mother net profit of 96 million yuan, YoY+74.9%, of which 2021Q2 achieved operating income of 710 million yuan in a single quarter, QoQ+12.6%/YoY+23.6%, returned to its mother's net profit of 54 million yuan, QoQ+25.6%/YoY+51.5%, performance was in line with expectations. We maintain our previous profit forecast that the company's operating income for 2021-2023 is expected to be 30.5 soybean 443 million 5.98 billion yuan, the net profit of return to the mother is 2.2 million pound 40 million, the YoY+35.9%/81.3%/34.3%,EPS is 0.36 pm 0.66 pm 0.88, the current share price corresponds to 31.6 max 17.4 pm 13.0 times, taking into account the production capacity of the company's Toyama plant. PCB segment area product layout is comprehensive, maintain the "buy" rating.
Downstream HDI and FPC products maintained a high demeanor, promoting significant revenue growth in new displays such as LED/MiniLED, new energy vehicles, security industrial control and other downstream areas, which led to the growth of the company's orders. Due to the rise in raw material costs, the gross profit margin decreased slightly compared with the previous quarter. 2021Q2 single-quarter gross profit margin was 20.0% QoQQ 1.3 pct, and the improvement of operating efficiency led to cost optimization during the period. 2021Q2 net profit rate was 7.6% QoQuan 0.8 pct. From a sub-business point of view, the company's rigid circuit boards (including HDI) and flexible circuit boards achieved high growth over the same period last year, 2021H1 rigid PCB revenue of 910 million yuan, YoY+40.0%,HDI and MLB product class promotion, flexible PCB income reached 190 million yuan, YoY+26.7%. The operating efficiency of the original plant has been improved. The operating income of Huizhou Zhongjing has reached 950 million yuan, and the net interest rate of YoY+45.2%, has reached 8.3%.
Toyama plant fully put into production, IC board to form a single production line Toyama plant is the company's PCB high-end category of the main carrier, product planning to HDI, HLC-based, has been successfully put into production and contributed part of the income, subsidiary Zhuhai Zhongjing Electronics 2021H1 total assets of 1.52 billion yuan, operating income of 1.802 million yuan, net profit of-3.653 million yuan, as the new factory in Zhuhai is in the capacity climbing period, has not yet achieved profit. The company develops IC carrier plate products, and invests and sets up a single IC carrier plate production line in Fushan factory in Zhuhai, which is expected to achieve mass production at the beginning of 2022. The company has stored large-scale IC board products project land in Zhuhai Gaolan Port Economic Zone, and the follow-up IC board professional factory in Zhuhai Gaolan Port is expected to be built and put into production.
Risk hints: weaker downstream demand leads to lower-than-expected production expansion, lower CCL prices lead to impaired profitability, upstream raw material prices erode costs, and competition in high-speed CCL industry intensifies.
