Performance summary: 202 1H1, the company achieved operating income of 1.96 billion yuan, an increase of 60.4% over the same period last year, and a net profit of 250 million yuan, an increase of about 111.5% over the same period last year.
The company's performance is in line with expectations, and the quality of earnings has improved steadily. 2021H1:1) from the revenue end, the company's single / double panel revenue of 430 million yuan, a year-on-year increase of 134.9%, accounting for 22.1% of revenue; four-layer board and above board revenue reached 1.42 billion yuan, an increase of 43.8% over the same period last year. 2) on the profit side, the company's gross profit margin is 24.3%, up 0.79 ppm from the same period last year; net profit is 12.8%, an increase of 3.07pp over the same period last year. 3) from the cost side, the company's sales expense rate is 2.6%, down 0.7 ppm from the same period last year; the management expense rate is 3.2%, down 3.3 ppm from the same period last year; and the R & D expense rate is 4.4%, up 0.4pp from the same period last year.
The company's PCB board technology is leading, with world-class high-quality customers. The company mainly produces PCB boards, which can be divided into single panel, double panel, four-layer board, six-layer board, eight-layer and above board according to the number of layers, which are widely used in automotive electronics, network and communications, computing and storage, industry and instrumentation and other fields. The company's downstream customers include Huawei, ZTE, Epson, Skyworth, Samsung, Siemens, Desai Xiwei, Lenovo, Asustek, XIAOMI and other high-quality customers. Adhering to the concept of technology leading and first-class quality, the company has set up a technology research and development center, and has core technology and independent intellectual property rights in the fields of automobile board, server, HDI, 5G communications and specific processing links.
We will further optimize the layout of production capacity and enhance the competitive advantage of middle and high-end products. The company's A1, A2 and A3 plants in Yiyang, Hunan have achieved mass production, and A6 and A8 plants in Huizhou, Guangdong Province are also expected to start production in 2021. The main products are distributed in computer and automotive electronics, network and communications, consumer, industrial control, medical, security and other fields. The company expects to reach a total capacity of 1.31 million square feet per month in 2022, and to ensure production performance and product stability while expanding production, taking standardization, automation and intelligence as the standard, steadily ploughing the R & D, production and sales of PCB boards. In addition, the company's "Zhaoqing Oshikang Science and Technology Industrial Park" project makes use of the regional advantages of the Great Bay area to fit the company's strategic layout, promote the continuous optimization of capacity distribution, and further enhance the market competitiveness of the company's middle and high-end products.
Profit forecast and investment advice. It is estimated that from 2021 to 2023, the company's EPS will be 3.43,5.20,7.08 yuan respectively, and the compound growth rate of homed net profit in the next three years is expected to reach more than 47%. We give the company 24 times PE valuation in 2022, corresponding to the target price of 124.87 yuan, covering it for the first time and giving it a "buy" rating.
Risk tips: COVID-19 epidemic repeatedly brought the risk of downstream demand uncertainty; the risk of raw material price fluctuations; the risk of exchange rate fluctuations.