Event: the company released its quarterly report for 2021: the total operating income was 379 million yuan, + 38.26% compared with the same period last year; the net profit was 83 million yuan, + 40.43% compared with the same period last year, exceeding our expectations; the net profit after deducting non-return was 81 million yuan, + 41.16% compared with the same period last year.
Main points of investment
Q3 performance growth accelerated marginally, capacity release promoted in the second half of the year, Q3 achieved revenue of 146 million yuan, + 44.56% compared with the same period last year, and net profit of 35 million yuan, + 63.03% compared with the same period last year, which is faster than that of the first half of the year. We judge that it is mainly due to the accelerated release of production capacity in the second half of the year.
By the end of the third quarter of 2021, the company's other non-current assets totaled 587 million yuan, an increase of 47.80% over the beginning of the year, mainly due to an increase in prepaid equipment. With the delivery of production equipment, the company's Q4 performance is expected to maintain rapid growth.
We expect the company to be full of orders on hand, laying the foundation for high annual performance growth. The company said on the investor interaction platform on September 8th that it had sufficient orders and was actively implementing production capacity in accordance with the annual plan. By the end of the third quarter of 2021, the company's inventory was 91 million yuan, an increase of 77% over the beginning of the year, mainly due to an increase in the preparation of materials to meet customer order needs in the current period; the contract debt was 711200 yuan, an increase of 1% over the beginning of the year and-50% compared with the previous year. We judge that the company's capacity is released faster in the second half of the year and the order cycle is shortened. In the first three quarters of 2021, the company's net operating cash flow was 7.467 million yuan,-91% compared with the same period last year, of which "cash paid for goods and services" increased significantly to 196 million yuan, + 72% compared with the same period last year. We judge that it is due to the increase in the company's expected order volume and raw material procurement.
Continuous improvement in profitability and contribution to performance flexibility
In the first three quarters of 2021, the company's sales gross profit margin was 39.18%, year-on-year + 0.11pct. We judged that the growth of high-margin business was higher than that of the company as a whole; the return net profit margin in the first three quarters was 21.90%, year-on-year + 0.37pct. Cost capacity optimization, during the first three quarters of 2021, the expense rate was 10.62%, year-on-year-1.84pct, and the fee control ability improved continuously, of which the management / R & D / sales / financial expense rates were 5.76%, 3.00%, 1.90%, 0.03%, respectively, compared with the same period last year. The management expenses are mainly affected by the company's listing expenses in the short term. The financial expenses are mainly caused by changes in the exchange rate.
Semiconductor precision metal parts manufacturer, the industry expansion to meet the golden development period of the company's main semiconductor precision metal parts, high-quality customer resources, has been cut into AMAT, micro and other leading supply chain system, with scarcity. According to the company's interim report, the June equipment Market data (EMDS) turnover report released by SEMI in July 2021 showed that the global revenue of North American semiconductor equipment manufacturers in June 2021 was $3.67 billion, + 2.3% month-on-month, and + 58.4% year-on-year. On July 13, 2021, SEMI, in its report "Semiconductor Manufacturing equipment Mid-year General Forecast-OEM Perspective", predicted that the revenue of global semiconductor equipment manufacturers would reach US $95.3 billion in 2021, a year-on-year increase of + 34%. Sales are expected to reach a new high of US $100 billion in 2022. The report tracks investment, capacity, products and technology in fab construction and equipment from 2021 to 2022, considering that it will take up to two years for many semiconductor manufacturers to achieve after groundbreaking, so it is expected to maintain long-term equipment growth demand. The company's products cover the main semiconductor equipment and are expected to directly benefit from the wave of semiconductor equipment expansion.
Profit forecast and investment rating: the downstream prosperity of the company is good, and the production capacity is released smoothly. We have raised the company's net profit forecast for 2021-2023 from 1.03 to 164,000,000 yuan, and raised the current market capitalization corresponding to PE to 37max, 23x16X, respectively, to maintain the "overweight" rating.
Risk tips: semiconductor industry fluctuation risk; gross profit margin decline risk; customer industry transfer risk.
