Event
The company issued a performance forecast for 2021 on the evening of January 20. It is expected to achieve a net profit of 130 million yuan to 140 million yuan in 2021, an increase of 90.57% to 105.23% over the same period last year, and a net profit of 121 million yuan to 133 million yuan, an increase of 130.70% and 154.63% over the same period last year.
Comment
Q4 performance is in line with expectations. The company's 2021 Q1-Q3 homing net profit is 104 million yuan, and Q4 homing net profit is 26 million yuan to 36 million yuan, a decrease of 14% 38% compared with the previous month. The main reason is that the Vietnamese subsidiary stopped production in July 21 due to the epidemic, resumed production in December 21, and is currently operating normally. The amount of non-recurrent profit and loss of the company in 2021 is expected to be 7 million yuan to 9.5 million yuan, mainly for government subsidies. The company has a strong market demand for permanent magnet ferrite products, raising and investing 8000 tons of capacity has been gradually released, and capacity utilization has reached a high level. Revenue is expected to grow by 38% in 2021, and profitability will be improved.
Permanent magnet production capacity is gradually released, expanding production to seize market share. The company's main products are high-performance wet-pressed magnetic tiles, which are ferrite permanent magnets and are the core components of downstream micro-special motors. In May, 20 years, the investment of 8000 tons of high-performance permanent magnet ferrite wet pressure magnetic tile production line project has released part of the production capacity, will fully reach production in February 22, the company's current production capacity of 33,000 tons / year, the company plans to start 22 years of annual production capacity of 10, 000 tons, by the end of 24 to achieve 60, 000 tons, mainly relying on the old line transformation + new line put into production. The company's wet-pressed magnetic tile gross profit margin is among the highest in the industry, maintaining around 35% and 40% in recent years.
Soft magnetic integration industry chain layout, to create the second growth curve. The company's soft magnetic project officially started construction in 20 years, from powder preparation, magnetic core products (metal magnetic powder cores, ferrite powder cores) and device products (inductors) to promote the whole industry chain synchronously. At present, the annual production capacity of iron-silicon-aluminum and iron-silicon metal powder cores has been put into production; 12 million high-frequency magnetic devices (inductors) have been put into production in the first phase. In the second phase of construction, the total annual production capacity of inductors is 50 million, and high-performance soft magnetic ferrites are planned to be 6000 tons. In December 21, the company wholly acquired Bo Wei Xin Magnetic, which is further extended to the fields of chip inductors and power electronic components.
Profit Forecast & Investment suggestion
It is estimated that the net profit of the company from 21 to 23 is 136 million yuan, 199 million yuan and 289 million yuan respectively, the EPS is 1.92,2.82,4.09 yuan respectively, and the PE is 40 times, 27 times and 19 times respectively.
Maintain a "buy" rating.
Risk hint
The risk of downstream demand fluctuation, the risk of new product development, the risk of loss of technical personnel, and so on.
