Steady growth will be achieved in 2021. According to the company's 2021 annual report, revenue in 2021 was 12.86 billion yuan, an increase of 21.31 percent over the same period last year, and net profit was 362 million yuan, an increase of 40.33 percent over the same period last year. Non-net profit was deducted from 286 million yuan, an increase of 38.31 percent. The company's return net profit decreased by about 78 million yuan compared with the previous median performance forecast, mainly due to the adoption of a more prudent accounting policy for the provision for inventory decline, with an additional provision of about 22 million yuan for inventory decline loss, and the company's inventory size was 1.321 billion yuan in 2021. The inventory turnover rate reached 7.72 times. Secondly, due to the adjustment of accounting policy, the additional deduction of R & D expenditure in 2021 is about 55 million yuan to 2022. During the period, the company's business continues to invest resources to build a smart factory and build core competitiveness. Forward-looking reserve to drive IC as the core of the key materials to ensure the timely delivery of the company's products in the context of chip shortage. The implementation of the company's key customer strategy is good, the core customers continue to expand, the company's liquid crystal display module product structure is constantly optimized, and the sales scale of optical camera module business continues to improve.
All business sectors achieved year-on-year growth. In 2021, the company's LCD module business achieved revenue of 9.77 billion yuan, an increase of 21.56% over the same period last year, revenue of camera products reached 2.198 billion yuan, an increase of 8.84% over the same period last year, and revenue of other businesses reached 893 million yuan, an increase of 63.95% over the same period last year.
Since its inception, through years of technology and customer accumulation, the market competitiveness has been continuously improved, the level of production technology, the ability to quickly respond to customer demand, and the ability to control production costs are in a leading position in the industry. The company maintains long-term and stable cooperative relations with major global brand mobile phone manufacturers such as OPPO, vivo, Samsung, Voice and Glory, as well as major domestic ODM manufacturers such as Wentai Technology, Huaqin Communications and Dragon Flag Holdings.
Enter the advanced closed testing industry and actively promote the layout of the industrial chain. In October 2021, the company announced the newly signed "Project Cooperation Framework Agreement" with Kunshan Riyue, intending to invest and set up a wholly-owned subsidiary in Kunshan to implement the "Chip Gold Bump (GoldBump) full-process closed testing project", which is mainly used in the closed testing field of display driver chips. According to Sullivan data, the global closed test market for display driver chips will reach US $3.6 billion in 2020 and is expected to reach US $5.61 billion in 2025, with a CAGR of about 9.28%. The first phase of the company's project is expected to build a 12-inch full-process gold bump factory with a monthly capacity of 20,000 pieces, which is scheduled to be put into production by the end of 2022. The company promotes the closed testing business into display driver chips, realizes the layout of the upper reaches of the industrial chain, and realizes vertical integration, which is expected to play a long-term positive role in the company's advanced technology research and development, supply chain security and procurement cost optimization.
[investment advice]
The company's customer advantage is obvious, after years of deep ploughing in the industry, with high-quality product quality, around the core customers to become bigger and stronger. In terms of manufacturing capacity, the company continues to optimize the whole process information production management system, and the intelligent manufacturing capacity of production line automation, which greatly improves the efficiency of production management. In terms of technology research and development, on the premise of maintaining the advantages of current products, the company actively arranges cutting-edge technology research, including flexible OLED, MiniLED, MicroLED and other liquid crystal display technology, optical zoom, ToF, structured light and other optical camera technology. The company's revenue in 2021 exceeded our previous expectations, and its net profit was lower than we had expected. We maintain the 2022 revenue forecast, adjust the 2023 revenue forecast, reduce the gross profit margin, adjust the expense rate during the period, and increase the 2024 profit forecast.
It is estimated that the revenue from 2022 to 2024 is 146.94 yuan, 165.67 yuan and 18.266 billion yuan respectively, and the net profit is 5.30,6.45 and 688 million yuan respectively, the corresponding EPS is 2.26,2.75,2.93 yuan per share respectively, and the corresponding PE is 9,8,7 times respectively.
[risk Tip]
The market demand is lower than expected.
The cost of raw materials and logistics continues to rise.
The pattern of market competition is deteriorating.
