The results of business integration showed that it ended smoothly in 2021, and maintained the "buy" rating company to release the 2021 annual report, achieving operating income of 2.73 billion yuan, YoY+32.0%, return net profit of 210 million yuan, YoY+72.74%, deduction of non-return net profit of 180 million yuan, YoY+62.3%. We maintain our previous profit forecast and add to our 2024 forecast that the company's 2022-2024 net return profit is expected to be 3.0 shock 4.0 / 550 million yuan, YoY+46.5%/32.3%/36.7%,EPS 1.30 shock 1.72 shock 2.35 yuan, and the current share price is 11.9 shock 9.0 PE 6.6 times. The company's small-batch, medium-batch and high-volume products form an one-stop solution. Longnan large-scale production and Mutailai technology card have a significant synergistic effect, maintaining the "buy" rating.
2021Q4 gross profit margin improved compared with Q3, and product structure adjustment pushed up the average unit price. The proportion of operating income of the company's three major businesses, PCB, SMT and the whole machine, was 92.1%, 2.2% and 1.2%, respectively. Among them, the sales of PCB business was 323.0 million square meters, and the average unit price of YoY+0.3%, was 777.4 yuan per square meter. On the one hand, the average unit price of PCB products of YoY+25.3%, Company increased significantly due to the rise in raw material costs. The company transmits cost pressure downstream, on the other hand, the company increases photovoltaic energy orders and reduces the proportion of consumer electronics products, promoting the diversification of the company's product structure. The company's model and small and medium-sized batch boards have grown steadily, Mutailai simulated merger to achieve operating income of 510 million yuan, YoY+29.6%, home net profit of 72.176 million yuan, YoY+0.6%, Mutailai has the technical public relations ability to drain medium-batch orders and excavate customers' high-volume orders.
Expand application areas and focus on the introduction of emerging markets, intelligent chemical plants to optimize profitability companies actively reserve and introduce emerging market resources, the number of customers and applications to expand and enhance. The product application end, the vehicle domain product carries on the sample authentication or the small batch production, the soft board maintains the lithium battery product subdivision market advantage. On the customer reserve side, a wholly-owned subsidiary has been set up in Japan to expand customers in Japan and Southeast Asia, and the proportion of the top five customers has dropped from 27.2% in 2020 to 21.9% in 2019. The company carries on the technical transformation such as intelligent manufacturing in Longnan base in Jiangxi Province, and promotes the specialized service capability of vehicle PCB by means of equipment upgrade and process capability enhancement. Long Nan Junya is expected to form an "Internet of things + big data" intelligent factory to further optimize yield and profitability.
Risk tips: rising prices of upstream raw materials lead to profit pressure, Mu Tailai business integration is not as expected, PCB demand weakens.