Event: the company disclosed its annual report on April 18, 2022. In 2021, the company realized operating income of 530 million yuan, year-on-year + 43.93%; net profit of 111 million yuan, + 54.67%; and non-return net profit of 106 million yuan, + 53.38% of the same period last year.
Main points of investment
Single Q4 revenue growth accelerated, production capacity increased quarter-on-quarter
In 2021, the semiconductor equipment industry chain is in short supply, and the company's capacity is improving quarter-on-quarter. In 2021, the revenue of single Q4 company reached 151 million yuan, + 60% compared with the same period last year, and the revenue of single Q3 increased by 146 million yuan; the net profit of single Q4 was 28 million yuan, an increase of 120% over the same period last year, and the net profit of Q3 decreased slightly compared with the previous year, which was mainly due to the fluctuation of Q4 profit margin. The expense rate of 2021Q4 during the single quarter is 17.4%, which is higher than that of Q3 by 9.5pct, which is mainly due to the increase in employee salary and exchange rate changes.
From the perspective of products in 2021, (1) Precision metal structures: the total income is 520 million yuan, which is + 43.6% of the same period last year. We judge that it is mainly driven by the high prosperity of the company's largest downstream semiconductor equipment. (2) maintenance of semiconductor equipment: revenue totaled 7 million yuan, + 55.3% compared with the same period last year. The company's downstream customers are mainly overseas semiconductor assembly plants such as Colin and ICHOR. The company's overseas revenue is 310 million yuan, + 80% compared with the same period last year; domestic revenue is 220 million yuan, + 12% year-on-year. We judge that the overseas market is in short supply.
Sufficient orders on hand, laying the foundation for performance growth in 2022
We judge that the company has sufficient orders on hand and the capacity improvement trend is improving, laying the foundation for performance growth in 2022: ① 2021 net operating cash outflow of 400 million yuan, year-on-year + 49.6%, mainly due to the purchase of raw materials growth; ② 2021 company inventory of 110 million yuan, year-on-year + 113.2%, month-on-month + 20.6%, mainly due to an increase in orders At the end of 2021, the company's fixed assets were 90 million yuan, which was 8.2% higher than the same period last year, and the production capacity was increased by + 7.8% ③ 21Q4, laying the foundation for performance growth in 2022.
Maintain a high level of profitability and optimize product structure
In 2021, the company's comprehensive gross profit margin was 39.4%, year-on-year-0.5pct, and home net profit margin was 21.0%, year-on-year + 1.5pct.
The slight decline in gross profit margin was mainly due to higher prices of raw materials and shipping, while high gross margin business hedged some negative effects.
In 2021, the company's expense rate is 12.6%, year-on-year-2.4pct, in which management / R & D / sales / financial expense rates are 6.3%, 3.2%, 2.0%, 1.1%, respectively, year-on-year + 0.1pct/-0.7pct/-0.8pc/-0.9pct, the scale effect is prominent.
It is proposed to issue no more than 340 million yuan of convertible bonds to expand production, and the company will issue convertible bonds to raise no more than 340 million yuan on April 19, 2022 to meet the gold development period in the next three years. It is expected to ease the company's capacity bottleneck in the construction of new projects for intelligent production of precision metal components in areas such as semiconductor equipment. The company has cut into the global semiconductor equipment leading supply chain system such as AMAT and LAM, and will continue to benefit from downstream wafer expansion and domestic replacement of spare parts in the future, and welcome the golden period of performance growth in the next three years.
Profit forecast and investment rating: the downstream prosperity of the company is good, and the release of production capacity is smooth. We maintain the company's net profit forecast of RMB 180 million in 2022-2023 and RMB 390 million in 2024. The current market capitalization corresponds to a PE of 25x17x11X respectively, maintaining the "overweight" rating.
Risk tips: semiconductor industry fluctuation risk; gross profit margin decline risk; customer industry transfer risk
