Event
After April 19, the company disclosed its annual report for 2021 and its first quarter report for 2022:
① achieved operating income of 4.435 billion yuan in 2021, an increase of 52.38% over the same period last year; net profit of 490 million yuan, an increase of 40.35% over the same period last year; and net profit of 436 million yuan, an increase of 49.75% over the same period last year.
In the first quarter of 2022, ② achieved operating income of 1.058 billion yuan, an increase of 18.58% over the same period last year; net profit of 149 million yuan, an increase of 37.34% over the same period last year; and net profit of 110 million yuan, an increase of 6.34% over the same period last year.
Expand production to release performance flexibility, automotive, server products outstanding performance of the company's 21-year performance in line with expectations. In the environment of rising prices of bulk raw materials and tight supply, increased production costs and the continued impact of the epidemic in PCB, the company's business continues to grow substantially, mainly due to:
① 's new capacity expansion has completed trial production and mass production, adding new strength to the company's capacity reserves. By the end of 21, the company's total PCB production capacity exceeded 1.7 million square meters per month, with a total annual output of nearly 7 million square meters, a year-on-year increase of 58 percent. Among them, the new production capacity is mainly Yiyang A1, A2, A3 plants and Zhaoqing A6, A8, A9 factory base, and its downstream applications are automotive electronics, AR/VR metacosmos related products, Mini LED, servers, high-end consumer electronics and other products. At present, the company's new production capacity climbs smoothly and the factory space is abundant, so there is still a lot of room for production expansion in the future.
② company in the automotive electronics, servers, Mini LED and other PCB golden track layout earlier, the first-mover advantage brings the rapid growth of product business, rapid growth. At present, the company has accumulated a number of high-quality automobile and server customers, including BergWarner, BYD, Siemens, Chao, Hewlett-Packard, and so on. In the past 21 years, the company's revenue from automotive electronics has increased by more than 40%, and that of servers by more than 200%.
The profitability continues to improve and the performance can continue to grow.
Company Q1 non-recurrent income of nearly 40 million yuan, mainly due to the government subsidies to qualified excellent enterprises. Under the background of the disturbance of the epidemic and the decline in consumer demand, the company's Q1 net profit still maintained positive growth compared with the previous quarter; at the same time, thanks to the continuous price reduction of upstream CCL and the application of large jigsaw puzzle technology, the company's profitability continued to improve, and the gross profit margin level has achieved two consecutive quarter-on-quarter growth. We believe that with the continuous commissioning of new production capacity, the weakening of the impact of the epidemic and the continuous improvement of the company's own profit quality, the company's 22-year performance can continue to grow.
Investment suggestion
We expect the company's 2022-2024 net profit to be 6.54,8.88 and 1.154 billion yuan, corresponding to a price-to-earnings ratio of 16,12 and 9 times, maintaining a "buy" rating.
Risk hint
The commercial process of Mini LED is not as expected, and the sales of new energy vehicles are not as expected.