Introduction to this report:
The company's 2021 performance is in line with market expectations. With the continuous expansion of its PCB production capacity in the first phase of Zhuhai in 2022 and the construction of an intelligent production line, the company's performance will further open up room for growth.
Key points of investment:
Maintain the increase rating and lower the target price to 20.01 yuan. Considering the impact of the epidemic on terminal shipments, the 2022/2023 EPS was lowered to 0.87 (-0.16) /1.05 (-0.28) yuan. The 2024 EPS is expected to be 1.35 yuan, giving it 23 times PE in 2022, and lowering the target price to 20.01 yuan.
The company's 2021 results are in line with expectations. The company achieved revenue of 5.996 billion yuan in 2021, +37.27% year on year, net profit of 554 million yuan, +25.70% year on year, net profit of 521 million yuan after deduction of net profit of 521 million yuan, +32.85% year on year. The increase in performance was mainly due to the commissioning of the first phase of the Chongda project in Zhuhai and the rapid growth in the carrier board business of the holding subsidiary Punowei IC.
Production capacity has been released at an accelerated pace, and smart factories have significantly increased profit levels. The first phase of the company's Zhuhai project was put into operation in 2021Q2, and the net interest rate in 2021 reached 18.49%. In 2022, the company plans to add two new production lines to the first phase plant in Zhuhai, and production capacity is expected to double. At the same time, the company plans to invest 3.651 billion yuan in the construction of the second phase of the Zhuhai project. It is expected to start construction within 2022. The construction cycle is two years, reaching 1.08 million square meters of high multi-layer board and 420,000 square meters of HDI annual production capacity after delivery. Furthermore, the company's Jiangmen HDI factory has already introduced mobile terminals, which will contribute to revenue growth one after another.
It is proposed to launch a new round of equity incentive plans, demonstrating the company's confidence in long-term development. The company announced a 2022 equity incentive plan to award a total of 17.51 million restricted shares to the company's 255 executives, core technical personnel, etc. The benchmark conditions for performance evaluation were: Net profit for 2022-2024 (net profit returned to the parent after deduction of incentive payments) was not less than 6.46/8.34/1,126 million yuan (2022-2024 CAGR is 32%), further demonstrating the company's confidence in long-term development.
Risk warning. Risk of worsening of the epidemic; impact of sharp fluctuations in raw materials