According to the company's 2021 annual report, revenue in 2021 was 1.752 billion yuan, an increase of 35.88 percent over the same period last year, and net profit was 227 million yuan, an increase of 37.33 percent over the same period last year. Corresponding to 2021Q4's single-quarter revenue of 539 million yuan, an increase of 52.09% over the same period last year. Q4 returned to its mother in a single quarter with a net profit of 57.42 million yuan, an increase of 22.48% over the same period last year.

The company is deeply engaged in the global electronic manufacturing market and has established cooperative relations with more than 270customers in various industries around the world, involving more than 5000 products and more than 60000 kinds of raw materials. The company's products cover industrial control, communications, medical electronics, automotive electronics and consumer electronics five major application areas, to provide global customers with high-quality, multi-variety, fast and flexible electronic manufacturing services. In 2021, revenue from corporate communications, industrial control, consumer electronics, medical electronics and automotive electronics all maintained growth, with higher revenue growth for industrial control and medical electronics products. The revenue of industrial control business reached 729 million yuan in 2021, an increase of 35.68 percent over the same period last year, while that of medical electronics business reached 331 million yuan, an increase of 59.21 percent over the same period last year.

During the period, in order to cope with the global shortage of electronic materials, especially the supply of chips, the company organized a material tracking team headed by the general manager to take a series of measures to deal with the supply shortage. The company previously cooperated with the world-famous semiconductor company Texas Instruments Inc (TI) to complete the development and testing of the function of the direct data docking system with its ERP system, and realized the use of EDI data exchange system, which greatly improved the timely delivery and processing of purchase forecasts and orders. In 2021, the company further promoted the application of the system, and realized the EDI data exchange system with Digikey, Arrow, Avnet and other major suppliers, ensuring the timely delivery of products, and providing a solid foundation for the company to improve management efficiency in the future.

The company currently has a R & D team of more than 250 people, which can provide customers with diversified services, including new product design, product update design, device replacement design and assisting customers in the pre-R & D phase according to their direct needs or changes in market demand. to provide customers with effective value-added services to better enhance customer stickiness. In 2021, the company's R & D investment reached 78.91 million yuan, an increase of 46.81% over the same period last year, accounting for 4.50% of revenue. During the year, the company laid out big data, 5G Internet, autopilot, solar and wind energy business, developed a number of potential new customers, laid the foundation for the follow-up high-speed development.

The global EMS industry is showing a growing trend. According to the report of New Venture Research, the size of EMS industry in 2020 is 594.7 billion US dollars, benefiting from the vigorous development of various sectors, it is expected to reach 838.3 billion US dollars by 2025. The industry has strong barriers to entry, and the company has excellent competitiveness in flexible production, lean manufacturing, process technology, customer relations and other aspects, and is expected to significantly benefit from the sustained growth of the industry.

[investment advice]

It is estimated that the revenue from 2022 to 2024 is 22.91,29.25 and 3.614 billion yuan respectively, the net profit is 3.06,4.08 and 500 million yuan respectively, the corresponding EPS is 1.90,2.53,3.10 yuan per share respectively, and the corresponding PE is 17,13,11 times respectively.

[risk Tip]

The market demand is lower than expected.

It is difficult to alleviate the shortage of materials.

Exchange rate fluctuates violently