Main points of investment
Event: the company released the 2021 annual report and the first quarter report of 2022, the annual operating income in 2021 was 1.24 billion yuan, + 96.6% compared with the same period last year, and the net profit was 240 million yuan, + 533.5% compared with the same period last year. 2022Q1 realized revenue of 260 million yuan, + 4.3% year-on-year, and net profit of 70 million yuan, + 93% year-on-year.
Demand surge + domestic replacement of two-wheel drive, annual performance hit an all-time high. Throughout the year, under the background of sustained strong demand in downstream application fields such as the Internet of things, the Internet of cars, 5G and domestic substitution, the structure of products and customers has been continuously optimized, and the new production capacity has been put into production to ensure high value-added advantages. the performance reached a record high. On the revenue side, the revenue of self-produced SMD chip products was + 141.8% compared with the same period last year, of which the revenue of kHz series products (lithography crystals) was + 393.7% compared with the same period last year. On the gross margin side, the gross profit margin increased by 20pp to 41.3% in 2021, mainly due to the increase in the price of self-made SMD chip products, the increase in the output of high value-added products, and the optimization of product structure. The gross profit margin of SMD products increased 18.7pp over the same period last year. At the same time, the company's cost control is good, and the expense rate for the whole year of 2021 has been reduced by 1.8pp to 13.3%, including 1.8% for sales, 10.8% for management, 4.7% for R & D and 0.6% for finance.
Give full play to the advantages of lithography technology, release high-end production capacity and optimize product structure. The company has been ploughing lithography technology for more than ten years, and has mastered the technology leading edge and first-mover advantage. In 2021, the company's 32.768kHz lithography tuning fork products gradually become the main market supplier, the company continues to expand the production capacity of superior products, the fund-raising project MEMS miniature crystal resonator industrialization project progresses smoothly, SMD K series products expand rapidly, and the high-end market penetration continues to expand. At the same time, the company actively promotes the improvement and process optimization of production line automation, the yield and gross profit margin of lithography products have been improved, and the comprehensive output benefit has been greatly improved.
Grasp the high prosperity of the downstream market, optimize and upgrade the customer structure. The company seizes the opportunities of the Internet of things, smart home, new energy vehicles and other industries to further increase the introduction of high-quality customers. Its thermal T1612 76.8MHz products are certified and licensed by Qualcomm Inc smart phone platform, TCXO is imported into communication head terminal customers, XO products undertake industrial terminal applications, and the company effectively matches the diversified needs of customers with global product layout. Serve the industry leaders and high-quality customers such as ZTE Corporation, Tide, Haikangwei, Dahua, Lenovo, Gree, Midea, move away, graffiti, BOE, Mega Intelligence, FLEX (Flextronics), Foxconn (Foxconn), and the terminal potential is great, and the penetration rate is expected to be further improved in the future.
Profit forecast and investment advice. It is estimated that the EPS of the company from 2022 to 2024 will be 1.82,2.44,3.04 yuan respectively, corresponding to 16 times, 12 times and 9 times of PE, respectively, maintaining the "buy" rating.
Risk tips: the repeated risk of COVID-19 epidemic, the risk that product prices are lower than expected, the risk that the company's production capacity expansion is not as expected, the risk of deterioration of the supply and demand pattern, and so on.