Introduction to this report:
The company's 2022 Q1 performance is in line with 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 holdings” rating and maintain the target price of 20.01 yuan. We maintained the company's 2022-2024 EPS at 0.87/1.05/1.35 yuan, gave it 23 times the 2022 PE valuation level, and maintained the target price of 20.01 yuan.
The 22Q1 performance was in line with expectations, and profitability was further improved. The company's 22Q1 revenue was 1,502 million yuan, an increase of 15.61% over the previous year, the net profit of Guimu was 157 million yuan, an increase of 28.20% over the previous year. After deduction, the net profit of the company was 156 million yuan, an increase of 40.07% over the previous year. The company's gross profit margin for the first quarter was 26.93%, +2.36/+1.18pct year-on-month respectively; net interest rate reached 11.47%, +0.85/+4.43pct year-on-month respectively, and profitability increased month-on-month.
The utilization rate of production capacity has been further improved, and intelligent manufacturing has raised the level of profitability. The company's intelligent transformation has achieved remarkable results, and its per capita revenue has reached 9961,000 yuan in 2021 (+24.4% year-on-year). Production capacity has continued to increase since the company was transformed into a large-scale business. In 2021, production capacity reached 5.83 million square meters, +40.60% over the same period last year. Since the first quarter, its capacity utilization rate has further increased. Among them, the capacity utilization rate of Shenzhen Chongda has reached more than 85%. The company's off-season in the first quarter was not weak. Along with the continuous release of its production capacity and the increase in operating rate, its profitability will grow further.
The product structure continues to be optimized, and the proportion of high value-added products continues to increase. The company's product layout includes a full range of products such as soft boards, hard boards, and IC carriers. In 2021, its products such as automotive boards and 5G high-frequency high-speed boards grew steadily, and HDI for mobile phones was successfully introduced to end customers; in terms of servers, the company has already supplied products to ZTE in batches and introduced them to third tier customers of Xinhua. At the same time, the 5G RF market cultivated by Punnover is growing rapidly, which will continue to provide growth momentum.
Risk warning. Repeated epidemics; trade frictions between China and the US