[investment points]
2022Q1 performance achieved steady growth. According to the company's quarterly report for 2022, revenue in the first quarter of 2022 was 489 million yuan, an increase of 34.01 percent over the same period last year, and net profit was 55.5 million yuan, an increase of 27.70 percent over the same period last year. Non-net profit was deducted from 56.82 million yuan, an increase of 36.64 percent over the same period last year.
The company's products cover five major application fields of industrial control, communications, medical electronics, automotive electronics and consumer electronics, providing high-quality, multi-variety, fast and flexible electronic manufacturing services to more than 270 customers in various industries around the world. During the period, the company's revenue from industrial control products, medical electronic products, communications products and automotive electronic products all maintained positive growth.
Profitability remains stable and investment in R & D is increased. 2022Q1's overall gross profit margin was 26.91%, slightly lower 0.96pct than the same period last year and 1.7pct higher than the previous year. 2022Q1's net interest rate was 11.68%, slightly lower 0.35pct than the same period last year and 0.86pct higher than the previous year. In terms of the expense rate during the period, the company's sales expense rate and management expense rate remained basically stable, and the R & D investment increased significantly compared with the same period last year. 2022Q1 invested 23.46 million yuan in R & D, an increase of 53.74% over the same period last year, accounting for 4.79% of revenue.
It is expected that the scale of the EMS market will continue to increase, with strong demand in the medical, automotive and industrial sectors. According to Fortune Business Insights data, the global electronic manufacturing EMS market is about US $476.88 billion in 2021. Due to the strong demand in health care, automotive electronics and industrial applications, the EMS market is expected to reach US $504.22 billion in 2022, an increase of 5.73% over the same period last year. The company is deeply engaged in the field of EMS, accumulating high-quality customers in various application fields, and actively arranging emerging market areas such as big data, 5G, autopilot, new energy and so on, laying the foundation for high-speed development in the future.
[investment advice]
We maintain the estimated revenue of 22.91,29.25 and 3.614 billion yuan respectively from 2022 to 2024, the net profit of 3.06,4.08 and 500 million yuan respectively, the corresponding EPS of 1.90,2.53,3.10 yuan per share, and the pre-corresponding PE of 15,11 and 9 times respectively.
[risk Tip]
The market demand is lower than expected.
It is difficult to alleviate the shortage of materials.
Exchange rate fluctuates violently
