In 21 years, revenue increased by 96.6% over the same period last year, and net profit from home increased by 53.4% over the same period last year. The company's 21-year revenue is 1.241 billion yuan (YoY + 966%), the net profit is 245 million yuan (YoY + 534%), and the net profit after deducting non-return is 244 million yuan (YoY + 1003%). The high performance growth benefits from: 1) the surge in demand in emerging markets such as 5G, AIoT, car networking and WiFi6, while the domestic substitution process of Crystal oscillator is accelerated. 2) the production capacity of the company's products has been released, and the price of products has increased. Among them, the gross profit margin of SMD K series and SMD thermal T series has increased significantly, and the structure of superimposed products has been optimized. Gross profit margin in 21 years has increased by 18.17pct to 39.38% over the same period last year. 3) each production base has continued to increase the control of costs and operating expenses, and the expense rate has decreased to 13.26% over the same period last year.
The net profit of 1Q22 was 73.65 million yuan, an increase of 93.0% over the same period last year. The company's 1Q22 revenue is 262 million yuan (YoY+4.3%), the net profit is 73.65 million yuan (YoY+ 93.0%), and the non-parent net profit is 48.98 million yuan (YoY+ 35.8%). The investment income (about 18.28 million yuan) and the impairment provision for the loan provision of Shenzhen Penghe (about 14.62 million yuan) have a great impact on the non-recurrent profit and loss of 1Q22. In addition, the company 1Q22 confirmed that the share payment fee was about 6.87 million yuan. 1Q22's operating performance has achieved high year-on-year growth, thanks to: 1) actively deepening cooperation with end customers; 2) product structure optimization, product prices rising over the same period last year, 1Q22 gross profit margin increased by 11.71pct to 42.73% over the same period last year; 3) actively open up new high value-added markets such as automobile and industry.
The company's crystal oscillator sales volume and prices have risen, increasing the product certification of the mainstream platform solution merchants. In 21 years, the company sold 1.127 billion TF series (YoY + 18.1%), revenue 150 million yuan (YoY + 69.3%), SMD series sales 2.24 billion (YoY + 66.1%), revenue 980 million yuan (YoY + 141.8%), of which SMD K series revenue increased by 393.7% compared with the same period last year. Revenue of SMD SMD M series 2016 and below increased by 173.1% compared with the same period last year. Sales of the S series are 69.57 million (YoY + 7.4%), with revenue of 14.68 million yuan (YoY + 13.4%). In the past 21 years, the company has increased the product certification of mainstream platform solution vendors, completed the TSX mini-spec release of 38.4MHz 2016/76.8MHz 1612 on Qualcomm Inc's vehicle platform, expected 2Q22 sample delivery test, and introduced MediaTek wifi 6 40MHz 3225 materials into downstream ICT customers.
Investment suggestion: we are optimistic that the company will seize the opportunity of strong crystal oscillator demand and domestic substitution, give full play to the advantages of semiconductor lithography technology, further enhance the global market share and expand high value-added markets such as automobile and industry. We estimate that the company's operating income in 22-24 year-on-year will increase by 42.9% PE 36.6% to 17.73Accord 24.223.055 billion yuan, and the home net profit will increase by 53.9%, 30.8%, 25.1% to 3.77200,000,000,000 yuan. With reference to the 22-year comparable average of 21.73 times the company's Wind consensus forecast, give the company 21-22 times expected PE in 22 years. The target price is 39.80-41.69 yuan, maintaining the buy rating.
Risk tips: downstream demand is not as expected, new product development is not as expected, and competition in the crystal oscillator industry is intensified.