The performance is growing against the trend. According to the semi-annual report released by the company, H1 achieved an operating income of 3.038 billion yuan in 2022, an increase of 11.90% over the same period last year. The net profit reached 314 million yuan, an increase of 27.81% over the same period last year, and the non-return net profit was 319 million yuan, an increase of 39.75% over the same period last year, mainly due to the gradual release of the company's production capacity and steady growth in the first half of the year against the backdrop of sluggish demand in the industry. the performance in the second half of the year is expected to continue the growth trend in the first half of the year.
The upgrading of product structure has pushed up the level of gross profit margin, and investment in research and development has continued to increase. In 2022, H1's gross profit margin was 25.98%, an increase of 1.14pct over the same period last year. The company continues to promote the optimization and upgrading of product structure, driving the continuous expansion of high-end PCB products, increasing the added value of products, and then driving up the level of gross profit margin. From the expense point of view, the expense rate of H1 company in 2022 was 10.73%, which was lower than that of the same period last year. Specifically, the financial expenses were-24 million yuan, a decrease of 61 million yuan over the same period last year, mainly due to the impact of exchange earnings; the management expenses were 134 million yuan, a decrease of 8.89% over the same period last year. The R & D cost reached 156 million yuan, an increase of 31.23% over the same period last year. The company continues to increase its R & D investment in 5G high-frequency high-speed circuit boards, vehicle electronic circuit boards and other fields.
The factory has a clear division of labor and orderly expansion of production capacity. Shenzhen Chongda mainly produces high-end multilayer products such as 5G communications, supercomputers and servers; Jiangmen Chongda No.1 Factory focuses on developing 4-8 layer multilayer plates such as optoelectronics, automobiles, computers, etc. Jiangmen Chongda No.2 Factory mainly produces high-end PCB products such as high-density interconnection board (HDI), soft-hard plywood, sheet, etc. Dalian Chongda mainly produces multi-variety and small batch PCB products with 2-6 layers, and Dalian Chongda Phase II is under orderly construction. Dalian Electronics mainly produces single-sided and double-sided PCB products; Punovac mainly produces IC carrier board and embedded device series packaging carrier board products; Zhuhai Chongda Phase I mainly produces optoelectronic, automotive, computer and other PCB products, and the current production capacity is climbing; Zhuhai Chongda Phase II is mainly located in high-end plate products such as high multilayer plates and HDI boards, focusing on communications, servers, smartphones, consumer electronics and other fields, and is currently under construction. The company has a clear division of labor, which is conducive to management, but also improves production efficiency, and capacity expansion is progressing smoothly.
The production capacity of high-end products has been gradually released. The rapid development of the semiconductor industry has driven up the demand for IC board. In the first half of 2022, the company's IC board revenue reached 233 million yuan, accounting for 7.68% of revenue. The gross profit margin of IC board can reach 38.21%, which is significantly higher than that of ordinary PCB products. The gradual release of the company's high-end product capacity will further enhance its high-end process capacity. At the same time, improve the company's overall profitability and competitiveness.
[investment advice]
The company focuses on the design, research and development, production and sales of printed circuit boards, which can meet the delivery needs of different products of customers at all levels. The company's main product types include high multilayer plates, HDI plates, high-frequency high-speed plates, thick copper plates, backplates, soft and hard composite plates, buried panels, three-dimensional plates, aluminum substrates, FPC, IC carrier plates, etc., the company's products are widely used in 5G communications, servers, consumer electronics, industrial control, medical equipment, security electronics and aerospace and other fields. According to the outlook of the company's industry and the performance in the first half of the year, we maintain our revenue forecast. It is estimated that the company's operating income in 2022, 2023, and 2024 will be 73.11 and 85.28 billion, respectively. The estimated net profit of the company will be 8.10, 9.98, and 1.277 billion, respectively, and the EPS will be 0.91, 1.1210, 1.36, and the corresponding PE will be 14-12-10, respectively, maintaining the "overweight" rating.
[risk Tip]
The recurrent impact of the epidemic
Downstream demand is lower than expected
The risk of rising prices of raw materials.