Event: when China porcelain Electronics released its annual report for 22 years, 22H1's income was 633 million yuan, + 27.62% compared with the same period last year; the net profit was 78 million yuan, + 37.45%; the net profit was 66 million yuan, + 19.97%; and the gross profit was 28.14%, year-on-year-1.22pcts. 22Q2 income 341 million yuan, year-on-year + 24.92%; return net profit 42 million yuan, year-on-year + 48.79%; deduction of non-return net profit 35 million yuan, year-on-year + 22.87%; gross profit 27.28%, year-on-year-1.46pcts. 22H1 company inventory 311 million yuan (year-on-year + 31.07%), sales expenses 2 million yuan (year-on-year-33.42%), management expenses 22 million yuan (year-on-year + 17.76%), research and development expenses 85 million yuan (year-on-year + 35.04%), financial expenses-6 million yuan (3 million yuan less than the same period last year).
Consumer electronics business is growing by leaps and bounds. By product, 22H1's electronic ceramic shell income for communication devices is 471 million yuan (year-on-year + 25.22%), gross profit margin is 27.47% (year-on-3.77pcts); consumer electronic ceramic shell and substrate income is 95 million yuan (year-on-year + 132.60%), gross profit margin is 31.84% (year-on-year + 1.36pcts). By region, 22H1 has domestic income of 508 million yuan (year-on-year + 24.04%), gross profit margin of 28.12% (year-on-year-0.99pcts), overseas income of 126 million yuan (year-on-year + 44.48%) and gross profit margin of 28.25% (year-2.32pcts).
The merger and acquisition plan will be accelerated to build a first-class semiconductor technology enterprise. The company adjusts its merger and acquisition plan to issue 83.1738 million shares at a price of 46.06 yuan per share, raising about 3.831 billion yuan to acquire 73% equity in Bowei, gallium nitride base station RF chip business assets and liabilities, and Guolian Wanzhong 94.6% equity. At the same time, the matching fund raised by the non-public offering of shares by way of inquiry shall not exceed 2.5 billion yuan. After paying the related costs of the reorganization, it is proposed to be used for the target company's "gan Microwave products Precision Manufacturing production Line Construction Project", "Communication Power Amplifier and Microwave IC R & D Center Construction Project", "third Generation Semiconductor Technology and closed Test platform Construction Project", "Silicon Carbide High Voltage Power Module key Technology Research and Development Project" and supplementary liquidity.
The IPO fund-raising project continues to be built. The progress of the construction project of the production line of consumer electronic ceramic products has reached 41.83%. After the completion of the project, the company will form an annual production capacity of 4.405 billion pieces of consumer electronic ceramic products; the progress of the construction project of the R & D center of electronic ceramic products will reach 6.42%. The construction of the R & D center will further enhance the company's technical R & D strength in the fields related to electronic ceramic raw materials and electronic ceramic products.
Profit forecast. Excluding acquisitions and consolidation, we expect the company's 22-24 return net profit of 170 million yuan, 242 million yuan and 339 million yuan, and EPS of 0.81,1.16,1.62 yuan. We believe that with the advance of mergers and acquisitions of gallium nitride and other chip assets, and after the statement is expected to significantly increase the company's profits, with reference to the valuation of comparable companies, we give the company a certain valuation premium, giving the company a 23-year PE 90-100x, corresponding to a reasonable value range of 104.40-116.00 yuan, given a "better than the market" rating.
Risk hint. Asset mergers and acquisitions are lower than expected, and the release of production capacity of fund-raising projects is lower than expected.
