Event: the company released three quarterly results for 2022: revenue in the first three quarters was 999 million yuan (YoY + 25.46%), net profit was 123 million yuan (YoY 22.79%), and non-net profit was 105 million yuan (YoY 19.06%).
In the third quarter, the income was 365 million yuan (YoY 21.89%), the net profit was 44.7182 million yuan (YoY3.55%), and the non-return net profit was 39.074 million yuan (YoY + 17.55%).
Steady growth in performance, waiting for capacity release
Revenue and profits grew steadily in the first three quarters, the business of electronic ceramic shells for communication devices continued to infiltrate downstream customers, and export competitiveness is expected to increase. The volume of consumer electronic ceramic shells increased by 132.6% in the first half of the year, and the high growth trend in the third quarter is expected to continue.
From a quarterly point of view, Q3 single-quarter return net profit growth is less than income growth, mainly due to non-operating income decreased from 9.944 million yuan to 5.644 million yuan in the same period last year, deducting non-net profit robust. The production task of the company is full, and the capacity utilization rate has maintained a high level. The company is stepping up the construction of the consumer electronic ceramic product production line project, which is expected to reach an annual production capacity of 4.405 billion consumer electronic ceramic products after completion.
A slight drop in gross profit margin and proper cost control
In the first three quarters, gross profit margin decreased 1.39pct compared with the same period last year, mainly due to the increase in raw material-labor costs and the adjustment of transportation costs related to performance contracts from sales expenses to operating costs. The cost control of the company is good, the sales / management / financial expense rate decreases 0.32/0.19/0.86pct respectively, only the R & D expense rate increases 0.67pct.
The third generation semiconductor business is expected to open up the room for growth.
The company intends to purchase 13 gallium nitride communication base station RF chip business assets and liabilities, 73% equity of Bowei company, and 94.6029% equity of Guolian Wanzhong, so as to realize the IDM layout of GaN communication RF chip and SiC power module. GaN RF chips of Bowei Company are mainly used in 5G base stations and leading domestic communication equipment enterprises. Guolian Wanzhong SiC power module includes 650V, 1200V and 1700V series products, mainly used in new energy vehicles, industrial power supplies, new energy inverters and other fields, the main customers are BYD and so on. The third-generation semiconductor business is expected to become the company's long-term growth point.
Investment suggestion: as the leader of domestic precision electronic ceramic shell, backed by CLP 13, the company is expected to fully enjoy the downstream high prosperity transmission and domestic substitution tide. If the asset injection is not taken into account, we predict that the 22-24 return net profit of the company will be 156 million yuan, 193 million yuan and 232 million yuan, respectively, and the corresponding PE will be 93 times that of 112max, maintaining the "overweight" rating.
Risk hints: risks related to international trade frictions, risks aggravated by market competition, risks of rising prices of raw materials, risks of technological upgrading
