Items:
The company recently released its 2019 annual report, with operating income of 16.917 billion yuan during the reporting period, an increase of 8.09% over the same period last year, and a net profit of 622 million yuan, an increase of 8.59% over the same period last year. Basic earnings per share was 0.30 yuan per share, an increase of 11.11%.
The company's profit distribution plan for 2019 is to distribute a cash dividend of 1.48 yuan (including tax) for every 10 shares, with a dividend amount of 312 million yuan, accounting for 50.10% of the net profit returned to the parent. There will be no share offering and capital accumulation fund to increase share capital in 2019.
Comments:
All indicators are stable and rising throughout the year.
In 2019, Taiji achieved an operating income of 16.917 billion yuan, an increase of 8.09% over the same period last year, and a net profit of 622 million yuan attributed to the parent company, an increase of 8.59% over the same period last year. In terms of business, the revenue of engineering and technical services, semiconductors and photovoltaic power generation in the first three major businesses in 2019 was 120.93, 43.07 and 405 million yuan respectively, up 16.36%, 4.40% and 27.29% respectively over the same period last year.
From a quarterly point of view, Q1-Q4 's revenue was 38.08,45.63,40.98 and 4.449 billion yuan respectively, up 7.48%, 10.19%, 15.66% and 0.52% respectively over the same period last year. The net profit of homecoming was 0.96,1.91,1.66 and 170 million yuan respectively, up 20.52%, 52.80%, 1.90% and-17.28% respectively.
The comprehensive gross profit margin and the rate of period expenses decreased slightly.
In 2019, the company achieved a comprehensive gross profit margin of 12.79%, a decrease of 0.46 percentage points over the same period last year. Among them, the gross profit margins of the top three major businesses, such as engineering and technical services, semiconductors and photovoltaic power generation, decreased by 0.98,-0.88 and 1.51 percentage points to 10.41%, 15.50% and 54.95%, respectively.
The company's expense rate during the reporting period was 7.47%, a decrease of 0.30 percentage points compared with the same period last year. During the reporting period, sales, management, finance and R & D expenses increased by-32.31% 1.45% 10.87% 3.86% respectively compared with the same period last year. The significant reduction in sales expenses is mainly due to the reduction of the merger scope after the sale of Jiangsu Taiji shares during the reporting period.
The operating cash flow has improved significantly, and the cash-to-cash ratio and accounts receivable both show that the operating quality has improved. In 2019, the net cash flow generated by the company's operating activities reached 1.681 billion yuan, an increase of 30.27% over the same period last year, mainly due to the expansion of the subsidiary's National Day science and technology business and the increase in cash received from the sale of goods and services compared with the same period last year.
The ratio of receipts and cash in 2019 was 95.35%, 1.46% lower than that of 18 years; the absolute amount of accounts receivable decreased by about 110 million yuan compared with the previous year in the case of income growth, which also showed the improvement of the company's operating quality.
The overall sale of materials business, industrial structure is more optimized
In 2019, in the face of the challenges of Sino-US trade frictions and the difficulties of the real economy, the company achieved reverse growth in the crisis, not only achieving all-round growth in all sectors, but also maintaining rapid growth on a high base.
During the reporting period, Taiji headquarters strengthened group management and control in system construction, information construction, production safety construction and cultural construction by continuously promoting industrial transformation, so as to lay a good foundation for the company's high-quality development and set the right direction. In 2019, the overall sale of materials business, Taiji main business is more prominent, further optimize the industrial structure. In the first half of 2019, the company contributed 200 million yuan (9.48%) to participate in the establishment of tin microchips to engage in the IDM project, and the newly established company will be involved in semiconductor research and development, manufacturing, sales and technical services to further promote the implementation of the company's strategy of "highlighting the main business and focusing on industry".
In-depth innovation of semiconductor business, service level to a higher level
During the reporting period, through the comprehensive implementation of in-depth innovation, Haitai Semiconductor still achieved year-on-year growth in revenue in US dollars and RMB. In terms of closed testing, 18 key flip chip bonding equipment (FCB) production lines have been put into production in 2019, accounting for more than 90% of the total monthly output; in terms of modules, the product category has been upgraded from 20 nm to 10 nm in 2019, and the product capacity has increased from the highest 32GB to 64GB capacity. With the synchronization of products, Haitai began to introduce new product information standards in 2019, realizing the standardization of products, engineering, equipment, trade materials and equipment throughout the company.
Its National Day holiday technology business performance has reached a new high, fighting for the market to accumulate stamina. In 2019, while major semiconductor projects are coming to an end, National Day Science and Technology actively scrambles for orders and continues to develop new projects under the guidance of the strategy of "three modernizations" (small and medium-sized, low-profit and diversified projects). In terms of design contracts, it won the bid for a number of major design projects, such as the Dalian Panasonic Automobile Energy Project, with a total contract value of more than 100 million yuan, and the overall project volume and quality of the company continued to improve steadily.
Reiterate the "Buy" rating
We estimate that from 2020 to 2022, the company's operating income will be 19.47 billion yuan, 21.56 billion yuan and 23.44 billion yuan respectively, an increase of 15.1%, 10.7% and 8.7% respectively over the same period last year; and the net profit of returning home will be 693 million yuan, 792 million yuan and 892 million yuan respectively, up 11.4%, 14.3% and 12.6% respectively over the same period last year. It is estimated that the EPS from 2020 to 2022 will be 0.33,0.38,0.42 yuan per share respectively, and the corresponding PE will be 31max 27max 24x, respectively. The company's engineering business relies on the three pillars of high-tech electronic engineering, logistics warehousing engineering and photovoltaic power station project to maintain rapid income growth in the next three years, while the company's semiconductor closed test business orders are stable and maintain steady growth. We expect the company's operating revenue as a whole to maintain a certain growth in the next three years, and the profit and income after deduction can also maintain simultaneous and steady growth. Maintain a "buy" rating.
Risk hint
The risk of declining market demand; the risk of changes in the international economic and political situation; the risk of domestic macro policy changes; the risk of a sharp rise in raw material prices.