Event: the company released three quarterly reports, with total revenue of 2.492 billion yuan in the first three quarters, yoy+82.45%, net profit of 75.14 million yuan, net profit of 66.76 million yuan after deducting non-return, weighted average net asset income of 3.79%, and diluted earnings per share of 0.16 yuan.
Comments: the company's precision metal one-stop provider, judged that under the improvement of internal and external factors in the 5G era, the performance reached the inflection point, and the performance in the 5G era was flexible, which was continuously recommended for the low valuation target of Apple Inc's industrial chain.
Due to the mass production of new machines and the improvement of capacity utilization, the company's third-quarter revenue was 1.127 billion, and the yoy+139.35%, net profit was 38 million yuan. Yoy+191.8%, we judged that due to the exchange profit and loss in the third quarter (which does not affect the company's real cash flow, financial expenses yoy+42.25%), the company's net profit increased by more than 198% compared with the same period last year. The profitability increased year-on-year, with a gross profit margin of 20.41% quotient 1.25% precinct 1.83% and a net profit rate of 3.36% quotient 1.17%. Inventory yoy+89.51%, indicates the flexibility of the company's performance in the fourth quarter. With consumer electronics as the core, the company continues to expand its product category to medical devices, photovoltaic products, e-cigarettes and other structural components, and its customers continue to expand their products (Apple Inc small to large. Huawei laptop to watch headphones), medium-and long-term logic is smooth.
Metal small pieces to transform large pieces, multi-product lines cut into Apple Inc, at the same time the introduction of Huawei laptop, customer diversification.
The company has bound Apple Inc + Huawei two major consumer electronics leaders. Apple Inc: the company has provided iPad structures such as mute keys and lens rings through Jepp in 12 years, and cut into the supply chain of iPhone stainless steel / aluminum alloy frames in 17 years ("precision forging + CNC" process stainless steel frames), expanding from small pieces of consumer electronics to large ones. At present, it has cut into iPad, iPadPencil, MacBook, iMac and other product lines, and will continue to be promising in the future: 1) in 20 years, Apple Inc will enter the super cycle of communications + ID innovation, and launch a number of new 5G models. 2) cut into the large parts of the iMac case, the value will increase greatly; 3) the company has completed technology research and development, notebook computer shafts (hinges) and other products have entered the stage of mass production, the technical threshold is high and the supply chain position is scarce. Huawei: the company has mastered a complete set of precision metal manufacturing services and supporting technologies to meet the "one-stop" service, and cut into Huawei's notebook supply chain. Huawei is expected to enjoy the high growth of Huawei notebooks, and is expected to expand watch frames, headphones, plastic and other structural parts.
A-share medical equipment is scarce, cut into e-cigarettes to create a new performance growth point. The company is actively stuck in medical, e-cigarette and other areas: 1) Medical: the global medical device industry is expected to reach US $532.8 billion in 2022, stimulating the demand for precision structural devices. The company has cut into the Medtronic PLC supply chain of the second medical device company in the United States for 14 years, and is expected to continue to benefit from high-end customer resources and steady growth in performance. The company established Corson Healthcare for 18 years, continuously improving the core competitiveness of the medical device field, and the medical surgical structure is the product with the highest gross profit margin (maintained at more than 48% in 13-18 years), which is expected to become the next important business growth point.
2) E-cigarettes: with the strengthening of tobacco control efforts and public health awareness in various countries, the global market size of e-cigarettes is expected to reach US $61.4 billion in 2025. The company acquires Yuancheng Electronics to improve precision die-casting technology and actively card e-cigarettes. At present, it has cut into the supply chain of precision metal structures of a well-known e-cigarette brand, and is expected to enjoy the growth of the industry.
Investment suggestion: the company's net profit for 20-22 years is expected to be 1.81,4.02 and 518 million yuan, and the company will be given a 21-year PE=30x, corresponding to the target price of 24.9 yuan per share.
Risk Tip: 5G mobile phone replacement is not as expected, customer expansion is slow, raw materials are scarce