Event: on the evening of March 24, 2022, Shengyi Electronics released its 2021 annual report. In 2021, the company realized operating income of 3.647 billion yuan, yoy+0.38%; operating profit of 249 million yuan, yoy-49.53%; return net profit of 264 million yuan, yoy-39.83%; deduction of non-return net profit of 228 million yuan, yoy-45.58%.
Comments: 21 performance under pressure, Q4 inflection point has arrived, optimistic about server + automotive business growth product structure optimization. In 2021, the operating income is 3.647 billion yuan, the net profit of yoy+0.38%; is 264 million yuan, and the net profit of yoy-39.83%; is 228 million yuan, yoy-45.58%. Q4 realized revenue of 980 million yuan, yoy+19.14%,qoq+0.21%; net profit of 81.72 million yuan, yoy+76.51%,qoq+52.41%; deduction of non-home net profit of 78.41 million yuan, yoy+56.14%,qoq+71.05%, gross profit of 21.81% Magi yoyhammer 1.27pctPower4.53pct, net profit of 8.34% YoyLiao 2.71pctMagneQoQQ 2.86pctMagneQ4 profitability improved year on year. In 21 years, the company's sales volume of PCB products was 1.1736 million square meters, and yoy+44.67%,ASP was 2994.32 yuan / square meters. the decline in the unit price of yoy-31.81%, products was mainly affected by product structure adjustment (increased orders for servers and automotive electronics). In 2021, the gross profit margin of the company is 20.29% and the gross profit margin of the PCB is 17.53% and 8.49pct. The decline in gross profit margin for the whole year is mainly affected by the rising cost of raw materials, the suspension of production in Wanjiang branch and the high fixed cost of Ji'an Shengyi subsidiary in the first year. The 21-year sales / management / R & D / financial expense rates of the company are 2.1%, 4%, 5.2%, 0.5% yoymilk, 0.5, 0.5, 0.5, 0.8, pct, and 0.9 pct, respectively. The R & D investment continues to increase. In 2021, the company's R & D investment is 190 million yuan, and the proportion of yoy+21.37%, R & D investment in business income is 5.2% yoymilk 0.9pct. The company continues to increase the in-depth research and layout of core technologies. In 2021, there are 43 new invention patents and 16 projects under development.
From the perspective of downstream application demand, overseas 5G construction space is large, and car + server continues to grow downstream application structure optimization: 1) Communications: domestic 5G stable construction (600000 new 5G base stations are planned in 22 years), medium and long-term overseas 5G construction space (GSMA expects global operators to spend more than US $500 billion on 5G construction capex in 22-25) + high market share + customers with mainstream communication equipment (ZTE, Huawei) 2) servers: the increase in idc capital expenditure (Dell'Oro expects the global idc capex to be US $240 billion in 2022) + the construction of the domestic "calculation of the East and the West" project + the upgrading of the server platform (upgrading the x86 server to the Whitley platform) drives the PCB upgrade 3) Automotive: the deepening of automotive electronization has led to the improvement of bicycle PCB usage + technical requirements (bicycle ASP increased from 500RMB to 1200003000 RMB), the company laid out in advance the rapid improvement of PCB business for automotive electronics, and the proportion of automobile sales increased from 1% to 8% in 21 years, and the volume of automotive PCB business was ~ 300 million yuan.
From the perspective of capacity expansion dimension, capacity expansion is orderly. The first phase of 21H1 Ji'an Shengyi (Phase I) was put into production, 21Q3 reached production, with an additional monthly capacity of 37000 square meters; the second phase of 21Q3 Ji'an Shengyi (Phase I) began construction, 22H1 production is expected to be put into production, and the monthly production capacity is expected to be 15000 square meters. IPO fundraising project Dongcheng (Phase IV) completed capping at the end of 21 years, and 22Q4 trial production is expected; IPO fundraising project Ji'an Shengyi II project will be officially built at the end of 21, and 23Q4 trial production is expected.
Investment suggestion: taking into account the factors such as the decrease of ASP in the adjustment of base station scheme and the increase in the cost of fixed assets, the 23-year net profit of the company will be reduced from RMB 548,000,000 to RMB 378pm, maintaining the "buy rating".
Risk tips: technological innovation is less than expected, downstream demand is lower than expected, raw material costs continue to rise, and the average unit price of products is lower than expected.