Double growth of revenue and profit to create new momentum for development
The company's annual revenue in 2021 was 6.553 billion, an increase of 4.09% over the same period last year; the net profit returned to the mother was 142 million, an increase of 47.04% over the same period last year, achieving double growth in revenue and profit; as the company prepared to reduce its net profit by 119 million yuan in assets impairment, the net profit of Q4 in 21 years was negative. In 2022, Q1's operating income increased by 2.75% over the same period last year, and its net profit increased by 3.81% over the same period last year. Taking into account the potential of the company's long-term development, we keep the performance unchanged for 22-23 years. It is estimated that the company's net return profit in 2022-2024 will be 2.45 × 315-390 million. According to the consensus forecast of Wind, the average PE of the comparable company in 2022 will be 50x. Taking into account the expected injection of assets and the improvement of profitability, the company will be given a 2022 PE 70x with a target price of 25.14 yuan per share (previous value 23.31 yuan per share) Upgrade to "buy" rating.
Intelligent manufacturing high prosperity, the secondary growth curve is expected to open
The revenue of the intelligent manufacturing business in the past 21 years increased by 20.39% compared with the same period last year, enhancing the overall profitability of the company. Defense information construction drives the expansion of military PCB demand, and the company, as a domestic military PCB leader, is expected to share the industry dividend; the maintenance of the dominant position of PCB industry segments, coupled with the proposed construction of the second phase of the Zhuhai Communications Industry Park project to expand PCB production capacity, will achieve sustained growth of PCB business. Benefiting from the construction of 5G and the localization of devices, the demand for constant temperature crystal oscillator has increased significantly, while in the bidding and collection of core components for the construction of 5G network carried out by Huawei, ZTE and other communication equipment manufacturers, the company has gained 70% share of the constant temperature crystal oscillator market, maintaining a leading position in the market segment. With the high prosperity of intelligent manufacturing, the company maintains a dominant position in the industry and seeks breakthroughs in special areas, which is expected to open the secondary growth curve.
Differentiate 5G competitive advantage, build the best practice of digital enablement in 21 years, the company's R & D investment increased by 14.74% compared with the same period last year, and the company mainly invested in the development of 5G industry. 5G differentiated competitive advantage has been gradually built: taking the "end-network-cloud" system-wide solution as a starting point, integrating the advantages of original communication services, and providing users with one-stop solutions. Taking the 5G+PCB workshop application practice of Zhuhai PCB Intelligent Factory as the benchmark, the company is the first to land the 5G end-to-end scene solution, and the follow-up will gradually form the business model of "first vertical deep ploughing, then horizontal development" in the field of dedicated network intelligent application. We believe that the company closely follows the trend of the digital economy, a wide range of 5G industry applications, related business sector revenue will usher in rapid growth.
Give a "buy" rating
Taking into account the potential of the company's long-term development, we keep the performance unchanged for 22-23 years. It is estimated that the company's net return profit in 2022-2024 will be 2.45 × 315-390 million. According to the consensus forecast of Wind, the average PE of the comparable company in 2022 will be 50x. Taking into account the expected injection of assets and the improvement of profitability, the company will be given a 2022 PE 70x with a target price of 25.14 yuan per share (previous value 23.31 yuan per share) Upgrade to "buy" rating.
Risk hint: 5G application is not as expected; defense information development is not as expected.