1H revenue and profit double growth, maintaining the dominant position in the intelligent manufacturing segment, 1H22 achieved revenue of 2.637 billion yuan, an increase of 2.66% over the same period last year, and net profit of 71 million yuan, an increase of 5.29% over the same period last year. Benefiting from the maintenance of the dominant position in intelligent manufacturing business segments, the company's 1H22 has achieved both revenue and profit growth. The company is the leader in the military PCB field. We are optimistic about the long-term development of the company and maintain the previous profit forecast. It is estimated that the net profit of the company in 2021-2023 will be 2.45, 315, 390 million respectively. According to the consensus expectation of Wind, the average PE of the comparable company will be 49.90x in 2022. Taking into account the company's leading position in the military PCB field and the further expansion of the company's PCB capacity in the future, the company will be given PE70x in 2022, corresponding to the target price of 25.10 yuan per share (the previous value is 25.14 yuan per share), maintaining a "buy" rating.
Smart manufacturing is booming, and the company continues to maintain a dominant position in sub-sections. revenue from 1H22's intelligent manufacturing business increased by 10.01% year-on-year, making it the sector with the highest year-on-year revenue growth. PCB business in the repeated impact of the epidemic and declining demand under the dual pressure, market orders continued to grow compared with the same period last year, further consolidating the company's position as the largest supplier of PCB business in special areas.
According to the Prismark forecast, the compound growth rate of the PCB industry is expected to be 5.8% from 2020 to 2025, and the domestic PCB industry will maintain a compound growth rate of 5.6%. As a domestic military PCB leader, the company is expected to share the growth dividend of the industry. The time-frequency crystal oscillator business has overcome the adverse impact of the decline in orders from major customers in the first half of the year, the industry has ushered in the opportunity of localization of devices, the demand for constant temperature crystal oscillator has increased significantly, and the company's crystal oscillator business will continue to maintain a leading position in the market.
The company is actively developing 5G lightweight core network, small base station and other products to expand the application of solutions in 5G + industry. In terms of private network communications, the company won the bid for the off-site law enforcement system project of Xinxiang Transportation Bureau, and made a new breakthrough in the digital transformation market of the transportation industry. In addition, in terms of smart applications, cloud infrastructure business building benchmarking key projects, winning Huawei prefabricated modular data center project (FDC), realizing HVAC + computer room project implementation service capabilities, enriching the capabilities of the business department in data center categories, and playing an exemplary role in expanding other users' data center projects. We believe that through winning the bid, the company will make new breakthroughs in the market, build a deep industry capacity, play a positive role in the follow-up expansion of the commercial market, and is expected to expand new growth points of business.
Maintain a "buy" rating
The company is the leader in the military PCB field. We are optimistic about the long-term development of the company and maintain the previous profit forecast. It is estimated that the homing net profit forecast for 2022-2024 will be 2.45 million, 315 million, and 390 million respectively. According to the consensus expectation of Wind, the average PE of the comparable company will be 49.90x in 2022. Taking into account the company's leading position in the military PCB field and the further expansion of the company's PCB production capacity in the future, the company will be given a PE70x in 2022 with a target price of 25.10 yuan per share (the previous value is 25.14 yuan per share) and maintain a "buy" rating.
Risk tips: PCB business expansion is not as expected; the epidemic affects product delivery; downstream demand is lower than expected.