Event: the company announced its performance, KuaiBao, with an income of 2.517 billion yuan in 2020, an increase of 11.68% over the same period last year, a net profit of 383 million yuan, an increase of 13.57% over the same period last year, and a non-net profit of 319 million yuan, an increase of 12.26% over the same period last year.
Revenue in a single quarter reached another record high, and the industry continued to maintain a high boom: as a leading enterprise in aluminum electrolysis, the company achieved 770 million in revenue in the fourth quarter, an increase of 15% over Q3 and 22% over the same period last year, when the company had no obvious new production capacity in 2020, indicating that the company's farming rate is high. From the profit side, Q4 made a profit of 116 million yuan in a single quarter, an increase of 27% compared with Q3, and a net interest rate of 15% in a single quarter, further improving compared with Q3.
Looking forward to 2021, the company will soon put into production in the early stage of debt raising, mainly expanding photovoltaic inverters, 5G base station power supply, OBC car chargers, automotive multimedia and other markets, which is expected to benefit from the general trend of the new energy industry and drive the company's performance growth to further upward.
The rising trend of charging power has been established, and the cancellation of the standard charging head does not hinder the economic trend: the power consumption of 5G mobile phones increases the superimposed consumer demand for fast charging, which increases the power of mobile phone charging heads. In 2019, flagship models are generally dominated by 30-40W fast charging. At present, the flagship model has raised the power to 55W and 65W, driving the volume and price of supporting capacitors to rise. According to the disassembly data, the 65W charge head ASP is more than 50% higher than the 40W. The company is the core supplier of capacitors for 3C power products in China and is expected to fully benefit from the upgrading trend of the industry. XIAOMI recently followed Apple Inc to launch the cancellation of the charging head inbox, which has a slight impact on the short-term mood, but users have a rigid demand for fast charging heads and a strong demand for upgrading, even if other mobile phone brands follow up further, considering that many independent third-party brands are also company customers, which does not affect the industry's magnificent demeanor.
Vigorously expand automotive photovoltaic and other areas, more blossoms to drive performance growth up. The company's industrial products accounted for 16% in 2019, and it is expected to increase its production capacity after the Spring Festival, mainly in the automotive, industrial and other high-end markets, which is expected to drive income growth up further. At the same time, the company continues to improve the self-sufficiency rate of core raw materials, and the profitability center is steadily rising. It has been gradually verified since 2019, and there is still room for further improvement.
Investment suggestion: in order to benefit from the fast-charging high-power trend, the company will accelerate the expansion of the automobile, photovoltaic and other markets, and its performance is expected to further accelerate. We expect the company's annual net profit in 2020-21-22 to be RMB 383pm (the previous forecast is RMB 406pm in 2020-21-22), and the EPS is RMB 1.22122m. The growth rate was 13.5%, 26.6% and 24.1%, with a "buy" rating.
Risk tips: low expectations for capacity release, low expectations for high-end market expansion, and a sharp decline in mobile phone shipments.
