Event description
The company released its 2020 results, KuaiBao. During the reporting period, the company realized operating income of 3.634 billion yuan, an increase of 17.35% over the same period last year; the total profit realized was 497 million yuan, down 1.85% from the same period last year; and the net profit attributed to the owner of the parent company was 439 million yuan, down 0.44% from the same period last year.
Event comment
New production capacity has been gradually released and operating income has increased steadily. Affected by the global epidemic in 2020, the uncertainty of the development of the communications and electronics industry has increased, and the company has actively adjusted its product structure to achieve steady growth in business income. However, due to the increase in new production capacity (Ji'an subsidiary Phase I project), the company's costs have increased, resulting in a slight decline in profits this year compared with the same period last year. On the whole, the overall performance of the company still maintains a trend of growth.
Fund-raising is in place, and production capacity expansion has entered an accelerated period. The company uses its own funds and newly raised funds mainly for the expansion and upgrading of high-speed and high-density printed circuit boards in the 5G application field of Dongcheng Factory (Phase IV) (1.998 billion yuan). Jian factory (phase II) multi-layer printed circuit board construction project (1.279 billion yuan). After the implementation of the fund-raising project (before the investment project), the company's 5G application field of high-speed and high-density printed circuit boards increased production capacity of 348000 square meters, multi-layer printed circuit boards increased production capacity of 535300 square meters, compared with 2020 (the total production capacity of all kinds of printed circuit boards 900000 square meters) is expected to double.
The global market share of the company's products has increased steadily, and the price has maintained an upward trend. Through years of technological innovation and market development, the company's market competitiveness has been continuously enhanced, and the market share of all kinds of printed circuit board products produced by the company has increased steadily, with a production capacity of 706000 square meters in 2017, a global share of 0.27%, 803200 square meters in 2018, a global share of 0.31%, 808400 square meters in 2019, and a global share of 0.44%. The annual production capacity is close to 900000 square meters in 2020. The price also increased from 2690 yuan / square meter in 2018 and 4500 yuan / square meter in 2019 to 4827 yuan / square meter in the first half of 2020.
Investment suggestion
The company will increase the investment in new production capacity, and the scale of production capacity is expected to double in the future. The company will fully benefit from the rapid development of 5G and new energy industry. It is estimated that the EPS of the company in 2020 will be 0.53,0.78 and 0.90 respectively, corresponding to the closing price of 15.92 yuan on March 18 and the PE of 30\ 20\ 18 in 2020 and 2022 respectively, which will be rated as "overweight".
There are risks: (1) the risk of high customer concentration; (2) the operational risk caused by the trade friction between China and the United States.