The company's Toyama plant will release new production capacity soon, and HDI products will continue to be optimized, maintaining the "buy" rating company to release the 2020 results of KuaiBao, with an operating income of 2.34 billion yuan (YoY+11.5%) and a net profit of 160 million yuan (YoY+9.2%). At the same time, the company issued a 2021Q1 performance forecast, return to the mother net profit of 0.33-39 million yuan (YoY+70~100%). We downgrade our profit forecast for 2020-2022. We estimate that the net profit of 2020Universe 2021 will be 1.6 billion yuan (the original value is 2.3 million) and the EPS will be 0.42 million (0.72 yuan). The current stock price corresponds to 37.1pm, 29.1 and 20.1 times PE. Considering the imminent release of new capacity at the company's Toyama plant, the HDI product mix continues to improve, maintaining a "buy" rating.
Industrial control security, car orders pull Q1 full, Huizhou, Yuansheng factory technical transformation to achieve capacity expansion 2021Q1 company in the case of no new production expansion, through technological transformation to optimize the production capacity of Huizhou plant HDI and Yuansheng electronic FPC, to achieve high quarterly income growth. 2021Q1 company orders continue to boom, industrial control security, car BMS orders to achieve a substantial increase over the same period last year, the overall visibility of the company's HDI and FPC product orders in 1-2 months. As the first batch of established domestic manufacturers to invest in the construction of HDI production capacity, the company actively accepts consumer electronics HDI orders. Under the first-mover advantage of a number of consumer electronics ODM manufacturers, HDI products continue to optimize product structure, 2020Q4 HDI second-order products have accounted for more than 60% of the income.
Zhuhai Fushan factory part of the process trial production, HDI, high multi-tier PCB product structure optimization company has entered a new round of expansion cycle, Zhuhai Fushan factory is expected to inject fresh blood. The company has no new plant during 2014-2017, and plans to build Zhuhai Fushan high-density printed circuit board construction project in 2020, with a total investment of 1.64 billion yuan, of which the proposed investment amount is 1.2 billion yuan, mainly producing high-laminate and high-density interconnection board (HDI) products. Fushan factory has entered part of the process trial production stage and is expected to be put into mass production in May 2021, contributing to the increment of output value from 2021 to 2022. With the fierce competition between middle and low-end PCB, the company's expansion of high-level multi-tier PCB products is expected to get rid of the deterioration of competition, take the initiative to move forward to high-level HDI, high-level multi-layer PCB products, and achieve overall product structure optimization.
Risk tips: soft board and IC board customer introduction is not as expected, the company's Zhuhai plant production is not as expected, HDI demand is lower than expected, PCB industry competition intensifies
