Event Overview
The company released its annual report in 2020, realizing an income of 1.677 billion yuan / yoy+33.37%, net profit of 265 million yuan / yoy+50.25%; plans to pay a cash dividend of 1.85 yuan (including tax) to all shareholders for every 10 shares.
Analysis and judgment:
The income is slightly higher than expected, and the return net profit is slightly lower than expected. 1) the main reason for the rapid growth of the company's revenue scale is the further expansion of the demand for automatic testing equipment products of the company in 2020, the increase in the scale of Oliton's merger and sales business, the overall gross profit margin of 48.05% increased by 1.5pct over the previous year, the net profit rate increased by 1.77pct, and the overall expense rate increased, among which the management expenses increased 0.44pct and the R & D expense rate increased 0.6pct. We judge that it is closely related to the great changes in the company's business structure after the merger and acquisition of Oliton. 2) according to the single-quarter data, the company Q4 achieved a revenue of 486 million yuan / yoy+84.09%, and a net profit of 3808 million yuan / yoy+641.53%, which continued the high growth since the third quarter, with a gross profit margin of 47.93% and a net profit margin of 7.84%. The company's net interest rate fluctuates greatly from quarter to quarter, and we judge that it is directly related to the product structure recognized by revenue, and the comparability between single quarters is not strong.
The company's panel testing equipment has significant advantages, and the product line has been extended from testing to assembly in the merger and acquisition of Oliton. 1) the company has obvious competitive advantage in the field of flat panel display testing equipment. In the medium to long term, with the continuous transfer of panel production capacity to the mainland in recent years, it has brought huge opportunities to domestic panel equipment enterprises. At the same time, superimposed OLED, Mini/Micro LED and other technologies have become increasingly mature, equipment upgrading is accelerating, leaving the company a huge opportunity. 2) after the acquisition of Oliton, the company extended its product line to Apple, entered the field of intelligent manufacturing devices for wearable products, and enriched the company's product structure. after the consolidation began in July, the income of the assembly equipment was 210 million yuan, with a gross profit margin of 63.04%. At present, the penetration rate of wearable electronic products is still low, there is broad room for growth in the future, and Apple's products are highly competitive. We believe that the company will become stronger and bigger in this area.
Semiconductor testing equipment has gradually entered the harvest period and is expected to become a new growth point for the company. The company's semiconductor test equipment successfully passed the verification of important customers, began to obtain mass production orders, and set up two subsidiaries in Singapore and South Korea to strengthen the company's research and development in the field of semiconductor equipment. We believe that the company is an R & D-driven enterprise and is one of the few domestic enterprises that can independently develop SOC chip test equipment. The self-developed E06 series test system has strong market competitiveness and high performance-to-price advantage in the core performance index. at present, the prosperity of the semiconductor industry is high, and the company is expected to make great progress in the field of semiconductor testing machines and become a new growth pole of the company.
Investment suggestion
We adjust the performance forecast for 2021-2022 and add the profit forecast for 2023. It is estimated that the income from 2021-2023 will be 20.98,27.02 and 3.424 billion yuan, respectively, and the net profit of return to the mother will be 3.57,4.53 and 570 million yuan, which are not rated yet.
Risk hint
The new display technology is iterated rapidly, the trade friction between China and the United States is intensified, and the orders of major customers are not as expected.