The company released 2020&2021Q1 financial results: the revenue in 2020 was 1.272 billion yuan, up 4.12% from the same period last year; the net profit was 173 million yuan, down 20.07% from the same period last year; and 161 million yuan was deducted from non-net profit, down 20.13% from the same period last year. In the fourth quarter alone, the operating income was 467 million yuan, up 29.34% from the same period last year; the net profit was 67 million yuan, down 4.08% from the same period last year; and 66 million yuan was deducted from non-net profit. 2021Q1 realized income of 354 million yuan, an increase of 52.26% over the same period last year, a net profit of 36 million yuan, an increase of 28.00% over the same period last year, and a deduction of 32 million yuan for non-net profit, an increase of 22.12% over the same period last year.
Sub-business: 1) sub-business: linear-driven industry: revenue of 1.262 billion yuan in 2020, accounting for 99.26% of the company's total revenue, down 0.28% from the same period last year. The revenue of the linear drive industry increased 3.81% year on year. 2) from a regional point of view, the domestic revenue in 2020 was 659 million yuan, up 13.77% from the same period last year, and the gross profit margin was 29.87%, a decrease of about 3.67% over the same period last year. Foreign revenue in 2020 was 604 million yuan, down 5.23% from the same period last year, and the gross profit margin was 33.14%, 6.62% lower than the same period last year.
Profitability: the gross profit margin in 2020 was 31.64%, down 5.36% from the same period last year; the net profit rate was 13.56%, 4.11% lower than the same period last year, of which the management expense rate decreased by 1.24% year-on-year, the financial expense rate increased by 1.99% year-on-year, and the sales expense rate decreased by 2.79% year-on-year. 2021Q1 gross profit margin was 25.07%, 5.67% lower than the same period last year, 6.57% lower than the previous year; 2021Q1 net profit margin was 10.21%, 0.93% lower than the same period last year, and 3.35% lower than the previous year.
Valuation and rating. It is estimated that the company's EPS for 21-22 years will be 4.87 RMB 6.69 yuan. With reference to the comparable company valuation, we believe that the reasonable PE valuation range for the company in 21 years is 25-30 times, and the corresponding reasonable value range is 121.75 yuan-146.10 yuan, which is rated as "better than the market".
Risk tips. Raw material price fluctuation, insufficient market demand in downstream industries, and exchange rate fluctuation risk.
