Event: the company released its 2021 annual report. The company achieved an operating income of 809 million yuan in 2021, an increase of 47.69% over the same period last year, a net profit of 135 million yuan, an increase of 67.46% over the same period last year, and a deduction of 126 million yuan in non-net profit, an increase of 69.45% over the same period last year, mainly due to an increase in income in 2021 over the previous year. Gross profit margin increased over the previous year. The company released the first quarter report of 2022. The company realized operating income of 126 million yuan, down 17.19% from the same period last year, and realized net profit of-6 million yuan, down 130.20% from the same period last year.
Comments: the performance in 2021 is in line with expectations, the performance in the first quarter of 2022 is under short-term pressure, and is optimistic about the company's long-term development.
The demand for miniaturization and low power consumption in the downstream market has led to the rapid development of advanced packaging. The company has seized the opportunity of the post-Moore era to optimize product structure + introduce core talents, and the proportion of advanced packaging has been increasing. With the multi-blooming of downstream applications such as AIOT and smart phones, and the requirements of miniaturization, low cost, low power consumption, high reliability and low cost, the advantages of advanced packaging are promising. The company's advanced packaging accounted for 19.26% in 2020. Advanced packaging accounted for 28.25% in 2021. In the process of expanding production, the company is also adjusting the product structure, focusing on the introduction of advanced packaging products to increase production capacity, reducing the proportion of traditional packaging. The company will continue to introduce and train high-level packaging and testing technology personnel, especially advanced packaging technology personnel, strengthen R & D investment, and further enhance the company's R & D strength and technical level.
The company continues to optimize the customer structure to introduce brand customers, while strengthening research and development to increase the proportion of technology to increase customer stickiness, customers are highly coincident with the leading enterprises in the industry. The company continues to research and develop packaging technology and packaging forms, and applies new technologies to the company's packaging and testing products. By the end of 2021, the company has 204 patents at home and abroad, including 11 invention patents, forming a series of core technologies. At the same time, in recent years, the company continues to optimize the customer structure, continue to introduce brand product customers, has achieved outstanding results. In terms of domestic customers, the company has highly overlapped with the leading enterprises in the industry.
The company continues to expand and strengthen its competitive advantage in the core technology field. In terms of high density and large matrix product design, the company has completed the upgrade design of DIP, SOP and TSSOP products, and is expected to continue to be put into mass production in the second half of 2022. In the development of packaging technology for third-generation semiconductor products, on the basis of stable mass production of 5GGaN microwave RF power amplifier plastic packaging technology of GaN has expanded the civil field and achieved mass production, and second, it has successfully developed the leading domestic and international plastic packaging technology of 5G macro base station high-power GaN RF power amplifier, and has completed the evaluation and certification of the technical route and scheme. The company's self-defined CDFN/CQFN packaging technology has completed research and development and entered the stage of mass production; the corresponding packaging products of the company's copper column-based flip-chip packaging technology have also entered the stage of mass production. Advanced substrate packaging products MEMS products have been developed, the products have entered the stage of small batch production, and some products have been mass produced. We are optimistic that the company will continue to expand the output of 5G GaN packaging products and increase the overall gross profit margin with the upsurge of the third generation semiconductor development.
Investment advice: due to the sales uncertainty brought about by the epidemic, we downgrade our forecast, reducing the company's annual net profit from 1.39 million in 21-22-23 to 1.38 million in 22-23-24, maintaining an overweight rating and optimistic about the company's long-term development.
Risk tips: the competitiveness of the advanced packaging market is lower than expected, the downstream demand is lower than expected, the epidemic situation is aggravated, and the R & D technical personnel are lost.