Core conclusion

Event: on April 28, the company released its 21-year report and 22-year quarterly report. In 21 years, the company achieved revenue of 1.241 billion yuan, 96.6% of the same period last year; net profit of 245 million yuan, 533.5% of the same period last year; and 244 million yuan of non-net profit, 1003.4% of the same period last year. In the first quarter of 2002, the revenue was 262 million yuan, 4.3% of the same period last year; the net profit of returning to the mother was 74 million yuan, 93.0% of the same period last year; and 49 million yuan of non-net profit was deducted from the same period of last year, 35.9% of the same period last year.

The performance is in line with expectations. Benefiting from the development of wireless communication technologies such as 5G, Internet of things, Internet of things, WIFI6 and other wireless communication technologies and emerging application scenarios, the pace of localization is accelerated, the company continues to introduce major customers, the product structure is continuously optimized, and the annual performance has achieved a high increase (due to the implementation of the equity incentive plan in 21 years, it is confirmed that the share payment fee is 23.01 million yuan). Q1 is the decline of consumer demand and the slowdown of industry demand under the disturbance of the traditional off-season epidemic. However, the demand for high-end products such as miniaturized lithography, ultra-high frequency and high stable crystal oscillator is still strong, leading to a high increase in Q1 performance compared with the same period last year. Q1 achieved a net profit of 74 million yuan, 93.0% compared with the same period last year; deducting non-net profit of 49 million yuan, 35.9% of the same period last year. The reason why the year-on-year growth rate of non-net profit is lower than that of home net profit: in January 22, the company transferred all the shares of its holding subsidiary Penghe Precision, and the investment income from equity transfer calculated according to enterprise accounting standards and the provision for impairment of loans to Shenzhen Penghe Precision have a greater impact on Q1 non-recurrent profit and loss. In addition, Q1 Company pays a fee of 6.87 million yuan for withholding shares.

The continuous optimization of product structure has led to a substantial increase in gross profit margin. With the surge in demand for AIoT and the accelerated pace of localization, the company's high-end lithography small size, high fundamental frequency, thermal series, TCXO series products accounted for a significant increase in revenue, leading to a significant increase in gross profit margin. The 21-year gross profit margin was 39.38%, an increase of 18.17 pct over the same period last year. The gross profit margin of 22Q1 was 42.73%, an increase of 11.71 pct over the same period last year and a decrease of 2.66 pct from the previous month. The company is the only four in the world, the only one with lithography MEMS process production capacity of crystal oscillator manufacturers, with the core competitive advantage. The company continues to adjust the product structure, high-end lithography miniaturization, ultra-high frequency and other high-end crystal oscillator products continue to increase. In addition, the company continues to expand to automotive electronics, industrial control, RTC clock modules and other high value-added areas to create a second growth curve.

Profit forecast: the net profit for 22-24 is expected to be 3.8 pounds 5.0 / 640 million yuan, maintaining the "buy" rating.

Risk hints: under the disturbance of the epidemic, the demand of the industry slows down, and the competition in the industry intensifies the risk.