The company's net profit in 2020 increased by 55% to 85% year-on-year, showing relatively rapid growth. The company announced that net profit for 2020 was 0.87 to 104 million yuan, an increase of 55% to 85% over the previous year; net profit after deducting 0.74 to 92 million yuan, an increase of 45% to 80% over the previous year, showing rapid growth in performance.
The annual net profit corresponding to the Q4 net profit range of 2020 was 33 million yuan to 50 million yuan, an increase of 68% to 155% over the previous year. The company's net profit for the first three quarters of 2020 was -0.1 million, 316 million, and 48 million yuan respectively. The company's net profit for two consecutive quarters was around 50 million yuan. The business stabilized, and the business situation gradually got on the right track.
The customer structure was gradually adjusted successfully, laying the foundation for the company's long-term steady growth. As the original major customer, Samsung, gradually withdrew from the domestic market, Huawei phones experienced major fluctuations. The company's downstream customer demand has experienced major changes in the past two years. After two years of adjustment, the company's main customers are currently mainly customers such as OPPO, Huaqin, and major overseas customers.
The company's performance forecast shows that revenue in 2020 is basically stable. With the rapid development of overseas business and smart wearable business, the customer structure and product structure have been further optimized, and product gross margin has increased. At the same time, the company's internal organizational efficiency has improved, management efficiency has improved, measures to reduce costs and improve quality have achieved remarkable results, and expenses have been effectively controlled during the period.
We believe that the improvement in the company's profitability and internal management efficiency is mainly due to the gradual stabilization of the customer structure and the improvement of internal management.
Actively lay out the thermal conductivity solution business and explore new business directions. As data processing requirements increase, consumer electronics terminal cooling management requirements have increased dramatically, and consumer electronics thermal energy management solutions have become one of the main directions for component suppliers in the future. The company is actively laying out thermal energy management projects for consumer electronics terminals, mainly providing one-stop overall solutions for heat storage and heat dissipation. The company hopes that in the future, based on the service advantages of structural parts products, the cooling module will be integrated with the existing structural parts business to provide comprehensive services to downstream customers.
Investment advice: maintain a “increase in holdings” rating
Net profit for 20-22 is expected to be 103/1.52/172 million, a year-on-year increase of 82%/48%/14%. The corresponding PE is 23.6/16.0/14.1 times, maintaining the “increase in holdings” rating.
Risk warning: The macroeconomic economy continues to weaken, and product profitability continues to decline due to increased competition.
