2022-01-18 Bank of China International Securities Co., Ltd. Yang Shaohui and Tao Bo conducted research on North Huachuang and issued a research report on "strong growth in performance and a substantial increase in non-net profit margin". The stock price is currently 314.6 yuan.
North Huachuang (002371)
According to the company's performance forecast for 2021, the operating income in 2021 is expected to be 84.78-10.901 billion yuan, an increase of 40 percent over the same period last year; the net profit of homing is 9.40-1.208 billion yuan, an increase of 75 percent over the same period last year; deducting non-net profit is 6.90-887 million yuan, an increase of 250 percent over the same period last year; and basic earnings per share are 1.87 yuan per share-2.41 yuan per share.
Support the main points of rating
Full-year profit exceeded expectations, deducting non-net profit margin increased significantly. The company expects the median annual revenue range to be 9.689 billion yuan, an increase of 60% over the same period last year; the median net profit for the whole year is expected to be 1.075 billion yuan, an increase of 100% over the same period last year; and the median annual non-net profit is expected to be 789 million yuan, an increase of 300% over the same period last year. The deduction non-net profit margin reached 8.1% in 2021, a sharp increase of 4.8 percentage points compared with 3.3% of the previous year. On the one hand, the superimposed profitability of electronic components continues to rise. On the other hand, the high growth of semiconductor equipment revenue leads to changes in profitability brought about by product structure optimization.
Revenue in the fourth quarter continued the trend of high growth. For a single quarter, the median revenue range of Q4 is expected to be 3.516 billion yuan, an increase of 58.35% over the same period last year and an increase of 37.08% compared with the same period last year; the median net profit of Q4 is expected to be 416 million yuan, an increase of 97.63% over the same period last year and 19.47% over the previous quarter; it is estimated that the median range of non-homed net profit of Q4 is 264 million yuan, an increase of 1100.00% over the same period last year and a decrease of 12.00%. The company's projected Q4 revenue is close to 36% of the projected annual revenue in 2021, with rapid year-on-year and month-on-month growth, and a significant increase in profitability in a single quarter.
Key equipment to win the head of customer recognition, will increase to help expand market share. The company has product layout in the field of semiconductors, pan-semiconductors and parts, among which the field of semiconductor equipment occupies a leading position in China. Plasma etching, oxidation / diffusion furnace, annealing furnace, PVD, CVD, ALD, cleaning and other key links of equipment have won batch orders from head customers, forming a strong customer stickiness. At the same time, the company has completed nearly 8.5 billion yuan of non-public offering financing in 2021, which will be used for semiconductor equipment research and development, industrial production expansion and precision components expansion project construction, reaching production capacity of 500 integrated circuit equipment, 500 emerging semiconductor equipment, 300 LED equipment and 700 photovoltaic equipment.
Profit forecast
In view of the company's card semiconductor key equipment, a wide range of products and high customer recognition, production capacity is expected to further expand, profitability significantly improved, raising the net profit of 2021-2023 to 10.361,966 million yuan, maintaining the buy rating.
Major risks to rating
The limited supply of spare parts leads to inadequate implementation of orders, international marginal political uncertainty, and the progress of R & D investment transformation is not as expected.
A total of 27 agencies have rated the stock in the last 90 days, including 19 buy ratings and 8 overweight ratings; the average institutional target price in the past 90 days is 436.21; according to the Securities Star valuation analysis tool, the North Huachuang (002371) good company has a rating of 3 stars, a good price rating of 1.5 stars and a comprehensive valuation rating of 2 stars. (rating range: 1-5 stars, up to 5 stars)