To pure technology (603690) in-depth report: thick accumulation and thin hair power wet equipment fast lane
Category: Company Institution: Cinda Securities Co., Ltd. Researcher: Fang Jing Date: 2021-08-27
High-purity process system faucet, wet equipment force. Starting from the high-purity process system, the company has gradually expanded the five business divisions of BU1-5, respectively, to carry out wet equipment/wafer regeneration, high-purity process systems, advanced process materials, biopharmaceuticals, optical sensing and optical devices business, which is expected to give full play to the advantages of customer resources and achieve the coordinated development of each business.
With the continuous expansion of business lines, the company's revenue composition continues to be rich, and the revenue scale is growing strongly.
From 2016 to 2020, the company's operating income increased from 263 million yuan to 1.397 billion yuan, with an average annual growth rate of 51.8%. In terms of profit, with the bulk shipment of wet equipment and the expansion of the sensing business with high gross margin, the company's profit margin has increased year by year, and the gross profit margin in Q1 of 2021 will reach 42%.
As a supplier of equipment and systems upstream of fabs, the growth of Zhichun Technology will benefit from the rapid expansion of domestic foundry capacity. According to our statistics, the new production capacity of domestic fabs will reach 640,000 pieces /month (equivalent to 8 inches) in 2021. The Company also expanded production through convertible bonds and fixed increase financing in 2019/20 to meet the growth of downstream demand.
System: Strong downstream demand, full coverage of local customers. High-purity process systems are the key infrastructure for fab construction and assume the role of chemical storage and delivery. High-purity process systems account for about 8% of the cost of fab construction, which is a high-value capital expenditure link in fab construction. In addition to integrated circuit manufacturing, there are also a wide range of high-purity process system requirements in the pan-semiconductor field of panels, photovoltaics, LEDs, optical fibers, biopharmaceuticals and other industries.
The leading manufacturers in the high-purity process system industry are mainly American, Japanese and Taiwanese manufacturers, and domestic manufacturers started late, and the company is one of the leaders. In 2020, the system business revenue was 863 million yuan, the gross profit margin was 32%, leading the competitors, and it had many first-line customers in the industry such as Shanghai Huali, SMIC, Yangtze River Storage, Hefei Changxin, SilanWei, Xi'an Samsung, Wuxi Hynix, etc. In 2020, all core customers gave continuous repeated orders.
Wet equipment: Customer verification is smooth, single-piece batch delivery is imminent. Cleaning is an important process link throughout the semiconductor industry chain, and each generation of process upgrades will bring an average of 15% of the cleaning step growth, and the importance is prominent. According to data from Taiwan's Institute of Industry and Research, the semiconductor cleaning equipment market space will reach 4.9 billion US dollars in 2020 and will reach 6.7 billion US dollars in 2025. At present, the global cleaning equipment market is monopolized by Japanese and Korean giants, in 2018, THE four manufacturers of DNS, TEL, SEMES, and Lam occupied more than 90% of the market share, and there are four manufacturers in China, namely Zhichun, Northern Huachuang, Shengmei, and Core Source Micro.
At present, the localization rate of wet cleaning equipment is about 20%.
In 2020, the company's single-piece wet equipment and trough wet equipment produced more than 30 units in the whole year, an increase of 50% over 2019. At the same time, the new order amount of single-chip wet process equipment exceeded 360 million yuan, an increase of 112% year-on-year. The product covers more than 28nm process nodes, and 14nm is expected to start verification next year. On the customer side, the company entered leading customers at home and abroad such as SMIC, China Resources Micro, Taiwan Lijing, TI, etc., and obtained duplicate orders. With the company's continuous expansion of production, we are optimistic about the company's continued share growth in downstream customers.
Business development: Wafer recycling fills the domestic gap, and mergers and acquisitions open up sensing business. The wafer recycling business is an extension of the wet process and is mainly used for the reuse of test wafers. With the continuous growth of wafer consumption and rising prices, the demand for wafer recycling is strong. At present, the share of domestic suppliers is less than 10%, and the willingness to replace domestic products is strong. The Zhichun Hefei plant is China's first plant to mass-produce 12-inch recycled wafers, and is expected to have an annual wafer recycling capacity of 1.68 million wafers when completed.
Optical sensing is another battlefield that the company has opened through the acquisition of Bohui. The global fiber optic sensor market reached $4.3 billion in 2018, providing considerable space. The merger and acquisition of Bohui has effectively increased the company's profits, contributing 317 million yuan in revenue and 70 million yuan in net profit in 2020.
Earnings Forecast and Investment Rating: We expect the company's revenue to be 1903/25.71/3.123 billion yuan and net profit attributable to the parent company of 3.16/4.24/524 million yuan in 2021/22/23, respectively, corresponding to the current pee price of 61/46/37 times. Compared with comparable companies in the same industry, the current valuation is still in a reasonable range. Considering that the company is a leading company in wet cleaning equipment, with the continuous breakthrough of equipment technology and strong certainty of domestic substitution, the market share is expected to continue to increase.
First coverage, giving a "Buy" rating.
Risk factors: the risk of cyclical fluctuations in the industry, the risk of downstream customers expanding production less than expected, and the risk of international trade friction.
Huaya Intelligent (003043) 2021 Mid-year Report Comments: Semiconductor structural parts business strongly leads the growth of raw material procurement has increased significantly
Category: Company Institution: Soochow Securities Co., Ltd. Researcher: Zhou Ershuang / Zhu Beibei / Luo Yue Date: 2021-08-27
Event: The company released the 2021 interim report: achieved operating income of 233 million yuan, a year-on-year increase of +34.59%; net profit attributable to the mother of 47.85 million yuan, a year-on-year increase of +27.52%, in line with our expectations; after deducting non-attributable net profit of 46.48 million yuan, +27.20% year-on-year.
Investment essentials
Semiconductor structural parts business strong leading growth, we expect that in the single quarter of the abundant orders in hand, the company's Q2 to achieve revenue of 141 million yuan, +34.48% year-on-year; net profit attributable to the mother of 0.29 billion yuan, +27.72% year-on-year. In the first half of 2021, by business: (1) Structural parts for semiconductor equipment achieved revenue of 143 million yuan, a substantial increase of 86.87% year-on-year, accounting for 61% of total revenue from 44% in the same period last year ;(2) Structural parts for rail transit equipment achieved revenue of 12.05 million yuan, +22.08% year-on-year ;(3) Structural parts for general equipment achieved revenue of 27.64 million yuan, year-on-year +43.07% ;(4) New energy and power equipment structural parts achieved revenue of 42.48 million yuan, year-on-year -23.82% ;(5) Structural parts for medical devices and equipment achieved revenue of 6.9 million yuan, a year-on-year increase of -37.43%.
In the first half of 2021, the company's net operating cash flow was -3.72 million yuan (52.1 million yuan in the same period last year), mainly due to the substantial increase in "cash for purchasing goods and accepting payment for services" in the reporting period to 126 million yuan, a substantial increase of 66% year-on-year.
We judge that this is mainly due to the company's expected order volume and raw material procurement increase. 2021H1 The company's inventory reached 0.82 billion yuan, a substantial increase of 60% over the end of 2020; 2021H1 Contract liabilities of 1.43 million yuan, a substantial increase of 104% over the end of 2020, we expect that the orders in hand are relatively abundant, laying the foundation for the annual performance.
Gross profit margin to maintain an upward trend, exchange losses led to a slight decline in net interest rate 2021H1 The company's comprehensive gross profit margin was 39.84%, +1.53pct year-on-year, we judge that the main part is the company's semiconductor high gross profit business volume, driving the overall gross margin level to improve. By business, the gross profit margin of semiconductor equipment/new energy and power equipment/general equipment structural parts of 2021H1 company was 53.16%/20.39%/17.23%, respectively.
2021H1 The company's net profit margin attributable to the parent company was 20.57%, compared with -1.10pct in the same period of 2020, mainly due to the increase in expenses during the period. 2021H1 The company's expense ratio for the period was 12.32%, +1.75pct year-on-year, of which the management/R&D/sales/finance expense ratios were 6.51%/3.22%/1.97%/0.62%, respectively, +0.83/-0.89/-0.44/+2.24pct, respectively, of which management expenses were mainly affected by the short-term impact of the company's listing expenses, while financial expenses were mainly caused by the depreciation of the US dollar and the exchange loss of 2.71 million yuan in the first half of the year.
Semiconductor precision metal parts manufacturers, industry expansion to welcome the golden development period of the company's main semiconductor precision metal parts, customer resources of high quality, has cut into the AMAT, micro and other leading supply chain system, with scarcity. According to the company's interim report, semi-June Equipment Market Data (EMDS) turnover report released by SEMI in July 2021 shows that the global revenue of North American semiconductor equipment manufacturers in June 2021 was $3.67 billion, +2.3% month-on-month and +58.4% year-on-year. On July 13, 2021, SEMI predicted that global semiconductor equipment manufacturers would generate $95.3 billion in revenue in 2021, +34% year-on-year, in its "Semiconductor Manufacturing Equipment Mid-Year Total Forecast - OEM Perspectives" report, and is expected to hit a new high of $100 billion in sales in 2022. The report tracks fab construction and fab equipment investment, capacity, products and technologies from 2021 to 2022, and is expected to sustain long-term equipment growth, considering that many semiconductor manufacturers will take up to two years to achieve after breaking ground. The company's products cover the main semiconductor equipment, which is expected to directly benefit from the wave of semiconductor equipment expansion.
Earnings Forecast and Investment Rating: We maintain the Company's 2021-2023 net profit forecast of 1.0/1.6/ 240 million yuan, and the current market capitalization corresponds to PE of 53/34/23X, respectively, maintaining an "overweight" rating.
Risk Warning: Semiconductor industry fluctuation risk; gross profit margin decline risk; customer industry transfer risk.
Yangyuan Beverage (603156): Light inventory operation Revenue recovered quarter by quarter
Category: Company Institution: Pacific Securities Co., Ltd. Researcher: Cai Xueyu / Huang Fusheng Date: 2021-08-27
In the first half_S of the year, the company achieved operating income of 3.411 billion yuan, an increase of 91.27% year-on-year; the net profit attributable to the mother was 1.159 billion yuan, an increase of 63.85%; the net profit deducted from non-attributable to the mother was 942 million yuan, an increase of 77.54% year-on-year; of which Q2 achieved sales revenue of 1.175 billion yuan, an increase of 132.26%; the net profit attributable to the mother was 421 million yuan, an increase of 131.76% year-on-year.
Revenue recovered quarter by quarter and grew better: From the perspective of the first half of the year (considering the low base of the epidemic, we compared with 2020 and 2019 respectively), the company's operating income was 3.411 billion yuan, an increase of 91.27% year-on-year, a slight decline of 1.31% over 19 years, and the revenue volume basically recovered from the same period in 19 years.
In the first half of the year, the net profit attributable to the mother was 1.159 billion yuan, an increase of 63.85% year-on-year, down 8.61% from 2019.
Gross profit margin in the first half of the year was 50%, down 1.11pct year-on-year, down 1.48pct from 19 years; sales expense ratio was 14.04%, down 1.86pct year-on-year, down 1.34pct from 19 years; management expense ratio was 1.14%, down 1.83pct year-on-year, up 0.22pct from 19 years; R&D expense ratio was 0.44%, down 0.12pct year-on-year, up 0.08pct from 19 years. Net profit margin of 33.98%, down 5.69pct year-on-year, down 2.72pct from 2019, mainly due to the decline in gross margin.
Single-quarter revenue compared with 19 years, Q1 revenue of 2.237 billion yuan, down 10.35%; Q2 revenue of 1.175 billion yuan, an increase of 22.15% year-on-year, Q1 channels are relatively cautious, insufficient stock, Spring Festival peak season sales beyond channel expectations, Q2 company is more active than in previous years, in the off-season according to different time nodes, continue to invest in the corresponding marketing pull activities, sales are better, channels always maintain a relatively low inventory state, short-term mid-autumn peak season the company will increase activities, The epidemic may affect some of the etiquette needs of visiting relatives and friends, but on the trend, the company is recovering better growth quarter by quarter.
Net cash flow from operating activities increased significantly, and cash flow improved: in the first half of the year, contract liabilities + other current liabilities totaled 1.789 billion yuan, an increase of 44.62% year-on-year, a slight decrease of 158 million yuan from the previous month, and a slight decrease of 150 million yuan from the same period in 2019, which is at a relatively healthy level. The net cash flow from operating activities in the current period was 867 million yuan, an increase of 1739.52%, mainly due to the increase in cash received from the sale of goods and services in the current period, and the cash flow gradually improved.
Channel expansion + new product strategy, the second half of the year is expected to exert force: during the reporting period, the company strengthened the promotion of high-end products such as six walnuts "2430" to seize the high-end product market; the existing products were packaged and upgraded to achieve the "high, high and low" product portfolio of the main sales products to meet the needs of different levels of markets and consumer groups. And for the college entrance examination season, the company launched a "refueling tank", focusing on creating a series of activities in the college entrance examination season to strengthen brand positioning. In addition, the company reached a strategic cooperation with "Hua & Hua" to reposition the company's corporate development strategy.
In terms of channels, while continuing to strengthen offline traditional channels, the company continues to promote the layout of e-commerce platforms, and exerts efforts to community group buying and live e-commerce channels such as Pinduoduo, Douyin, and Kuaishou, forming an offline online global marketing network. And on the basis of the "Mid-Autumn Festival" and "Spring Festival" two peak seasons to strengthen, and then create the green season, May Day, 618, Dragon Boat Festival and other prosperous sales nodes, omni-channel to carry out "theme unification, content unification, product unification, promotion unification" linkage activities, enhance brand potential.
Profit forecast
We expect the company's revenue to be 6.963 billion yuan and net profit attributable to the mother of 2.364 billion yuan in 2021, an increase of 41.46% and 49.81% year-on-year, and eps 1.87 yuan. The current stock price corresponds to a valuation of 15.48 times in 2021, which has a large margin of safety. The company lays out new plant milk, with soy milk as the entry point, to expand to the daily drinking scene, the current equipment is in place, is expected to be listed in the second half of the year. It is expected that the annual revenue growth rate will be 8.24% and 8.95% after next year, and the profit growth rate will be 10.58% and 11.37%. Considering the large size of the company and the stability of the company's performance, it will be given a valuation of 17 times next year, the target price will be 35 yuan, and the "overweight" rating will be given.
Risk Warning
The macro-economy has fluctuated greatly, the company's new product promotion has not met expectations, and there have been major flaws in operation.
CITIC Construction Investment (601066) 2021 interim report performance comments: Investment banking business position is solid ROE industry leader
Category: Company Institution: Everbright Securities Co., Ltd. Researcher: Wang Yifeng/ Wang Simin Date: 2021-08-27
Event: CITIC Construction Investment released its 2021 interim report, achieving revenue of 12.326 billion yuan in the first half of the year, an increase of 24.5% year-on-year; net profit attributable to the mother of 4.529 billion yuan, down 1.08% year-on-year; weighted average ROE of 7.17% in the first half of the year, the industry average ROE of about 4%; basic earnings per share of 0.55 yuan.
The brokerage business increased steadily year-on-year, and the business foundation was further consolidated. In the first half of 2021, the company's brokerage and wealth management business achieved revenue of 2.82 billion yuan, an increase of 10.6% year-on-year. Among them, the net income (including seats) of agent trading was RMB1.98 billion, with a market share of 3.40%, and the 8th place in the industry ranked 2nd higher than the end of the previous year. The company sold standardized financial products of 75.2 billion yuan, the net income of consignment financial products was 468 million yuan, the market share was 4.65%, and the 7th place in the industry ranked 1 place higher than the end of the previous year, and the company's brokerage business maintained steady growth.
The investment banking business is industry-leading and has a solid market position. The net income of the company's investment banking business was 1.96 billion yuan, which was basically flat year-on-year. In the first half of 2021, the company completed equity financing underwriting amount of 40 billion yuan, ranking 4th in the industry. Among them, the IPO main underwriting amount of RMB15.334 billion ranked fourth. In addition, the company has sufficient project reserves, and the number of IPO and refinancing projects under review ranks among the top two in the industry. In the first half of the year, the number and scale of corporate bonds were 975 singles / 642.5 billion yuan, ranking second in the industry.
Trading and institutional customer service revenue remained stable. The company's transaction and institutional customer service achieved operating income of 4.1 billion yuan, a slight decrease of 3.8% from the same period last year. We estimate that the company's own investment income in the first half of the year is about 1.9% (non-annualized), and the comprehensive return on investment is expected to decline compared with the same period last year. In terms of institutional clients, the company vigorously expanded its derivatives business, with an increase of RMB144.6 billion in the OTC options business and RMB34.75 billion in revenue swaps, maintaining rapid growth in its business.
The structure of asset management business has been further optimized, and it is proposed to establish an asset management sub-asset management sub-unit to accelerate the transformation. The company's asset management business achieved revenue of 570 million yuan, the company's entrusted asset management scale was 428 billion yuan, ranking 7th in the industry, and the company's active management products accounted for 77% of the total asset management scale, an increase of 9 percentage points over the end of 2020, and the business was actively transformed into active management. The company also intends to invest no more than RMB2.5 billion to establish a wholly-owned asset management subsidiary, which is more conducive to the transformation of asset management business.
Maintain the "neutral" rating of A shares and the "overweight" rating of H shares. The main reason for the sharp increase in the company's revenue and the slight decline in net profit attributable to the mother was the impact of the commodity sales business, excluding its impact on the revenue in the first half of the year, which was basically the same as the same period last year. The company's strength in brokerage business has been further strengthened, and the leading position in the industry such as investment banking has been solid.
Based on the active trading in the market and the steady growth of the investment banking market, we have raised the company's 21-year and 22-year profit forecasts and added a new 23-year profit forecast, and it is expected that the net profit for 21-23 years will be 9.55 billion yuan (up 35%), 11.852 billion yuan (up 56%) and 13.676 billion yuan, respectively.
Risk Warning: The large fluctuations in the secondary market have caused a decline in self-operated income; the market volume has declined.
Liugang Steel Co., Ltd. (601003): Product structure optimization superimposed on low-cost strategy The net profit in the second quarter of the single quarter is close to the historical record
Category: Company Institution: Everbright Securities Co., Ltd. Researcher: Wang Zhaohua Date: 2021-08-27
Event: The company released the interim report, in the first half of the year, the operating income was 40.544 billion yuan, an increase of 76.25% year-on-year; the net profit attributable to the mother was 1.888 billion yuan, an increase of 141.78% year-on-year. Among them, in the second quarter, the operating income was 22.935 billion yuan, an increase of 86.21% year-on-year; the net profit attributable to the mother was 1.224 billion yuan, an increase of 98.6% year-on-year.
The completion of two blast furnaces in Guangxi Iron and Steel has further enriched its product structure: at the end of 2020, the company completed the capital increase and holding of Guangxi Iron and Steel. As of June 30, 2021, the two blast furnaces of Guangxi Iron and Steel have been completed, and the actual production capacity of molten iron has reached 6.08 million tons per year. In the first half of 2021, the company achieved steel sales of 5.595 million tons, an increase of 34.2% year-on-year. Among them, the sum of the sales volume of medium and thick plates and profiles of Liugang Co., Ltd. was 4.8792 million tons, an increase of 17.04% year-on-year; guangxi iron and steel's new cold-rolled sales volume was 440,200 tons, and hot-rolled sales were 270,400 tons, driving the company's plate sales to increase from 15.13% in 2020 to 26.46%.
The volume and price of steel products rose together, and the company's operating income hit a record high in the second quarter: in the first half of 2021, the prosperity of the steel industry increased, the price of steel products rose sharply, and the average unit price of plates and small materials in the company's products was 4584 and 4136 yuan / ton, up 37.79% and 31.86% year-on-year, respectively, and the average unit price of new cold rolling and hot rolling was 5196, 4801 yuan / ton (due to the new production capacity, there is no comparable year-on-year increase), Driving the company's operating income in the second quarter for the fourth consecutive quarter to a record high.
Product structure optimization superimposed low-cost strategy, the second quarter of a single quarter net profit close to the highest value: in the first half of 2021, although the price of raw materials rose sharply, the company through the optimization of coal blending, ore blending work, the implementation of low inventory, opportunity procurement strategy, timely adjustment of the plate, slab-based production mode, in the production of multiple ways through process innovation, technical research, internal potential mining, and strive for freight rate concessions to reduce costs, to ensure that the gross profit margin of products improved, in the first half of 2021 the company's product gross margin level of 13.28% , the second highest level since 2008, only slightly lower than the level of 2018 (14.39%); in the second quarter of the single quarter, the company achieved a net profit attributable to the mother of 1.224 billion yuan, the third highest level in history, close to the highest level (of which the company's net profit attributable to the mother in Q4 2017 reached a record high of 1.391 billion yuan, and in Q4 of 2018, the historical second high value was 1.355 billion yuan).
Adhere to green development, and the energy consumption per ton of steel has reached the best level in history: implement the work requirements of "carbon peaking and carbon neutrality" and adhere to green and low-carbon development. In the first half of the year, the comprehensive energy consumption of Liugang Steel co., Ltd. per ton of steel was 505.82 kg of standard coal, down 34.75 kg of standard coal year-on-year, the best level in history. The comprehensive energy consumption of guangxi iron and steel tons of steel is 563.36 kg of standard coal, showing a downward trend month by month.
Profit forecast, valuation and rating: As a leading steel enterprise in Guangxi, Liugang has significant geographical advantages, and after holding Guangxi Iron and Steel, the company's product output has increased and the structure has been optimized, and it is expected that the company's future profitability is expected to continue to improve, maintaining the company's profit forecast, with a net profit of 3.957 billion yuan, 4.086 billion yuan and 4.311 billion yuan in 2021-2023, corresponding to EPS of 1.54, 1.59 and 1.68 yuan, maintaining the "overweight" rating.
Risk warning: Guangxi steel new production capacity production is less than expected; steel demand fell sharply in the second half of the year.
Zhongxin Secco (002912) 2021 interim report comments: The front end is back-end to resume positive growth The back-end is affected by the overseas epidemic
Category: Company Institution: Everbright Securities Co., Ltd. Researcher: Ryo Ishizaki / Kai Liu Date: 2021-08-27
Event: The company released the 2021 interim report, achieving operating income of 340 million yuan in the first half of the year, an increase of 1% year-on-year; net profit attributable to shareholders of listed companies - 44.33 million yuan, year-on-year from profit to loss; excluding the impact of equity incentive expenses of 57.2 million yuan, the net profit was 12.87 million yuan, down 81% year-on-year; basically consistent with the previous forecast, in line with expectations.
Front-end: Broadband network products resumed positive growth, and mobile network products increased rapidly. In the first half of the year, broadband network products achieved revenue of 160 million yuan, an increase of 24% year-on-year, and gross profit margin of 86.8%, down 1.01pct year-on-year. The revenue growth was mainly due to the recovery of industry demand after the epidemic, and the acceptance of some projects was postponed from Q4 last year to the first half of this year. We believe that the main energy of the relevant investment and construction departments in 21 years is focused on planning and formulation, and it is expected to enter the construction boom cycle in 22 years. Mobile network product revenue of 92.07 million yuan, an increase of 103% year-on-year, gross profit margin of 68.5%, down 2.33ptc. The company launched 5G mobile network products in a timely manner and is developing 5G fixed mobile network products, which are expected to be released in the second half of 2021. We believe that as a post-5G product, the mobile network is expected to enter a rapid upward period in 22 years, replicating the growth path of 16 to 18 years.
Back-end: Greatly affected by the overseas epidemic. In the first half of the year, online content security revenue was 20.47 million yuan, down 57% year-on-year. Big data operation revenue was 10.98 million yuan, down 85% year-on-year. Mainly affected by the epidemic, overseas business expansion is more difficult, resulting in some order signing and implementation have been delayed.
Equity incentive expenses suppress apparent profits and will ease year by year in the future. According to the previous disclosure data and annual report data, the company's equity incentive fee for 20 to 24 years is about 0.6/1.3/0.9/0.9/0.4/0.1 billion yuan, so it further suppresses the release of performance, and now the stock price has fallen more, close to the restricted stock grant price.
Continue to invest in R&D, consolidate the advantages of traditional fields and actively expand new directions. The company continues to invest a lot of manpower and material resources in the pre-research and development of new products, R & D investment accounted for 43.41% of operating income, the number of R & D personnel reached 808 people, accounting for 57.14% of the company's total number of people. On the one hand, we continue to increase R&D investment in traditional business areas to maintain a continuous leading edge in products and technologies; on the other hand, we actively transform into The ToB business (enterprise digital transformation), with greater investment in early R&D and marketing.
The company's own logic is constantly verified: front-end and back-end extension, multi-department expansion. After years of continuous hard work, the company's management team has continuously verified its own logic. Sales moved from distribution to direct sales, and the proportion of direct sales rose from 74% to 84% in 18-20 years. Products were extended from the front end to the back end, and the proportion of network content security and big data operation products increased from 10.37% to 21.28% in 18-20 years. The business field has expanded from network information and public security to security and industry enterprise applications.
Maintain "Buy" rating: Maintain net profit forecast of 3/4.5/500 million yuan for 21-23 years, corresponding to PE 22X/15X/13X.
Valuation levels already have a margin of safety, maintaining a "buy" rating.
Risk Warning: Fluctuation risk of government procurement cycle, fluctuation impact of project acceptance cycle, and equity incentive fee suppression performance release.
Focus Media (002027) 2021 semi-annual report comments: The performance is in line with market expectations The competition for the benefit of single screen costs has slowed down significantly
Category: Company Institution: Soochow Securities Co., Ltd. Researcher: Zhang Liangwei Date: 2021-08-27
In the first half of 2021, the company achieved revenue of 7.227 billion yuan, an increase of 58.90% year-on-year, and a net profit attributable to the mother of 2.900 billion yuan, an increase of 252.23% year-on-year. Among them, Q2 achieved revenue of 3.734 billion yuan, an increase of 39.71% year-on-year, and net profit attributable to the mother of 1.532 billion yuan, an increase of 95.04% year-on-year. At the same time, the company expects to achieve a net profit attributable to the mother in Q3 of 1.480-1.630 billion yuan, an increase of 7.32% to 18.20% year-on-year.
The results are in line with market expectations. In addition, the Company changed the purpose of the repurchase of shares, cancelling 236 million shares of the Company, representing 1.66% of the total share capital of the Company, and announcing interim dividends. Shareholder feedback exceeded market expectations.
The company's performance was in line with expectations, but benefited from the improvement of the competitive landscape and the decline in building media costs, which was better than market expectations. The company's 2021Q2 revenue and profit grew rapidly year-on-year, mainly due to the low base caused by the epidemic last year, and in terms of splitting, building media achieved revenue of 3.410 billion yuan, an increase of 30.3% year-on-year, and cinema media achieved revenue of 313 million yuan, an increase of 626.3% year-on-year. Although the company's revenue rose sharply in this quarter, the operating cost of building media was only 1.008 billion yuan, or even fell by 4.51% year-on-year, while the company's current number of points was 2.464 million, an increase of 5.52% year-on-year, indicating that the company's single-screen cost fell by about 10% year-on-year. The cost decline in the quarter was better than market expectations for rising rental costs. Mainly benefited from the improvement of the competitive landscape. Based on this, we will raise the company EPS.
The tightening of education and training policies has limited impact on the company's performance. The company's 2021Q2 profit did not rise significantly higher than Q1 month-on-month, mainly due to: 1. The number of people returning to their hometowns during the Spring Festival in 2021 decreased significantly, resulting in no significant decrease in advertisers' enthusiasm during the Spring Festival this year; 2. The advertising of education and training institutions was tightened by the policy, and the advertising of Focus online education advertisers was negatively affected. However, the company's revenue structure is diverse, and although online education advertisers account for a certain proportion of revenue, Focus continues to increase the development of advertisers in various industries, resulting in limited negative impacts. Looking back at 2020, the company's revenue growth exceeded market expectations, because of the increase in advertisers in different industries such as new consumption, finance, and games, and even the emergence of new consumption and fund advertisers was unpredictable in advance. The improvement in the profitability of advertisers in many industries brought about by the macroeconomic recovery is an important reason for increasing the advertising of brands such as building media.
Earnings Forecast and Investment Rating: As the company's costs have benefited from improved competitive landscape, we have raised the EPS for 2021-2023 from 0.41/0.51/0.60 to 0.42/0.51/0.61, and the current market value corresponds to PE of 19.10/15.67/13.05 times, respectively. We maintain a company "Buy" rating.
Risk Warning: The macro economy fluctuates more than expected, competition intensifies, and payment collection is unfavorable
Temple of Heaven (600161): Steady growth in performance Research and development work is progressing smoothly
Category: Company Institution: Everbright Securities Co., Ltd. Researcher: Lin Xiaowei / Wang Mingrui Date: 2021-08-27
Event: The company released the 2021 semi-annual report, achieving operating income of 1.811 billion yuan, +16.50% year-on-year; net profit attributable to the mother of 337 million yuan, year-on-year +18.75%; deduction of non-attributable net profit of 332 million yuan, year-on-year +19.55%; operating net cash flow of 629 million yuan, year-on-year -9.01%; EPS 0.26 yuan. The results are in line with market expectations.
Comments:
Steady growth in performance, continuous expansion of pulping capacity: 2021Q1 ~ Q2, the company's single-quarter operating income was 847/964 million yuan, +11.80%/20.97% year-on-year; net profit attributable to the mother was 1.52/185 million yuan, +15.06%/21.96% year-on-year; deduction of non-attributable net profit was 1.50/181 million yuan, +16.59%/22.12% year-on-year.
With the gradual control of the epidemic, the company's pulping, production, sales and other aspects of work returned to normal, and revenue and profit achieved steady growth. In 2021H1, 55 companies collected 874.89 tons of plasma from the operating plasma station, an increase of 177.67 tons over the same period last year, achieving a recovery increase of 25.48%; compared with the same period of 2019, an increase of 74.14 tons, an increase of 9.26%. As of 2021, the company has set up 12 new pulp stations in Gansu, Hebei, Jiangsu and other places, including Huan County, Yongdeng, Yuzhong, Kang County, Lincheng and Suining.
Research and development work continues to advance, the comprehensive utilization rate of plasma is expected to increase: in 2021H1, the company obtained two clinical approvals: Chengdu Rongsheng subcutaneous injection of human immunoglobulin, recombinant human coagulation factor VII.a. Five clinical studies progressed smoothly, including the completion of phase III clinical trial subjects of Chengdu Rongsheng injection of recombinant human coagulation factor VIII., the completion of enrollment of Participants in The Phase III clinical trial of Chengdu Rongsheng Intravenous Injection of Human Immunoglobulin (pH4, 10%), the Successful Enrollment of Participants in the Phase III Clinical Trial of Chengdu Rongsheng Intravenous Cytomegalovirus Human Immunoglobulin III., the Completion of The Phase III Clinical Trial of Lanzhou Blood Human Prothrombin Complex; and the Successful Passage of GMP On-site Examination of Chengdu Rongsheng Human Prothrombin Complex. With the enrichment of blood products, the company's comprehensive plasma utilization rate is expected to be improved, thereby continuing to enhance profitability.
Earnings Forecast, Valuation and Rating: Maintain the forecast that the company's EPS for 2021-2023 will be 0.60/0.73/0.88 yuan, an increase of 29.57%/21.08%/20.40% year-on-year, and the current price corresponding to PE will be 54/45/37 times, respectively, maintaining the "overweight" rating.
Risk warning: the amount of pulp extraction is lower than expected; the progress of product research and development is slower than expected.
Desay SV (002920): Limited impact of missing cores Intelligent acceleration cashing in
Category: Company Institution: Huaxi Securities Co., Ltd. Researcher: Cui Yan / Liu Zejing Date: 2021-08-27
Event overview
The company released the 2021 semi-annual report: 2021H1 achieved revenue of 4.083 billion yuan, a year-on-year increase of +57.3%; attributable net profit of 370 million yuan, +61.0% year-on-year; deduction of non-attributable net profit of 361 million yuan, +234.3% year-on-year. Among them, 2021Q2 achieved revenue of 2.041 billion yuan, a year-on-year increase of +40.6%; net profit attributable to the mother of 141 million yuan, a year-on-year -18.9%; deduction of non-attributable net profit of 138 million yuan, a year-on-year increase of +113.1%.
Analytical decisions:
Intelligent acceleration cashing The short-term impact of missing cores is limited
On the revenue side, the company's 2021H1 revenue was 4.083 billion yuan, +57.3% year-on-year, mainly due to the continuous release of new products in the company's three major business lines of intelligent cockpit, intelligent driving and networking services. Among them, the 2021Q2 revenue was 2.041 billion yuan, +40.6% year-on-year, 0.03% month-on-month, and the slight decrease in the quarter-on-quarter was mainly due to the pressure of production and marketing of major customers affected by the lack of cores in Q2. In terms of sub-products, the 2021H1 company for the first time to split and confirm the revenue of intelligent driving and network service, intelligent cockpit, intelligent driving, and network service achieved revenue of 33.38, 5.71 and 174 million yuan respectively, +44.1%, +182.7% and +121.3% year-on-year, respectively.
Profit side, 2021Q2 main business gross margin of 24.7%, +1.0pct year-on-year, -0.3pct, in the context of industry core shortage still maintains a high gross profit margin, especially the intelligent driving business 2021H1 Gross margin reached 19.1%, +15.6pct year-on-year. Driven by the rapid growth of revenue, the company's net profit attributable to the mother in 2021H1 was 370 million yuan, +61.0% year-on-year. Among them, the 2021Q2 attributable net profit was 141 million yuan, a year-on-year -18.9%, mainly due to the non-impact of the listing of the 2020Q2 shareholding company Ficha, if the non-attributable net profit caliber is deducted, it is +113.1% year-on-year, fully benefiting from the logic of the intelligent wave of automobiles to further verify; -38.2% month-on-month, mainly due to the sharp increase in research and development expenses, 2021Q2 The company's sales, management, research and development, and financial rates were 2.7/3.0/11.2/-0.4% respectively, and 0.2/+, respectively 0.3/+0.3/-0.2pct, -0.1/+0.8/+3.2/-0.7pct.
Intelligent transformation of the main business of the cockpit The abundant orders accelerate the performance of the release of cockpit products for the company's traditional main business, covering the in-vehicle infotainment system, driving information display system, display terminal, body information and control system.
Trend point of view, intelligent cockpit products with cost-effective and easy to perceive characteristics, rapid increase in penetration rate, large screen, multi-screen integration as the main development direction, since 2018 the company to promote the transformation of traditional products to the direction of intelligent cockpit:
1) The core product in-vehicle infotainment system has successively broken through white-point customers such as Toyota (Indonesia) and Maruti Suzuki (India) in 2020, and obtained new project orders from original core customers; the new multi-screen smart cockpit has now been supplied in the models of many leading domestic car companies, and has obtained orders for new projects such as FAW Hongqi, GAC Passenger Car, and Changan, and the new generation of intelligent cockpit based on Hypervisor architecture will also be mass-produced in 2020;
2) Benefit from the on-board display screen high-definition large screen, the company's emerging business display modules and systems, LCD instruments have also achieved better development, in 2020 will achieve more than 100% year-on-year growth, LCD instruments are now supporting BYD, GAC passenger cars, Geely, Great Wall and other key car companies; intelligent cockpit domain controllers, digital instruments, etc. have obtained new project orders from mainstream car companies such as FAW Toyota, Great Wall Motors, Geely Automobile, GAC Passenger Cars, Chery Automobile, BYD, etc.;
3) In other aspects, the company has signed a cooperation agreement with Huawei on all-scenario smart travel ecological solutions, and established in-depth cooperation projects around hiCar solution platform-level cooperation, testing capability co-construction, and joint innovation of vehicle ecology.
ADAS amplification is about to bind Nvidia Nugget Smart Drive
In addition to the main business of the cockpit, the company strategically lays out intelligent driving, covering L2, L3 and above:
1) Advanced assisted driving ADAS: 360 surround view, fully automatic parking, driver monitoring to achieve large-scale mass production, successfully broke through SAIC GM, Great Wall, SAIC, Weilai and other white-point customers, the new generation of integration of the above functions and AEB, high-speed automatic driving assistance, congestion automatic follow-up and other functional products have also won the order of domestic leading car companies, the future will continue to benefit from ADAS penetration increase;
2) Autonomous driving domain controller: bound to Nvidia, based on Nvidia chip for underlying and middle-layer software writing and hardware manufacturing, L3 level automatic driving domain controller IPU03 is equipped with Xiaopeng P7, and will also be equipped with other models; IPU04 based on NVIDIA Orin chip has now cooperated with Ideal Car and obtained multiple project fixed points.
Autonomous driving chip track, Nvidia with a complete software ecology and a very high degree of openness, relative competitive advantage is obvious, the company as the only partner of Nvidia, deeply benefit from the introduction of high-level automatic driving and strong binding relationship with Nvidia.
Investment advice
As a domestic automotive electronics leader, the company has continued to strategically lay out intelligent cockpits, ADAS and The Internet of Vehicles in recent years, and has benefited from the industrial space and development process of intelligent vehicles for a long time with the promotion of the wave of automobile intelligence and networking. We maintain our earnings forecast and expect the company's net profit attributable to the parent company for 2021-2023 to be 6.94/9.34/1.140 billion yuan, corresponding to EPS of 1.26/1.70/2.07 yuan, and the current stock price corresponding to PE of 74/55/45 times, maintaining an "overweight" rating.
Competition in the industry has intensified; product development and customer project acquisition have fallen short of expectations; chip shortages; and raw material costs have risen.
Yunnan Copper (000878) 2021 semi-annual report comments: benefiting from the rise in copper prices Deducting non-profit increases
Category: Company Institution: Guosen Securities Co., Ltd. Researcher: Mengluan Liu Date: 2021-08-27
Company non-net profit increased by 35% year-on-year in the first half of 2021
In the first half of 2021, the company achieved operating income of 59.324 billion yuan, an increase of 47.16% year-on-year; net profit attributable to the parent company of 252 million yuan, down 10.78% year-on-year; net profit after deducting non-recurring gains and losses of 262 million yuan, an increase of 34.93% year-on-year; operating net cash flow of -1.780 billion yuan, down 191.68% year-on-year. The company recorded a credit impairment loss of 3.0497 million yuan, a provision of 127 million yuan for inventory price decline, and a decrease of 130 million yuan in the company's total profit in the first half of the year.
The layout of the three major domestic copper smelting bases has been completed, and the company has formed three major smelting bases in China, with a total of 1.3 million tons of cathode copper production capacity and 920,000 tons of equity production capacity, ranking first in the first echelon of domestic copper smelting enterprises. Benefiting from the sharp year-on-year increase in copper prices and the maintenance of copper concentrate processing fees at a record low, Diqing Nonferrous Metals' net profit in the first half of the year reached 596 million yuan, an increase of 224 million yuan or 60.2% over the same period last year.
The company's expense ratio decreased during the period
The company's expense ratio decreased during the first half of 2021. The company's operating income in the first half of the year increased year-on-year mainly because of the sharp rise in copper prices, the company's main products such as copper cathode production and sales did not change much, so the expense ratio decreased significantly during the first half of the year, only 2.6%. During the reporting period, the company's long-term and short-term borrowings increased, and the company's self-produced debt ratio was 72.6% as of the end of June, a slight increase from the end of 2020.
Investment advice: Maintain an "overweight" rating
It is estimated that the company's net profit attributable to the parent company in 2021-2023 will be 9.07/10.49/1.109 billion yuan, a year-on-year growth rate of 138.9/15.6/5.7%, diluted EPS is 0.53/0.62/0.65 yuan, and the current stock price corresponding to PE is 29.1/25.1/23.8X. The company is the head of domestic copper smelting enterprises, as a copper listing platform under Chinalco Group has the advantage of raw material supply, the asset quality is further improved after the impairment of assets in old and weak mines, the price of sulfuric acid rises to thicken the company's profits, and the "overweight" rating is maintained.
The risk of macroeconomic volatility led to a larger-than-expected decline in copper, precious metals and sulfuric acid prices; the Company's copper concentrate production fell short of expectations.