Zhang Chao and Wang Qiwen of China AVIC Securities Co., Ltd. recently conducted research on Sushi Experiment and released a research report "Double growth in revenue and net profit, no worries about performance in the second half of the year". This report gave a buy rating for Sushi Experiment, believing that its target price is 33.00 yuan, the current stock price is 28.58 yuan, and the expected increase is 15.47%.
Sushi Test (300416)
Revenue and net profit double growth under the epidemic
On August 15, the company released its 2022 semi-annual report, with operating income of 799 million yuan (+18.38%) in 2022H1, net profit attributable to shareholders of 106 million yuan (+30.32%), gross profit margin of 44.54% (the same as the same period last year), net profit margin of 15.59% (+1.54pcts); operating income of 2022Q2 was 455 million yuan (+16.16%), net profit attributable to shareholders of 77 million yuan (+18.19%), gross profit margin of 45.07% (-4.10pcts), and net profit margin of 19.75% (+0.56pcts).
From the above indicators, it can be seen that although the operating conditions in 2022Q2 have had a partial impact on the performance in the first half of the year, the overall performance in the first half of 2022 showed a good growth trend, mainly due to the implementation of control of the important subsidiaries of the company due to the epidemic, which has had a certain impact on logistics and experimental services. The company coordinates internal subsidiaries' resources and entrusts the experiment tasks to laboratories in other regions to reduce the impact of the epidemic on the overall company. At the same time, the subsidiary explores more market opportunities for the company by adjusting its operating model, improving technical capabilities, and strengthening customer service, thereby driving the double growth of revenue and net profit.
①Subject business:
test service sector achieved operating income of 470 million yuan (+31.27%) in 2022H1, and its business share (58.86%, +5.78pcts) further improved, mainly due to the rapid growth of environmental reliability test service business. Environmental testing service achieved revenue of 374 million yuan (+38.70%), and its business share reached 46.79% (+6.86pcts); another business under the sector grew steadily, achieving revenue of 96 million yuan ( +8.70%), the proportion of business has decreased (12.08%, -1.07pcts). We believe that the main reason is that the business service provider Shanghai Yite is unable to complete the corresponding tasks on time due to the impact of the epidemic.
test equipment sector achieved operating income of 286 million yuan (+11.06%) in 2022H1, and the proportion of business has decreased (35.77%, -2.36pcts). We believe that the main reason is that the impact of the epidemic on logistics and transportation and market development
② From the perspective of the operating conditions of major subsidiaries
Suzhou Guangbo 2022H1 achieved operating income of 123 million yuan (+39.67%) and net profit of 0.30 B (+68.88%), both of which were significantly improved. It was mainly due to the company's continuous market development through measures such as adjusting its operating model, setting up testing centers to expand testing categories, expanding laboratory production capacity, and improving customer response speed;
Shanghai Yite 2022H1 achieved operating income of 122 million yuan (-10.73%) and net profit of 15 million yuan (-27.63%), both of which were down, mainly due to the impact of the Shanghai epidemic;
Beijing Chuangbo 2022H1 achieved operating income of 63 million yuan (+29.68%) and net profit of 7.2512 million yuan (+54.38%), with a fast growth rate, mainly due to the gradual release of production capacity after the new laboratory site was put into production;
Chengdu Guangbo 2022H1 achieved operating income of 46 million yuan (+25.01%) and net profit of 18 million yuan (+49.73%), both of which have been improved, mainly due to the company's investment in supporting equipment, strengthening customer cooperation, and controlling cost expenditures, thereby ensuring profitability. The company announced on July 10, 2022 that Sushi Testing increased its shareholding ratio to 69.50% by acquiring 18.50% of the equity of the company's minority shareholders;
Xi'an Guangbo achieved operating income of 35 million yuan (+37.24%) and net profit of 8.8464 million yuan (+24.38%), with a high revenue growth rate. The company announced on July 10, 2022 that Sushi Testing has increased its shareholding ratio to 54.50% by acquiring 3.50% of the equity of the company's minority shareholders.
Judging from the above indicators, most of the major shareholders during the reporting period effectively ensured the steady improvement of the company's performance through operating control and other measures.
The gross profit margin level of the company in 2022H1 is relatively stable. From the perspective of major businesses, the gross profit margins of environmental testing services (55.37%, -4.25pcts), integrated circuit verification and analysis services (51.78%, -0.76pcts) and test equipment (32.16%, -1.22pcts) have all declined, but the overall gross profit margin is the same as the same period last year. We believe that the adjustment of the company's business structure has played a role in improving gross profit margin, which may be caused by the decline in operating income of other businesses with lower gross profit margins (16.42%, +4.00pcts) (5.37%, -3.42pcts) The gross profit margin in 2022Q2 decreased compared with the same period last year. We believe that the main reason is that the price decline of raw materials such as copper, aluminum, magnesium, and steel has not yet been reflected in the
expenses, the company's 2022H1 three-fee rate (20.73%, -2.09pcts) has decreased, including 5.81% (-0.62pcts), the management expense rate is 12.43% (-0.94pcts), and the financial expense rate is 2.49% (-0.53pcts). R&D expenses (56 million yuan, +27.82%) maintained a high growth rate, and the R&D expense rate was 6.98% (+0.52pcts).
The recovery of logistics will drive the delivery speed of orders
Company's accounts receivable in 2022H1, an increase of 23.79% from 2021. In the future, the recovery of accounts will drive performance growth; inventory is 398 million yuan (+12.75%), of which raw materials (123 million yuan, +37.27%), inventory goods (50 million yuan, +24.02%) and in-products (119 million yuan, +11.91%) have all increased, and at the same time, the goods issued (107 million yuan, -8.85%) have declined. We believe that it is mainly due to logistics impact. The above indicators may indicate that the company orders The orders are full, and the company is actively preparing stocks and producing. After the logistics resumes, the delivery of orders will be accelerated. At the same time, sufficient raw materials and inventory commodity reserves will provide a certain degree of guarantee for the company's gross profit margin level
The company's performance in the second half of the year is stable. Shanghai Yite needs to accelerate the implementation of the first employee stock ownership plan in 2019. The assessment period is for the two fiscal years from 2019 to 2020. Based on the operating income in 2018 and the operating income growth rate as the assessment indicator. In 2019 and 2020, it is necessary to increase by no less than 20% and 40% respectively in 2019 and 2020 to unlock 50% of the total shareholding of the employee stock ownership plan in this period. The company's operating income in 2019 and 2020 was RMB 788 million and RMB 1.185 billion, respectively. Compared with the revenue in 2018 (RMB 629 million), the growth rate was 25.31% and 88.40%, respectively. The unlocking conditions were met. The first phase of the employee stock ownership plan was implemented during the reporting period.
On March 21, 2022, the company announced that it plans to implement the second phase of the employee stock ownership plan. On June 7, 2022, it announced that it had completed the transfer of 2957,014 shares (accounting for 1.04% of the company's total share capital as of June 2, 2022) to a special account. According to this shareholding plan, the assessment period is for the two accounting years from 2022 to 2023. Based on the operating income and net profit in 2021, and based on the operating income growth rate and net profit growth rate as the assessment indicators, both 20% and 44% must be increased by 2022 and 2023 respectively before 50% of the total shareholding of this employee stock ownership plan can be unlocked respectively. Based on this calculation, the company's operating income and net profit in 2022 must reach 1.802 billion yuan and 265 million yuan respectively. Combined with the operating income and net profit in 2022 H1, the operating income and net profit in the second half of 2022 must reach 1.003 billion yuan and 141 million yuan respectively, accounting for 55.68% and 53.02% of the operating income and net profit in the unlocking conditions in 2022, before the corresponding stock can be unlocked in proportion
From the company's operating income in 2021 and 2020, the company's operating income in 2021 and 57.43% of the annual performance ratio, and the net profit accounted for 57.10% and 60.91% respectively, the company's operating income and net profit in the second half of 2022 have reached an assessment. The pressure on indicators is relatively small, so we believe that the company's performance in the second half of the year is maintained on the basis of maintaining stable growth. After the epidemic is effectively controlled, the performance is expected to continue to be fulfilled. In addition, the company implements an equity incentive plan for Shanghai Yite core personnel in 2021. From the perspective of assessment indicators, Shanghai Yite's operating income and net profit in 2022 must reach 301 million yuan and 32 million yuan respectively, before it can unlock the stocks attributable to the incentive targets in the corresponding proportion. Combined with the operating income and net profit of 2022 H1, which is 122 million yuan and 15 million yuan respectively, the operating income and net profit in the second half of 2022 must reach 180 million yuan and 17 million yuan respectively, accounting for 59.62% and 53.14% of the operating income and profit competition in the unlocking conditions in 2022.
From the perspective of Shanghai Yite's operating income in 2021 and the second half of 2020, accounting for 48.26% and 54.79% of the annual performance ratio, and net profit accounted for 63.06% and 74.93% respectively, the achievement of Shanghai Yite's operating income indicator in the second half of 2022 is under certain pressure and requires accelerated growth. It is relatively easy to achieve net profit assessment indicators. Therefore, we believe that Shanghai Yite's performance in the second half of the year is expected to achieve rapid recoupling and orders will be delivered at an accelerated speed.
Investment advice
We believe:
1) The company seizes the opportunities of the integrated circuit market and the new energy market, and actively develops test services such as vehicle testing and automotive-grade chip testing. With the high prosperity of downstream demand, the company has high growth potential;
2) The company's two main businesses of test equipment manufacturing and testing services develop in a coordinated manner, leading and promoting each other, and helping to develop downstream markets:
3) The gradual release of laboratory production capacity in the company's fundraising and investment projects will Provide strong support for performance growth
Based on the above viewpoint, we expect the company's operating income from 2022 to 2024 to be 1.847 billion yuan, 2.235 billion yuan and 2.682 billion yuan, respectively, and the net profit attributable to shareholders will be 258 million yuan, 334 million yuan, and 423 million yuan, respectively, and the EPS will be 0.70 yuan, 0.90 yuan and 1.14 yuan respectively. The "buy" rating is maintained, with a target price of 33.00 yuan, corresponding to 47.14 times, 36.67 times and 28.95 times in 2022-2024.
risk warning
raw material prices have risen, fundraising projects are less than expected, and market development is less than expected
Securities Star Data Center calculates based on the research report data released in the past three years, the research team of CITIC Securities Fu Chenshuo has conducted in-depth research on the stock, with the average prediction accuracy in the past three years as high as 95.25%. It predicts that the attributable net profit in 2022 will be 265 million yuan, and the predicted PE based on the current price conversion is 40.25.
latest profit forecast details are as follows:
A total of 11 institutions in this stock have given ratings in the past 90 days, 9 buy ratings and 2 increase ratings; the average target price of institutions in the past 90 days was 33.61.
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