Tonglian Precision (688210) Process Innovation Capability Continues to Improve

time:2022-09-29 16:04:36 source:clevelanddrifters.com author:Stock market
Tonglian Precision (688210) Process Innovation Capability Continues to Improve

In 2022H1, Tonglian Precision achieved revenue of 221 million yuan, a year-on-year increase of 40.87%; net profit attributable to the parent was 38.14 million yuan, a year-on-year increase of 91.34%; non-returned net profit to the parent was 29.45 million yuan, a year-on-year increase of 90.44%; net operating cash flow It was 61.51 million yuan, a year-on-year increase of 28.12%. The company's performance has grown rapidly, and it has actively accelerated the production capacity layout of the Changsha MIM precision structural parts production base. The company's revenue in the first half of the year was 221 million yuan, a year-on-year increase of 40.87%; the net profit attributable to the parent was 38.14 million yuan, a year-on-year increase of 91.34%. The company actively deploys and develops new categories of existing MIM business. The revenue of MIM precision metal parts related business is 159 million yuan, a year-on-year increase of 23.68%; the other precision metal parts related business income is 54 million yuan, a year-on-year increase of 126.17%. The company has strong process innovation capabilities, rich product lines and process types, and the gross profit margin in 2022Q2 is 40.25%, a month-on-month increase of 4.57pct. In addition, the impact of exchange rates has moderated, and exchange gains have increased. The company actively accelerates the construction progress of Changsha MIM precision structural parts production base, and prepares production capacity for new business layout to meet the downstream potential market demand. The company continued to increase investment in research and development, and its technological innovation capabilities continued to improve. The company has increased R&D investment in the application of titanium alloy materials, structural parts with special properties, complex processes and automation upgrades, and began to increase R&D investment in large-size MIM parts, shaft processing technology, and other precision metal processing technologies in the direction of medical devices. The company's R&D investment was 24.26 million yuan, a year-on-year increase of 27.46%. The company continues to carry out process innovation, further optimizes and improves the existing process technology and automation equipment involved in large-scale mass production projects, continues to improve production efficiency and yield, and improves the company's overall profitability. Under the development trend of functional upgrading, integration and thinning in the consumer electronics industry, the penetration rate of MIM precision structural parts suitable for small size, complex structure and wide material applicability is also increasing. At present, MIM technology is mainly used in the technical solutions of precision structural parts of Apple's existing TypeC products. The iPad product line will use the TypeC interface for the whole series. It is expected that more product lines will be expected to switch to the TypeC interface. The market of MIM precision structural parts The space is expected to open further. As an important downstream field of MIM, folding screen is expected to drive the growth of MIM market demand. According to DSCC data, it is expected that by 2026, the global shipments of folding screen mobile phones will reach 54.68 million units, and MIM, as the main component technology of the hinge, the core component of folding screens, is also expected to usher in explosive growth in its market size. As a new army in the MIM industry, the company will benefit from the upgrading of the consumer electronics industry. The company is a rising star of MIM, with significant late-mover advantage. Based on the performance of the interim report, we have raised our profit forecast. It is expected that the EPS from 2022 to 2024 will be 0.86 (+0.10), 1.30 (+0.17) and 2.04 (+0.22) respectively, corresponding to the existing stock price PE of 32X, 21X and 13X respectively , maintain a "strongly recommended" rating.

(Responsible editor:Fuel stock)