Shennan Circuits Co.Ltd(002916) ( Shennan Circuits Co.Ltd(002916) )
Shennan Circuits’ announced 1q22 Results. Ingresos / np grew 21,7% / 42,9% yoy, Reaching rmb3316mn / rmb348mn. 1q22 ‘s results were largely in line without Forecast, with Positive margin Surface. Mirando hacia adelante, nos quedamos con el entorno de macro duro y la fuente de los casos covid en China. Although the later has Limited Impact on the shennan ‘s Production, the requirement remains as Supply Chain Disruption is expected to last Long. Maintainhold, adjusted TP to rmb102.
1q22 resultados largely in line with Positive margin Surface. 1q22 ‘s Revenue was largely in line with our Forecast, Accounting for 20.1% of our fy21 estimate (vs. 19.5% for 1q21). GPM was 26.8%, 4.3% higher than 4q21, mainly due to 1) favourable product Mix, 2) Recovering GPM for pcba, 3) Improving Operational Efficiency as new Nantong Factory ramping upproduction and 4) product / Customer Structure Optimization for PCB and Substrate Business.
El bloqueo parcial de los ingresos se ha limitado al impacto en la producción, pero la demanda permanece. El agente de reserva ha limitado la producción de impacto en China como algunas fábricas están actualmente bajo gestión de sistemas de bucle cerrado. However, The Impact on Demand and Supply Chain is expected to last Long. Creemos que Data Center / auto demand a mantendrá fuerte este año, pero el desplazamiento parcial por el chip prolongado corto. Para el mercado telefónico, los requisitos se encuentran en el momento. Registro de archivos tardíos de Telco, ~ 670k 5gbase stations (including 28k 700mhz) will be added in 2022 (vs. 650k / 640k in 2021 / 2020). La tapa superior será plana en 2022; However, 5G – related spending will be Lower and Detailed time Line of deployment is unclear.
Maintain hold, with new TP of rmb102. Esperamos que fy22 vuelva a grow18. 3% yoy, soportado por la nueva capacidad liberada este año y fuerte demanda de Data Center / auto / Substrate. However, Uncertainty will remain Long – than next expected as Supply Chain Disruption Persists. We trimmed target P / e multiple to 26.2x fy22e P / E, AVG. 2 – yr Historical forward P / E (vs. Prior 30x), and reduced TP to rmb102. Upside Potential: 1) Sooner – than – expected ease of chip shortage, 2) Stronger recovery in Consumer Demand and 3) Material Cost and logistic overhang removed.
