\u3000\u3000 Guangdong Create Century Intelligent Equipment Group Corporation Limited(300083) (300083)
Event: the company released the performance forecast for 2021. In 2021, the company is expected to realize a net profit attributable to shareholders of listed companies of 460 ~ 520 million yuan, with a year-on-year increase of 165.95% ~ 174.55%.
Comments:
The annual performance improved significantly, and the shipment of general machine tools continued to grow. In 2021, Guangdong Create Century Intelligent Equipment Group Corporation Limited(300083) is expected to realize a net profit attributable to shareholders of listed companies of 460 ~ 520 million yuan, with a year-on-year increase of 165.95% ~ 174.55%. Deducting non net profit is expected to achieve 345 million ~ 385 million yuan, with a year-on-year increase of 145.18% ~ 150.42%. Relying on the cost performance advantages, brand and technical advantages of machine tool products, the company’s shipment continues to increase. The annual shipment of 3C drilling machine products exceeds 10000 units, and the cumulative shipment exceeds 80000 units. The company’s shipments of general machine tools are also huge. In 2021, the shipments of vertical machining centers exceeded 10000, and the shipments of horizontal machining centers, gantry and lathes increased significantly.
Factors such as precision structural parts and equity incentive affect the annual profit, and the profit level is expected to improve in the future. In 2021, the company plans to withdraw credit impairment losses, asset impairment reserves and write off assets, reducing the net profit attributable to shareholders of Listed Companies in 2021 consolidated financial statements by about 216 million yuan. The company’s equity incentive fee in 2021 is about 100 million yuan, and its amount will decrease significantly in 2022 and 2023. At the same time, the company’s acquisition of minority shareholders’ equity in 2021 also affected the annual profit. In general, the annual profit of 2021 is affected by many factors, and the related impact events will weaken in the future. The profit level of the company is expected to continue to improve in the future. At present, the company’s precision structure business and related personnel have been stripped, and CNC machine tools are the only core business.
High end machine tools are gradually launched, and downstream applications continue to expand. The company’s horizontal machining center, lathe, gantry and other machine tool products have achieved mass sales. At the same time, the high-end machine tools represented by the five axis vertical machining center have been developed and are about to be delivered. The company’s strategy of developing high-end machine tools is steadily advancing. At present, the company has successfully entered the general manufacturing industry from the 3C industry, which is widely used in the downstream. At the same time, the company will continue to make efforts in the new energy industry. In the period of rapid development of new energy vehicles, wind power generation and other industries, the company is expected to achieve a rapid breakthrough.
Profit forecast and investment rating: we predict that the net profit from 2021 to 2023 will be 501 million yuan, 893 million yuan and 1.171 billion yuan respectively, and the corresponding EPS will be 0.32 yuan / share, 0.58 yuan / share and 0.76 yuan / share respectively, corresponding to 38 times, 21 times and 16 times of the current share price PE respectively. Maintain the company’s “buy” rating.
Risk factors: market competition intensifies risk; The sustainability of downstream demand is less than expected; The release of the company’s production capacity is less than expected; Raw material price fluctuation risk.
