\u3000\u3000 Jade Bird Fire Co.Ltd(002960) (002960)
It is planned to invest 1.3 billion yuan in Ma’anshan to build Qingniao safety industrial park to fill the capacity gap in the Yangtze River Delta
Company announcement: it plans to invest 1.3 billion yuan in Anhui Ma’anshan to build the phase I project of Qingniao Safety Industrial Park (fixed asset investment of 1 billion yuan, covering an area of 140 mu), which is mainly used for the R & D, production and operation of automatic fire alarm system products, fire emergency lighting and intelligent evacuation products, gas detection products, etc.
After the completion of Qingniao Safety Industrial Park, with its superior geographical location, it can fill the capacity gap in the “Yangtze River Delta“, and will form the company’s four capacity bases together with Beijing Tianjin Hebei base (Zhuolu, Hebei), southwest base (Mianyang, Sichuan) and Pearl River Delta base (Zhongshan), radiating the whole country and escorting the company’s sustainable growth.
The internal and external two wheel drive of general fire service is expected to increase China’s market share by 3PCT in 2021
In 2021, Qingniao brand and Jiuyuan brand in the field of general fire protection achieved rapid growth compared with the same period last year; According to our calculation, the market share of general fire fighting companies in China has increased from 10% in 2020 to 13%. Main reasons: 1) the clearing speed of the industry exceeded expectations, and the market share accelerated to the leading concentration; 2) The whole industry is facing a shortage of chips, and the company’s self-developed chips ensure delivery; Overseas has formed a multi brand matrix of Canada’s “maplearmor” + France’s “finsecur” + Spain’s “detnov” + America’s “MPOWER”, with steady progress in internationalization.
Emergency lighting and intelligent evacuation business increased by more than 200% year-on-year, and left-hand lighting contributed part of the growth
In 2021, the orders and shipments of emergency lighting and intelligent evacuation business continued to grow explosively, and the revenue increased by more than 200% year-on-year,; Left lighting contributed some growth after consolidation in the fourth quarter; Emergency lighting and evacuation have formed multi brand matrices such as ” Jade Bird Fire Co.Ltd(002960) “, “left lighting” and “Zhongke Zhichuang”.
Industrial fire protection has achieved breakthroughs in the fields of iron and steel, petrochemical, metallurgy and rail transit; Energy storage fire protection obtains orders
The company has achieved 0-1 breakthroughs in industrial fire protection fields such as steel, petrochemical, metallurgy and rail transit; At the same time, we have continued to promote the application of automatic fire alarm and gas fire extinguishing products in energy storage power stations. We have won the bid for energy storage container gas fire extinguishing system project, an energy storage substation project in Texas, USA, Huagong intelligent energy storage sample box and other projects.
The strategy of “Troika + two new stars” will blossom at many points, and the revenue target of 5 billion yuan is expected to be achieved ahead of schedule
The “troika” with general fire alarm (including overseas), emergency lighting and intelligent evacuation and industrial fire fighting as the core, and the “3 + 2” business framework of “two new stars” with intelligent fire fighting and household fire fighting as the core have been established. As the market share of general fire has increased to 13% in 2021, which is higher than our expectation. It is expected to strive to achieve a revenue target of more than 5 billion yuan by 2023, which is expected to be achieved ahead of schedule.
Profit forecast and valuation
It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be RMB 520 / 650 / 800 million, with a year-on-year increase of 21% / 25% / 22% and PE of 27 / 22 / 18 times. We are optimistic about the continuous improvement of the company’s market share in the civil market, the strength of import substitution in the industrial market and the development potential of energy storage fire fighting and intelligent fire fighting. Maintain the “buy” rating.
Risk tips: 1) gross profit margin declines due to intensified industry competition; 2) Higher receivables may lead to bad debts
