\u3000\u3000 Guangdong Create Century Intelligent Equipment Group Corporation Limited(300083) (300083)
Event: Guangdong Create Century Intelligent Equipment Group Corporation Limited(300083) released the performance forecast for 2021. It is estimated that the net profit attributable to the shareholders of the listed company is 460-520 million yuan, a year-on-year increase of + 166% – 175%; The net profit attributable to the shareholders of the listed company was 345-385 million, a year-on-year increase of + 145% ~ 150%. In 2021, the company plans to withdraw credit impairment losses, provision for asset impairment 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 shipment of CNC machine tools has increased significantly, and the general machine field comes first: the shipment of CNC machine tools of the company has increased significantly in 2021, and the scale effect and brand effect appear. In the field of 3C consumer electronic drilling machines with traditional advantages, the market share continues to increase, with more than 10000 units shipped in 2021 and more than 80000 units shipped since its establishment. In the field of general-purpose machines, the shipments of vertical machining centers exceeded 10000 units in 2021, with late delivery and first come, consolidating the leading position in the industry; The shipments of horizontal machining centers, gantry and lathes increased significantly, and the increase in the revenue of general machine tools led to the improvement of the company’s consolidation profit margin.
Divestiture of precision structural parts business and focus on the core main business of CNC machine tools: the company has completed the divestiture of precision structural parts business and will focus on CNC machine tools business in the future. The company continues to increase the R & D investment of high-end CNC machine tools. The five axis vertical machining center has completed the R & D and is about to start delivery. The arrival of the ten-year renewal cycle of machine tools will greatly release the renewal demand, and the business cycle of the industry is expected to be further extended. With the further deepening of domestic substitution in the field of high-end machine tools, the company will fully benefit from the strong demand in the downstream and usher in rapid growth in performance.
Impairment affects short-term performance and profitability continues to improve: the company plans to withdraw credit impairment loss, asset impairment provision and write off assets in 2021, reducing net profit by about 216 million yuan. In the long run, the company has completed the stripping of non core business, and the development of the core main business of CNC machine tools has entered the fast lane; At the same time, deepen the implementation of supply chain management and control, lean production and intensive cost management measures, and the profitability will continue to improve in the future. With the completion and operation of the company’s production capacity base, it is expected to further expand its competitive advantage and enhance its market share.
Investment suggestion: it is estimated that the net profit attributable to the parent company from 2021 to 2023 will be RMB 5.1/9.1/1.24 billion respectively, and the corresponding PE of the current stock price is 37 / 21 / 15 times. Strong downstream demand, high shipments of the company’s products, significant advantages in scale effect and brand effect, and maintained the “overweight” rating.
Risk warning: the risk that the downstream demand is less than expected; The risk of intensified market competition; The risk that the capacity release is less than expected; Risk of price fluctuation of raw materials.
