\u3000\u3000 Guangdong Create Century Intelligent Equipment Group Corporation Limited(300083) (300083)
Event: the company released its 2021 annual report. In 2021, the company achieved a revenue of 5.262 billion yuan, a year-on-year increase of 53.60%, and a net profit attributable to the parent company of 500 million yuan, a year-on-year increase of 171.71%, in line with market expectations.
Comments:
In 2021, the performance increased significantly and the machine tool business developed well. In 2021, Guangdong Create Century Intelligent Equipment Group Corporation Limited(300083) achieved a revenue of 5.262 billion yuan, a year-on-year increase of 53.60%, a net profit attributable to the parent company of 500 million yuan, a year-on-year increase of 171.71%, and a net cash flow from the company’s operating activities of 338 million yuan, a year-on-year increase of 84.63%. In recent years, the overall performance of the company has been affected by the structural parts business, with a loss of 696 million yuan in 2020. At the same time, the structural parts business has been basically stripped off in 2020, and the company has successfully turned losses into profits in 2021. At the same time, the company’s machine tool revenue scale and sales volume also have obvious advantages in China, and the company is developing in a good trend.
The sales volume of general machine tools has doubled again, and high-end machine tools have been gradually launched. Relying on the company’s highly competitive vertical machining centers (V Series), the company shipped more than 10000 general-purpose machine tools in 2021, doubling the sales volume for four consecutive years, and the sales volume of the company’s vertical machining centers ranked first in China. In 2021, the company’s five axis machining center began to go offline in batches, marking the company’s substantive breakthrough in the field of high-end machine tools. At the same time, the company’s gantry machining center, horizontal machining center and CNC lathe have achieved batch sales, which will become an important reserve force for the company’s long-term development.
The product line continues to expand and actively expand the new energy market. While maintaining the competitive advantage in 3C field, the company continues to expand its product line. At present, the products under research and development include moving column gantry series, horizontal processing series, vertical processing series, inclined bed CNC lathe, gantry processing center, profile processing center and drilling processing center. In 2021, the company has 469 R & D personnel, with a year-on-year increase of 12.2%. The company will continue to increase R & D investment and launch a variety of machine tool products in the future. At present, the company has mass produced three models of movable column gantry machine tools, and two models will be launched in June 2022, mainly for new energy market segments.
Non operating projects affect short-term performance and are expected to improve significantly in 2022. In 2021, the company accrued credit impairment loss and asset impairment loss of about 200 million yuan. Meanwhile, the equity incentive expense in the reporting period was as high as 131 million yuan, which had a great impact on the net profit attributable to the parent company. With the further processing of the precision structural parts business, the impact of the company’s impairment will be significantly reduced in 2022. At the same time, the equity incentive fee will also decline sharply, and the actual operating ability of the company will be further reflected.
Profit forecast and investment rating: we expect the net profit from 2022 to 2024 to be 1.045 billion yuan, 1.388 billion yuan and 1.745 billion yuan respectively, and the corresponding EPS are 1.05 yuan / share, 1.40 yuan / share and 1.76 yuan / share respectively, corresponding to 20 times, 15 times and 12 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 company’s new product development is less than expected; Raw material price fluctuation risk.
