\u3000\u3000 Wuxi Paike New Materials Technology Co.Ltd(605123) (605123)
Events
Recently, the company released the performance express for 2021, realizing an annual operating revenue of 1.733 billion yuan, a year-on-year increase of 68.65%; The net profit attributable to the parent company was 304 million yuan, a year-on-year increase of 82.59%.
Brief comment
Benefiting from the improvement of the industry boom, the order delivery was good, and the annual growth exceeded expectations
In 2021, the company achieved an operating revenue of 1.733 billion yuan, a year-on-year increase of 68.65%; The net profit attributable to the parent company was 304 million yuan, a year-on-year increase of 82.59%; Net profit deducted from non parent company was 286 million yuan, with a year-on-year increase of 91.14%. The company's annual performance increased more than expected, mainly due to the continuous improvement of the prosperity of aerospace and petrochemical industries, sufficient orders, smooth delivery and orderly capacity expansion.
Steadily improve profitability, increase R & D investment and maintain a leading position in the industry
In terms of profitability, in the first three quarters of 2021, the gross profit margin of the company's sales was 29.15% (+ 0.09pct) and the net profit margin was 16.08% (-0.62pct). The expense rate during the period was 10.24% (+ 0.50PCT), which remained stable. Among them, the sales expense is 23 million yuan (+ 53.83%), and the expense rate is 1.91% (- 0.12pct); The management cost was 43 million yuan (+ 76.19%), which was mainly due to the increase of wages and salaries of introduced talents and business growth; The R & D cost was 55 million yuan (+ 88.34%), and the cost rate was 4.65% (+ 0.62pct), which was mainly due to the company's increased R & D investment in aerospace, new energy and other products. The company has always attached great importance to the research and development of new products, new technologies and new processes. Through years of research and development and accumulation, the company has mastered a number of core technologies such as overall precision rolling technology of special-shaped section rings, special ring rolling technology and super large-diameter ring rolling technology, and has strong product R & D and manufacturing capacity, helping the company maintain its leading position in the industry.
In recent years, the company has participated in the drafting and implementation of 6 standards. The company has won the excellence award of the 21st and 22nd China patent awards, the first prize of scientific and technological progress of China Nonferrous Metals Association, and has been rated as "specialized and new small giant enterprise" by the Ministry of industry and information technology. The company has successively undertaken the national key R & D plan of the Ministry of science and technology, the industrial foundation strengthening project of the Ministry of industry and information technology, the special project of intelligent manufacturing, the capacity-building project of the Bureau of science and industry, the special project of large aircraft materials, the supporting scientific research project of military products, the transformation of scientific and technological achievements in Jiangsu Province, the strategic emerging industry project in Jiangsu Province and other scientific and technological and industrialization projects. The scientific research ability has been generally recognized by the industry.
Continuously explore the market, and the aerospace and nuclear power businesses are expected to further develop
In terms of market development, the company focuses on customer needs. In aviation, in the first half of the year, the company signed long-term agreements with Luo Luo and Ge aviation for 11 and 5 years respectively, covering a variety of best-selling models, and transferred the production of titanium alloy fan casing to the Chinese market for the first time. At the same time, the company seized the opportunity of the growth of aviation demand in China and made a breakthrough in the development of superalloy and titanium alloy products; In terms of aerospace, the company actively responded to national policies and continuously developed a new generation of light alloy materials, especially aluminum lithium alloy and magnesium alloy forgings, focusing on the needs of major equipment such as missiles, launch vehicles and aerospace vehicles, and made breakthroughs, further expanding the aerospace market; In terms of the nuclear power market, while actively carrying out the certification of civil nuclear safety license, the company has strengthened the cooperative research with the Steel Institute and the Atomic Energy Institute. At present, the company's civil nuclear safety license is in the publicity stage. In the future, the company will increase its investment in the research and development of civil nuclear products. In addition, the company also focused on the development of photovoltaic, hydropower and other clean energy fields in the first half of the year to break through technical barriers, Seize market share.
Fund raising projects further improve the company's equipment capacity and consolidate the company's leading position in the industry
Forging equipment and forging process are directly related to the quality, performance and yield of products. Through continuous investment in technological transformation, the company now has more than 7000t forging press, 3600t oil press, 3150T fast forging machine and other presses, more than 0.6m-10m precision CNC ring rolling machines, and more than 400 heating furnaces, heat treatment furnaces, metal cutting equipment, physical and chemical testing equipment, which can process from ordinary carbon steel, stainless steel, alloy steel to high-temperature alloy, titanium alloy, aluminum alloy Magnesium alloy and other materials, ring products can cover all specifications and sizes with an outer diameter of 200 ~ 10000mm and a height of 30 ~ 1600mm. In particular, with the production of 10m ring rolling machine of German Simak in the construction of this raised investment project, the equipment capacity of the company will be further improved and reach the leading level in China. In terms of production process, after years of R & D accumulation, the company has mastered the whole process including design, forging, machining, heat treatment and testing process, especially in the core forging and heat treatment process, through a variety of process technologies such as intermediate billet design, allowance control, precise rolling, material shaping, computer simulation and NC heating, It can realize the accurate control of various parameters of forgings.
Profit forecast and investment suggestion: the aerospace business grows significantly, is optimistic about the medium and long-term performance growth, and maintains the buy rating
The company is a state-level high-tech enterprise and one of the few private enterprises in China that can provide supporting special alloy precision ring forgings for aeroengines, space launch vehicles, missiles, satellites, gas turbines and other high-end equipment. At the same time, the company has entered the supply chain system of China's large groups in the field of aerospace, such as AVIC and Aerospace Hi-Tech Holding Group Co.Ltd(000901) , We are optimistic that the company will continue to improve its business scale. It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be 304 million yuan, 420 million yuan and 549 million yuan respectively, with a year-on-year increase of 82.59%, 38.16% and 30.71% respectively. The corresponding EPS from 2021 to 2023 will be 2.82, 3.89 and 5.08 yuan respectively, corresponding to 45, 33 and 25 times of the current share price PE respectively, maintaining the "buy" rating.
Risk tips
1. Risk of price fluctuation of raw materials; 2. The delivery progress of military products is less than expected
