Guangzhou Kdt Machinery Co.Ltd(002833) (002833) tablezw] company research template
event
Guangzhou Jidong, a wholly-owned subsidiary of the company, won the state-owned construction land use right of about 64000 square meters of industrial land in the south of Yongning Avenue, the core area of Zengcheng economic and Technological Development Zone at a transaction price of RMB 51.06 million on December 10, 2021, and signed the transaction confirmation with Guangzhou public Resources Trading Center.
Key investment points
The land auction of the company was launched, and the production expansion plan was further promoted
Guangzhou Jidong is responsible for subsequent land acquisition and parcel development and construction. This transaction will further enhance the production capacity of edge banding machines and other furniture equipment, promote the effective integration of the company’s production plants and production factors, and accelerate the formation of an efficient modern production base. It is conducive to further reduce unnecessary production consumption, optimize the manufacturing process of production lines such as edge banding machine, and meet the requirements of large-scale production and further cost reduction of the company. Increase the production scale of rack and core parts, ensure the independent supply capacity of key parts, gradually reduce the entrusted processing of core parts, improve the quality of key parts, reduce the risk of leakage of core technology, and provide hardware support for manufacturing more high-end furniture and equipment in the future.
This transaction is in line with the company’s strategic development layout and provides a guarantee for the company’s future development. The purchase of land use right is invested with the company’s own funds, which will not have a significant impact on the company’s financial and operating conditions, and there is no situation that damages the interests of the company and all shareholders.
Increase production capacity and market share by putting in production capacity; The overseas market is expected to become a strong growth point in the future
With the smooth ramp up of the company’s production capacity, the order scheduling cycle returns to the normal level. The company’s production capacity can reach about 2.5 billion yuan by the end of the year after the master project is completed; The new phase I plant of Danchi Seiko, a subsidiary, is expected to be completed this year, which will further coordinate and improve production efficiency; Foshan Shunde manufacturing base is expected to be put into operation in 2023, and it is expected to release 2.5 billion incremental capacity after full production; The new land in Zengcheng, Guangdong Province further promotes the expansion of production, and is expected to achieve the market share target in the future.
With the effective control of overseas epidemic, the demand of foreign market resumed growth, and the growth rate of export orders of the company in the first three quarters reached more than 80%. The company’s sales teams in Russia and Ukraine completed a revenue of more than 90 million yuan in the first three quarters, and the annual revenue is expected to exceed 100 million yuan. With the decline of shipping cost, the company actively arranges channels and expands market space in Europe and America, which is expected to become a strong growth point of the company in the future.
Release the draft employee stock ownership plan to demonstrate the company’s confidence in future development
The company issued the employee stock ownership plan for 2021-2022 on November 5, 2021 (Draft), the incentive fund of this share holding plan takes 2021-2022 as the assessment year, which is two independent periods. The lock-in period of the underlying shares obtained by the share holding plan is 12 months and the duration is 24 months. The implementation of this plan aims to establish and improve the benefit sharing mechanism of employees and shareholders, improve the level of corporate governance, mobilize the enthusiasm and creativity of employees and promote the development of the company Long term, sustainable and healthy development.
Profit forecast and valuation
It is estimated that the revenue from 2021 to 2023 will be RMB 2.4 billion, 3.1 billion and 4.0 billion, with a year-on-year increase of 42% / 30% / 28%; The net profit attributable to the parent company was 540, 680 and 870 million yuan, an increase of 52%, 27% and 27%; PE is 19 / 15 / 12 times, maintaining the “buy” rating.
Risk statement
The development trend of new house delivery and hardbound house is less than expected; The investment in fixed assets decreased significantly; Intensified competition in furniture machine tool market; The price of raw materials fluctuates greatly
