\u3000\u3 Guocheng Mining Co.Ltd(000688) 777 Zhejiang Supcon Technology Co.Ltd(688777) )
According to the performance express, the revenue in 2021 was + 43.1% year-on-year, and the net profit attributable to the parent company was + 36.5% year-on-year, slightly exceeding our expectations. According to the performance express, the company achieved an operating revenue of 4.519 billion yuan in 2021, an increase of 43.1% at the same time; The net profit attributable to the parent company was 578 million yuan, an increase of 36.5% at the same time, and the performance exceeded the market expectation.
The change of income structure has led to a decline in profit margin. According to the performance express, the gross profit margin in 2021 was 46.00%, down 8.44pct at the same time. According to the performance express, the net interest rate attributable to the parent company in 2021 was 12.79%, down 0.61 PCT at the same time. The decrease in gross profit margin was mainly due to the change of project structure, and the proportion of large projects above ten million level increased significantly. There is still room to improve the gross profit margin management of large projects.
The core business advantages remain unchanged, and the key layout business has entered a period of rapid growth. 1) Industrial automation and control system business, market share continues to expand, and the revenue of the sector has increased significantly. 2) Industrial software and intelligent manufacturing businesses have entered the fast lane of development, with high operating revenue and profits. 3) “S2B platform + 5S store” has been steadily promoted, and customer stickiness has been improved.
The acquisition of 22% equity of Sinopec Yingke may further accelerate the layout and development of 5t strategy. The company announced the acquisition of 22% equity of Sinopec Yingke with 561 million yuan. 1) PCCW has many years of ERP implementation experience and has strong competitiveness in process enterprises. This round of acquisition can improve Zhejiang Supcon Technology Co.Ltd(688777) the ability of business management solutions. 2) Zhejiang Supcon Technology Co.Ltd(688777) 5t strategic layout is gradually improved and development is about to accelerate Zhejiang Supcon Technology Co.Ltd(688777) the combination of automation technology (at) and information technology (it) with process technology (PT), operation management technology (OT) and equipment technology (ET) owned by PCCW will improve the 5T strategic layout of central control and the rapid development of related businesses.
Profit forecast and investment rating: according to the performance express, the performance of industrial software business in 2021 slightly exceeded our expectations. We slightly adjusted the forecast of net profit attributable to the parent company from 2021 to 2023 to 578 million yuan (+ 28 million yuan), 834 million yuan (+ 118 million yuan), 1045 million yuan (+ 160 million yuan), which were + 36.5%, + 44.3% and + 25.3% respectively year-on-year, and EPS were 1.17 yuan, 1.69 yuan and 2.11 yuan respectively, The corresponding current price PE is 66x, 46x and 37x respectively. Considering that Zhejiang Supcon Technology Co.Ltd(688777) is the leader of domestic process automation, new customer expansion + ASP improvement of major projects drive the steady growth of intelligent solutions and the accelerated layout of industrial software, we give the target price of 126.75 yuan, corresponding to 75 times PE in 22 years, maintaining the “buy” rating.
Risk tip: the macro economy is down and the investment is less than expected
