\u3000\u3 Guocheng Mining Co.Ltd(000688) 092 Hangzhou Iecho Science & Technology Co.Ltd(688092) )
Event overview
The company issued a performance express, and achieved an operating revenue of 319 million yuan in 2021, with a year-on-year increase of 43.31%; The net profit attributable to the parent company was 54 million yuan, a year-on-year increase of 9.48%; The net profit deducted from non parent company was 47 million yuan, with a year-on-year increase of 7.29%.
Analysis and judgment:
The performance of 21q4 was slightly lower than expected due to short-term factors
Benefiting from the continuous growth of orders and the release of production capacity, the company achieved a revenue of 319 million yuan in 2021, a year-on-year increase of 43.31%; The net profit attributable to the parent company was 54 million yuan, a year-on-year increase of 9.48%. 21q4 achieved an operating revenue of 93 million yuan in a single quarter, an increase of 9.41% month on month and 27.40% year-on-year; 21q4 achieved a net profit attributable to the parent company of 11 million yuan in a single quarter, a month on month decrease of 45.0% and a year-on-year decrease of 38.89%. The company’s performance was lower than expected, mainly due to the rise in raw material prices. The comprehensive gross profit margin in 2021 was 43.95%, down from last year; Secondly, in order to maintain the core competitiveness of products and improve brand awareness and market share, the company’s R & D expenses and sales expenses have increased significantly; In addition, the appreciation of RMB 21q4 also dragged down the company’s performance to a certain extent.
Nonmetal cutting is widely used, and the intelligent penetration rate is expected to be improved.
The downstream applications of the company’s products mainly involve advertising printing, automobile interior decoration, composite materials, home textiles, textile and clothing, office automation, etc. At present, the intelligent level of China’s light industry is 20%, and the NC rate of key processes in the light industry related to the downstream of the intelligent cutting industry is 41.4%, which is at a low level. There is great room for improvement in the demand for intelligent equipment in the future.
The continuous growth of orders and the release of production capacity contributed to the continuous improvement of performance
The company’s production capacity is gradually released, and the problem of production capacity is no longer a constraint on performance growth. We believe that the number of equipment sold by the company is expected to reach 40004500 in 2022, with a significant increase over last year. At the same time, the company has continuously strengthened product R & D, invested a lot of resources, strengthened the grid and professional construction of the sales team, increased the distribution proportion with stronger professionalism, and the market share is expected to further expand. The continuous growth of orders and the release of production capacity contribute to the continuous improvement of the company’s performance.
Investment suggestion: according to the performance express, we lowered the company’s profit forecast for 20212023. The company lowered the revenue forecast of RMB 336 / 503 / 655 million to RMB 319 / 479 / 626 million from 2021 to 2023, the net profit attributable to parent company of RMB 74 / 106 / 135 million from 2021 to 2023 to RMB 54 / 0.84/115 million, and the EPS forecast of RMB 1.25/1.79/2.29 from 2021 to 2023 to RMB 91 / 1.42/194 million. Calculated by the closing price of RMB 32.32 on March 1, 2022, the corresponding PE valuation level is 38 / 24 / 18 times respectively. We maintain the company’s “buy” rating.
Risk warning: fluctuation risk of downstream industry; The risk that the company’s product R & D and marketing are not as expected.
