\u3000\u3 Guocheng Mining Co.Ltd(000688) 028 Beijing Worldia Diamond Tools Co.Ltd(688028) )
Key investment points
Event: the company released the performance express of 2021. In 2021, the company achieved a revenue of 326 million yuan, a year-on-year increase of 34.7%; The net profit attributable to the parent company was 54 million yuan, with a year-on-year increase of 9.4%. The company's performance maintained growth, lower than our expectation.
Strong downstream demand, orderly release of the company's production capacity and rapid growth of revenue; Expenses increased significantly, and the annual profit growth rate was low. In 2021, the downstream application demand of the company's products is relatively strong, the company's production capacity is gradually released, and the revenue has achieved rapid growth, especially the overseas market has achieved a rapid growth of 51.4%; The company's product and customer structure was further optimized, with a comprehensive gross profit margin of 50.0%, an increase of 2.2 percentage points year-on-year; However, due to the failure to realize large-scale income of new products, the increase of new equity incentive expenses and intermediary expenses caused by major asset restructuring, the expenses increased significantly during the period, with a year-on-year increase of 61.4%. Therefore, the profit growth rate of the company in 2021 is low.
The company is a leading enterprise of superhard cutting tools, expanding the business of cemented carbide and cermet CNC blades, expanding the product series, and plans to acquire xinjinquan to enhance the competitiveness of 3C industry. The company has strong competitiveness and influence in the field of superhard tools, and plans to invest 210 million yuan to build a production capacity of 28 million coated cemented carbide and cermet CNC blades, so as to further improve the company's tool product series and meet the needs of customers; At the same time, the company plans to acquire xinjinquan, a leading cutting tool enterprise in 3C industry, which will further enhance the competitiveness of the company's cutting tools in 3C industry.
Optimistic about the company's diamond business and strong performance contribution ability. Cultivated diamonds have almost the same characteristics as natural diamonds, but they have environmental protection attributes and obvious cost performance advantages. The price is only 1 / 3 of that of natural diamonds. With the gradual improvement of consumers' recognition of cultivated diamonds, their demand is growing rapidly. The gross profit margin of diamond cultivation is more than 60%. The company's diamond cultivation production technology is mature and has high industrial standard process. It plans to build 200000 carat CVD diamond cultivation and diamond functional material production capacity, which will contribute to the incremental performance of the company.
Profit forecast and investment suggestions. It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be 54 million yuan, 113 million yuan and 168 million yuan respectively, and the compound growth rate of the net profit attributable to the parent company in the next three years will be 50.2%. Considering the high growth of the company and the valuation level of comparable companies, the company will be given 35 times PE in 2022, the target price is 49.35 yuan, and maintain the "hold" rating.
Risk tips: economic downside risk, technology R & D failure risk, and the risk that the promotion of diamond cultivation is less than expected.
