\u3000\u3 Guocheng Mining Co.Ltd(000688) Jinhe Biotechnology Co.Ltd(002688) 002)
Event: on the evening of February 25, the company released the 2021 performance express
In 2021, the company's revenue increased by 14% year-on-year, and the net profit attributable to the parent decreased by 22% year-on-year. The company achieved a revenue of 1.78 billion yuan in 2021, with a year-on-year increase of 14%; The net profit attributable to the parent company was 460 million yuan, a year-on-year decrease of 22%. The decline in profits was mainly due to the company paying 128 million yuan of equity incentive expenses and increasing investment in R & D and sales. In addition to share based payment expenses, the company's R & D, sales and management expenses increased by 57%, 66% and 43% year-on-year respectively.
Regardless of equity incentive fees, the company realized a net profit attributable to the parent company of 580 million yuan in 2021, a year-on-year decrease of 4%. Q4 realized a net profit attributable to the parent company of 160 million yuan in a single quarter, with a year-on-year increase of 10%, the highest level in the same period over the years.
The company's businesses expanded smoothly, and the revenue of non temperature measurement products increased by 41% year-on-year
With the improvement of the epidemic situation, the company's revenue of temperature measurement products decreased by 80% year-on-year in 2021; With the smooth expansion of outdoor, industrial, personal consumption and other businesses, the company's revenue of non temperature measurement products increased by 41% year-on-year, filling the gap caused by the decline of temperature measurement products. We expect that the high growth of the company's businesses in 2022 is expected to continue. In the short term, affected by the change of product structure, the gross profit margin of the company in 2021 was 58.3%, a year-on-year decrease of 4.5 percentage points. In the long run, with the continuous improvement of production capacity and yield, the company's gross profit margin is expected to rise gradually.
Uncooled infrared leader, large volume of special products + expansion of civil products, high growth of CO drive performance
Special fields: the company is a core supplier of non refrigeration products, with a significant market share in gun aiming and small guided weapons, and will benefit from the batch production of relevant models; In addition, with the continuous breakthrough of the company's refrigeration follow-up research models, refrigeration products are expected to further open a new space for the company's special business.
Civil field: the sales revenue of the company's outdoor thermal imager products has doubled for three consecutive years, leading the industry. Relying on the product strength and the cost advantage brought by the whole industrial chain, the company's new market in North America is expected to replicate its past success in the European market, and the outdoor thermal imager business is expected to become an important driving force for the company's performance growth.
It is planned to issue 1.6 billion yuan of convertible bonds to raise funds and expand production, and the competitiveness of the company is expected to be further improved
According to the company's announcement on February 13, the company plans to issue convertible bonds to raise no more than 1.64 billion yuan for the R & D pilot project of infrared thermal imaging machine and intelligent photoelectric sensor. Through this fund-raising and production expansion, the company's market competitiveness in the infrared and photoelectric fields is expected to be further improved.
Profit forecast
The rapid volume of new special products and the continuous expansion of civil products market will jointly drive the high growth of the company's performance. We expect the company's net profit attributable to the parent company from 2022 to 2023 to be RMB 750 million / 1.09 billion respectively, with a year-on-year increase of 64% / 45%, corresponding to 38 / 26 times of PE, maintaining the "buy" rating.
Risk tips:
Special orders are less than expected; Overseas business expansion is less than expected; Infrared technology path changes.
