\u3000\u3 China Vanke Co.Ltd(000002) 011 Zhejiang Dun’An Artificial Environment Co.Ltd(002011) )
Event:
On February 25, 2022, Zhejiang Dun’An Artificial Environment Co.Ltd(002011) released the annual performance express of 2021. In 2021, the company realized an operating revenue of 9.849 billion yuan (+ 33.44%); The net profit attributable to the parent company is 408 million yuan (+ 140.80%), and the net profit not attributable to the parent company is 388 million yuan (+ 474.88%).
Key investment points:
2021q4 performance turned loss into profit, with a bright growth rate. In 2021q4, the company achieved a revenue of 2.475 billion yuan (+ 13.90%) and a net profit attributable to the parent company of 66 million yuan (+ 108.11%). (1) Revenue side: the sales volume of main valve products increased significantly, superimposed with the optimization of product structure, promoting the steady growth of revenue. (2) Profit side: the company has completed the stripping of loss making businesses such as energy-saving sector and sensors, and its profitability has been greatly improved.
The company actively expanded its commercial refrigeration business, and the revenue of new energy heat management business increased rapidly. 1) Refrigeration equipment: the company continues to expand its commercial refrigeration business, including commercial central air conditioning, special air conditioning and cold chain system. It successfully won the bid for the Hangzhou Airport Express Line Project in January 2021 and is expected to be delivered in May 2022. 2) Refrigeration accessories: the company’s products have been optimized and upgraded, and the air conditioning valves have returned to the top of the domestic market, accounting for 39.20% in 2021h1; The thermal management business of new energy vehicles benefits from the company’s technical advantages and perfect product structure, and the revenue increases rapidly.
As the domestic leader of refrigeration valve body, the company’s performance is beautiful. It is covered for the first time and is rated as “buy”. With the upgrading of variable frequency air conditioners and the expansion of the demand for thermal management of new energy vehicles, the company, as a domestic leader, is expected to share the expansion bonus of the valve body market by virtue of its advantages in scale effect and technical competition, cover it for the first time and give a “buy” rating. We predict that the net profit attributable to the parent company from 2021 to 2023 will be 408 / 574 / 740 million yuan, corresponding to EPS of 0.45/0.63/0.81 yuan, and the current share price corresponding to PE of 25.75/18.31/14.20 times.
Risk tips: repeated covid-19 epidemic, cyclical fluctuations in the refrigeration industry, less than expected expansion of overseas markets, exchange rate fluctuations, less than expected implementation of financial debt settlement plan, etc.
