\u3000\u3 Shengda Resources Co.Ltd(000603) Leon Technology Co.Ltd(300603) 300)
Event:
The company issued the 2021 annual performance express. During the reporting period, the company is expected to achieve an operating revenue of 2.65 billion yuan, an increase of 74% (higher than our previous expectation); The net profit attributable to the parent company was 486 million yuan, an increase of 50% (in line with our previous expectations); The net profit deducted from non parent company was 452 million yuan, an increase of 71% at the same time. Accordingly, 21q4 company realized an operating revenue of about 857 million yuan, an increase of 63% at the same time; The net profit attributable to the parent company was 155 million yuan, an increase of – 6% at the same time; The net profit attributable to the parent company after deducting non profits was 141 million yuan, an increase of 10% at the same time.
Comments:
Revenue growth exceeded expectations and equipment scale increased rapidly: the company’s revenue in 2021 reached 2.65 billion yuan, about 15% higher than our previous forecast, mainly due to the accelerated expansion of its aerial work platform business scale. The number of aerial work platforms in China is still far lower than that in the North American market, and there is a large space for the development of the industry. Aerial work platform is an important flow entrance for leasing in the field of construction equipment in the future, and has long-term strategic value. During the reporting period, the company’s equipment management scale exceeded 47000 units and the number of outlets nationwide exceeded 150; Among them, the number of 21h2 management equipment increased by 17000 and the number of outlets increased by about 50. Business data show that the development trend of the company has not been affected by the negative public opinion in the early stage. We judge that the year-on-year growth of 21q4 profit slowed down mainly due to: 1) the impact of the high base in the same period of 20 years (the net profit attributable to the parent company in 20q4 was 165 million yuan, and the net profit attributable to the parent company in the whole year of 20 years was only 323 million yuan); 2) Due to the increase in the proportion of income contribution of aerial work platform (the profitability of aerial work platform is slightly lower than that of traditional revolving material leasing, such as steel support, climbing frame, etc.); 3) The profit contribution of financial business (financial leasing business) decreased.
The total assets under management of the company increased by 10.5 billion yuan in the same period due to the rapid expansion of equipment, and the total assets under management increased by 4.3% in the same period; The net asset is about 3.85 billion yuan, and the corresponding asset liability ratio is about 63%, a net increase of about 8pcts compared with 2020. If the subsequent fixed increase of major shareholders is completed, its debt ratio will be reduced to a certain extent. Equipment leasing is a heavy asset industry, and income expansion depends on continuous capital expenditure investment; At this stage, Zhejiang Huatie Emergency Equipment Science & Technology Co.Ltd(603300) is exploring the “asset light” mode to export its marketing system and management system in the form of entrusted management or joint venture, so as to effectively reduce its subsequent capital expenditure pressure, reduce the risk of operating leverage and open its expansion boundary. In 2021, it had a case of “asset light” cooperation with thermal union group; It is expected that its “asset light” model will accelerate in 2022.
Introduce the former senior executives of ant group to strengthen asset light and digital layout: in December 2021, the company introduced Mr. Peng Jiezhong as the president of the company, and Peng Jiezhong was the general manager of the shared travel business department of ant Technology Group Co., Ltd. The introduction of external executives will effectively improve and optimize the corporate governance structure and strengthen digital solutions in the field of equipment leasing. In January 2022, the official account of WeChat showed that it signed an agreement with the ant chain, and formally established a comprehensive partnership to build a tracking trust system. In addition, we will work together with ant chain to explore the asset light operation mode, realize the data link of the whole process of the circulation of leased assets, improve the information credibility of the asset life cycle, ensure the authenticity of the transaction of leased assets, effectively improve the controllability of capital / asset holders to assets, reduce the cost of trust, and improve the efficiency of financing and finance, Help leasing service enterprises transform from asset heavy to asset light mode, and effectively realize the complementarity and progress between asset holders and operators.
The acquisition of minority shareholders’ equity of aluminum formwork and climbing frame company will be fully consolidated in 2022: from November to December 2021, the company announced that it plans to acquire 55% equity of Zhejiang YueShun (acquisition price of 148 million yuan), 49% equity of Hubei rentai (acquisition price of 135 million yuan) and 49% equity of Zhejiang Jitong (acquisition price of 340 million yuan). At the same time, the acquiree promises to use 40% – 50% of its acquisition money to buy the company’s shares, and makes performance commitments, and will realize net profits in 21-23 years respectively: Zhejiang YueShun will not be less than 23 million yuan, 28 million yuan and 33 million yuan; Hubei rentai not less than 23, 27 and 31 million yuan; Zhejiang Jitong shall not be less than RMB 70 million, RMB 76 million and RMB 81 million.
Profit forecast, valuation and rating: we are firmly optimistic about the beta in the field of equipment operating lease, as well as Zhejiang Huatie Emergency Equipment Science & Technology Co.Ltd(603300) ‘s strategic execution and operational efficiency. Asset light mode and digital strategy will enhance the company’s medium and long-term competitiveness and reduce its capital expenditure pressure. Maintain the 21-23 year profit forecast of 486 million yuan, 688 million yuan and 878 million yuan. The current price corresponds to the dynamic P / E ratio of about 16x in 2022, maintaining the “buy” rating.
Risk tip: the rental return rate is lower than expected, the asset impairment risk, and the channel layout is lower than expected.
