Ficont Industry (Beijing) Co.Ltd(605305) (605305)
Ficont Industry (Beijing) Co.Ltd(605305) is a leading provider of special high-altitude safety operation equipment and service solutions in China. At this stage, the company's business mainly focuses on the field of wind power, with high growth and high profitability. In terms of profitability, the company's gross profit margin and net profit margin were maintained at 55% / 26% respectively from 2012 to 2020. In terms of growth, in 2012-2020, the company's revenue increased from 57 million yuan to 681 million yuan, CAGR reached 36.22%, and the net profit attributable to the parent company increased from 13 million yuan to 185 million yuan, CAGR reached 39.78%. In the past 10 years, despite the fluctuations in the installed capacity of the wind power industry, the company's performance has never experienced negative growth. We believe that the core reason for the company's beautiful financial data is that product attributes determine the company's high profitability, and market expansion and diversification help the company's high growth.
Four product attributes determine the company's high profit: ① niche: the company's main high-altitude safety lifting equipment and protective equipment are mainly used in special working conditions of wind power. The market space is not large but relatively closed, And for large equipment manufacturers (e.g. elevator factory) is not attractive enough, so there are no more than 10 mainstream suppliers in the industry; ② Customization: in order to achieve the high matching between safety lifting equipment products and wind turbine units, targeted research and development is required, and a large number of project experience needs to be absorbed to accumulate know-how, so the products are easy to make and difficult to do well; ③ high addition: high bargaining power, involving personal safety, downstream to prevent stealing workers Material reduction will not easily lower the price, and customers pay attention to the brand effect and tend to choose the "most secure" brand, so it has brand premium; ④ High return: the unit price of safety lifting equipment is not high, and its proportion in the cost of wind turbine is not high. In 2020, the average unit price of Ficont Industry (Beijing) Co.Ltd(605305) climbing free products is about 20000 yuan, and the average unit price of elevator products is about 43000 yuan, Taking 3MW wind turbine as an example (according to the average monthly bidding price published by cewa, assuming that the bidding price is 2000 yuan / kW), the unit cost is 6 million yuan, and the climbing free device and climbing aid account for about 0.3% and 0.7% of the cost of a single wind turbine respectively, which is not the key consideration for the whole machine factory to reduce the supply chain cost.
Logic helps high growth: ① "price": industrial upgrading. Tower elevator, climbing free device and climbing aid, three sub products of lifting equipment, are iterative. Climbing free device is comprehensively replacing climbing aid. With the trend of large-scale fan and the increase of offshore wind power penetration, tower elevator is gradually favored by the market, thus driving the increase of single set value. ② "Capacity": (1) continuous expansion of downstream wind power installed capacity: it is expected that the annual average new hoisting installed capacity will be at least 50gw from 2021 to 2025. According to GWEC global wind energy report 2021 According to the prediction of the global new installed capacity year by year in the future and the proportion of China's new installed capacity, it is calculated that the total new hoisting installed capacity in China from 2021 to 2025 is 201.7gw. Considering China's role in promoting and upgrading the wind power industry during the 14th Five Year Plan period, the Beijing Declaration on wind energy puts forward that China's annual new hoisting installed capacity is at least 50gw, with a total of at least 250gw, which is expected to further exceed market expectations; (2) Activation of stock market: in terms of lifting equipment alone, we estimate that the technological transformation of old fans will drive the global potential stock market in the next five years, which is equivalent to the scale of new markets, both of which are close to RMB 1 billion; (3) opening of overseas markets: the company has actively explored overseas markets, Indian and American markets have opened up, and the proportion of overseas revenue is expected to increase. ③ "diversified expansion" : (1) wind power field: high altitude safety protection equipment belongs to supply to create demand. The company continues to develop new products (such as offshore cranes, speed differentials, safety guardrails, etc.) and gradually cultivate user habits and expand new growth points. (2) from wind power to other fields, the company has extended and expanded on the basis of wind power field "Wind power + building + power grid tower + storage + Petrochemical + civil emergency escape", and gradually open the growth space.
Investment suggestion: it is estimated that from 2021 to 2023, the company will realize operating revenue of RMB 883 / 1116 / 1342 million, yoy + 29.7% / 26.3% / 20.3%, net profit of RMB 254 / 334 / 411 million, yoy + 34.1% / 34.7% / 23.1%. The company's EPS is 2.31/3.03/3.74 yuan respectively, corresponding to pe39 3/29.9/24.3X。 Give a "overweight-a" rating.
Risk tip: the prosperity of downstream wind power industry is declining; Overseas market development is blocked; Intensified market competition
