\u3000\u30 Shaanxi Zhongtian Rocket Technology Co.Ltd(003009) 79 Huali Industrial Group Company Limited(300979) )
The company released the performance express for 2021. In 2021, the company achieved a revenue of 17.47 billion yuan, a year-on-year increase of 25.40%, and a net profit attributable to the parent company of 2.77 billion yuan, a year-on-year increase of 47.34%, continuing a high growth rate. We are optimistic about the long-term stable growth brought by the landing of the company's production capacity and the improvement of its share, and maintain the buy rating.
Key points supporting rating
The year saw steady progress in customer orders and continued high growth in Q4. In 2021, the company achieved a revenue of 17.47 billion yuan, a year-on-year increase of 25.40% (excluding the impact of exchange rate changes, a year-on-year increase of 34.09%), and the net profit attributable to the parent company was 2.77 billion yuan, a year-on-year increase of 47.34% (excluding the impact of exchange rate changes, a year-on-year increase of 57.55%). Q4 company's production capacity recovered well, and customer orders continued to advance steadily. The revenue in a single quarter was 4.835 billion yuan, a year-on-year increase of 22.57%, continuing the rapid growth in the first three quarters, and the net profit attributable to the parent company was 770 million yuan, a year-on-year increase of 51.57%. In 2021, the company quickly responded to changes in customer demand, developed new products, expanded production capacity and attracted a large number of sports brand orders. The company's revenue from major customers has increased significantly, and the company's orders from new customers ASICs, on and NewBalance have been mass produced and shipped.
In 2021, the company's production capacity increased steadily, the advantages of supply chain were prominent, and the orderly expansion of production in the future could be expected. Under the epidemic situation in Vietnam, the company is located in North Vietnam, which is less affected and the production capacity is relatively stable. In the future, the company's capacity expansion in Vietnam will mainly focus on the further expansion and efficiency improvement of the production lines of Weilin, Yongshan and Hongxin factories. In addition, the company will build new production lines in Indonesia and Myanmar. The new production lines in Indonesia and Myanmar are expected to be gradually put into operation in the second half of 2022 and 2023, and the company's market share is expected to be further improved.
In the future, the leading advantages will be further consolidated, and the company is expected to achieve growth by relying on the growth of key customers. In the post epidemic period, the prosperity of the sports shoes industry is rising, and orders from core customers are expected to further increase. The company relies on IPO to raise funds to open the bottleneck of production capacity. We expect the output of 20212023 to be 207 / 243 / 279 million pairs respectively, with a year-on-year increase of 26.41% / 17.26% / 15.07%. Orders from key customers continue to promote and boost revenue.
Valuation
Considering the strong supply chain advantages and excellent performance of the company under the epidemic, the earnings per share from 2021 to 2023 were raised to 2.37 yuan, 3.03 yuan and 3.74 yuan / share respectively (the original forecast was 2.24 yuan, 2.87 yuan and 3.44 yuan / share); The P / E ratios were 34, 27 and 22 times respectively, maintaining the buy rating.
Main risks of rating
Consumption recovery is less than expected, Vietnam's epidemic control is less than expected, and exchange rate fluctuations are expected.
