\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 100 Jiangsu Hengli Hydraulic Co.Ltd(601100) )
Event: on March 7, the company released the performance express of 2021. In 2021, the company achieved a revenue of 9.309 billion yuan, a year-on-year increase of 18.51%; The net profit attributable to the parent company was 2.694 billion yuan, a year-on-year increase of 19.52%; The net profit attributable to the parent company after non deduction was 2.559 billion yuan, a year-on-year increase of 16.79%.
The operating performance in 2021 is still strong, and the profitability is still in line with the expectations.
(1) in 2021, the company’s operating performance grew steadily, basically in line with expectations. In 2021, the company’s revenue increased by 18.51% year-on-year, the net profit attributable to the parent increased by 19.52% year-on-year, and the net profit attributable to the parent after deduction increased by 16.79% year-on-year. In the fourth quarter, the company achieved a revenue of 2.126 billion yuan, a year-on-year decrease of 16.03%; The net profit attributable to the parent company was 708 million yuan, a year-on-year decrease of 9.46%. In 2021, the company’s non-standard oil cylinder and hydraulic pump valve business maintained rapid growth, and the overall operating performance remained stable. In the fourth quarter, affected by the continuous decline of downstream excavator sales, the company’s single quarter performance fell.
(2) the profitability of the company is still strong. In 2021, the company’s net interest rate was 28.94%, an increase of 0.24 percentage points year-on-year; In the fourth quarter, the net interest rate was 33.30%, an increase of 2.42 percentage points year-on-year. In the first three quarters of 2021, the company’s gross profit margin was 42.00%, a year-on-year decrease of 0.25 percentage points. In the context of the sharp rise in the prices of raw materials such as steel, the gross profit margin of the company is basically the same year-on-year, the net profit margin continues to improve, and the overall profitability is still strong.
The business of non-standard oil cylinder, pump and valve continues to be large-scale, creating a leader in anti cycle hydraulic parts.
(1) the company’s non-standard oil cylinder and pump valve business continues to increase in volume. According to the company’s announcement, in 2021, the company’s revenue from excavator oil cylinder products increased by 12%, non-standard oil cylinder products increased by 24% and hydraulic pump valve products increased by 38%. Affected by the continuous decline of excavator sales, the revenue growth of excavator cylinder products of the company slowed down; However, non-standard oil cylinder and hydraulic pump valve products still maintain rapid growth. The company’s business scale in the field of aerial work platform, pump truck and crane in non excavation sector continues to expand; V30g series industrial pumps suitable for marine engineering, shield machine, test bench and other fields, as well as proportional solenoid valves applied in many fields, have also been trial installed in small quantities. The expansion of the company in the non excavation field will gradually smooth the impact of the cyclical fluctuation of the excavator business.
(2) the fixed increase of the company has been approved by the CSRC, and the product system has been gradually improved. In September 2021, the company plans to raise no more than 5 billion yuan, and will invest in Hengli Mexico project, linear drive project, Hengli international R & D center project, general hydraulic pump technical transformation project, super heavy oil cylinder project, etc; At present, the application for fixed increase has been approved by the CSRC. After the implementation of the fixed increase project, the company will continue to expand in the field of ball screw electric cylinder, general pump and super heavy oil cylinder. The company’s product system is expected to be further improved and open up room for growth in the future. The company is expected to go through the cycle of traditional construction machinery and become a leader in the field of general hydraulic.
Maintain the “overweight” rating. In 2021, the company’s business performance grew steadily, and the non-standard oil cylinder and pump valve business continued to increase in volume. However, due to the cyclical fluctuation of the downstream excavator industry, the company’s Excavator cylinder business is still under pressure; We lowered the company’s profit forecast and estimated that the net profit attributable to the parent company from 2021 to 2023 would be RMB 2694 million, RMB 2957 million and RMB 3322 million respectively (the previous values were RMB 2717 million, RMB 3273 million and RMB 3850 million respectively), and the corresponding PE would be 29.97, 27.30 and 24.31 times respectively, maintaining the “overweight” rating.
Risk tip: the downward pressure on the macro economy is increasing, the price of raw materials fluctuates sharply, the construction machinery industry fluctuates periodically, the market competition intensifies, and the overseas expansion is less than expected.
