\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 72 Zhejiang Windey Co.Ltd(300772) )
The company’s performance and orders increased significantly in 2021 and steadily moved towards the first tier of the industry. On March 7, 2022, the company released its annual report for 2021. The annual operating revenue was 16.041 billion yuan, a year-on-year increase of + 39.75%, and the net profit attributable to the parent company was 490 million yuan, a year-on-year increase of + 183.13%. According to the statistics of the national energy administration, the new installed capacity of onshore wind power in China in 2021 was only 30.7gw, a year-on-year decline of more than 50%, while the company’s fan sales increased by 51% to 5.46gw against the trend, which fully confirmed the rapid increase of the company’s market share. By the end of 2021, the company’s cumulative orders on hand had reached 12.88gw, with 12.80gw of new orders in the whole year, a year-on-year increase of 259%. Abundant orders on hand will provide a good guarantee for the company’s subsequent sales and revenue growth. We believe that the company has ranked among the first echelon of Chinese fan manufacturers.
Profitability rebounded significantly year-on-year, and the cost reduction effect of large-scale units was remarkable. In 2021, the overall gross profit margin / net profit margin of the company was 16.8% / 3.1% respectively, which increased by 8.3% / 1.6% year-on-year after excluding the adjustment of accounting caliber. The net profit per watt converted was about 0.09 yuan / W, significantly higher than 0.05 yuan / W in 2020. In 2021, when the average delivery price of wind turbines decreased significantly, the company still achieved a significant improvement in profitability, mainly due to the cost reduction effect brought by the large-scale unit. In 2021, the sales volume of the company’s models of 3MW and above accounted for about 68%, an increase of 34% compared with that in 2020. By the end of 2021, the company’s orders of models of 4-5mw and above accounted for 31% / 23%. Since 2021, the bidding price of wind turbines in China has continued to decline. However, with the continuous optimization of shipment structure and the further embodiment of scale effect, we expect the profitability of the company to remain at a high level in 2022.
Haifeng, overseas, investment, operation and other businesses have been comprehensively promoted, and the company’s long-term growth space has been opened. While the share of onshore wind turbines in China has increased rapidly, the company has also made great progress in the development of overseas and sea wind markets in 2021, with new overseas orders of more than 500MW, of which the Shuozhuang project in Vietnam is the company’s first offshore batch project. In addition, in 2021, the company signed a new agreement on the development of scenery resources of more than 10GW, of which 1.66gw has been included in the development index of the provincial energy department, and the newly signed smart service business order has exceeded 300 million yuan, more than doubling the growth. In the future, the investment and operation of new energy power stations and smart operation and maintenance business are expected to become an important factor in thickening the company’s performance.
Investment suggestion: we expect the company to achieve operating revenue of 18.9/23.4/28.4 billion yuan and net profit attributable to the parent company of 6.13/7.66/1.029 billion yuan respectively from 2022 to 2024. It is given the “Buy-A” investment rating, with a six-month target price of 40 yuan, corresponding to 22 times the P / E ratio in 2022.
Risk tips: the installed capacity of wind power in China is less than expected, the price of raw materials rises, market competition intensifies, etc
