\u3000\u3 Guocheng Mining Co.Ltd(000688) 663 Windsun Science Technology Co.Ltd(688663) )
Events
Windsun Science Technology Co.Ltd(688663) released the performance express for 2021, and the revenue and performance increased
Windsun Science Technology Co.Ltd(688663) released the performance express for 2021. The annual operating revenue of the company in 2021 was 943 million yuan, a year-on-year increase of + 11.72%; The net profit attributable to the parent company was 116 million yuan, a year-on-year increase of + 8.78%; The net profit attributable to the parent company after non deduction was 93 million yuan, a year-on-year increase of – 8.50%. The net profit of the parent company was + 63.4 billion yuan in the first quarter, with a year-on-year ratio of + 1.89%; The net profit attributable to the parent company after deducting non profits was 30 million yuan, a month on month increase of – 15.60%.
Brief comment
Svg installation demand is greatly affected by wind and light installation, and continues to explore the industrial frequency conversion market
The company’s main products are static var generator (SVG) and industrial frequency converter, which are used in new energy booster station and industrial energy-saving field respectively. In 2021, China’s wind power and optical power added 102.45gw of installed capacity, with a year-on-year increase of – 14.84%, including 54.88gw of photovoltaic installed capacity, with a year-on-year increase of + 13.86%, which was not higher than expected, mainly due to the rise in the price of raw materials such as silicon; The newly installed capacity of wind power was 47.57gw, a year-on-year increase of – 34.0%, mainly due to the high base caused by rush installation in 2020. In the case of no growth in the total installed capacity of new energy in 2021, the company’s revenue and performance still maintained growth, mainly contributed by frequency converters. The SVG revenue of 2021h1 company was 172 million yuan, a year-on-year increase of – 18.0%; The income of frequency converter was 126 million yuan, a year-on-year increase of + 60.5%. It is estimated that the annual SVG revenue in 2021 is about 470 million yuan, a year-on-year increase of – 15.9%; The income of frequency converter was 343 million yuan, a year-on-year increase of + 79.3%.
The company’s gross profit will be affected by the rise in the price of raw materials
The main raw materials used in the company’s products include transformers, power modules, capacitors, structural parts, water-cooling equipment, shells, etc. the rise in the price of bulk commodities has affected the company’s gross profit to a certain extent. It is estimated that the gross profit margin of the company’s sales in 2021 will be about 31.0%, down 1.5pct from 2020.
The energy storage business grew rapidly, opening the second growth curve
The high-pressure PCs developed with the company’s listed funds has been sold. The revenue in 2021h1 is about 6 million yuan, and the demand for orders is strong. The annual revenue is expected to be more than 30 million yuan, which is expected to double in 2022.
Give the company an “overweight” rating
We expect the company’s net profit attributable to the parent company from 2021 to 2023 to be RMB 116 million, 140 million and 175 million, with PE of 44, 37 and 29 times respectively, which is rated as “overweight”.
Risk tips
The installed capacity of wind power and photovoltaic is less than expected; The price of raw materials continues to rise; The intensification of market competition led to a further decline in gross profit margin.
