\u3000\u3 Shengda Resources Co.Ltd(000603) 303 Hengdian Group Tospo Lighting Co.Ltd(603303) )
Hengdian Group Tospo Lighting Co.Ltd(603303) in 2021, the company achieved revenue of 5.273 billion yuan, yoy + 16.98%; The net profit attributable to the parent company was 328 million yuan, yoy-4.21%; The net profit deducted from non parent company was 233 million yuan, yoy-11.17%. 21q4 achieved a total revenue of 1.566 billion yuan, yoy + 24.28%; The net profit attributable to the parent company is 44 million yuan, yoy-17.97%; Deduct non attributable net profit of RMB 22 million, yoy-31.31%. Excluding the impact of splitting engineering plastics and Shanghai liangqin, the revenue of the same caliber is + 28.3%, and the net profit is + 10.5%.
Key points supporting rating
The export of LED lighting products increased significantly, and the company’s overall revenue met expectations, including the stable growth of vehicle business. According to the company’s financial report, the company achieved overseas revenue of 4.108 billion yuan in 2021, a year-on-year increase of + 31.17%, accounting for 77.90% of the revenue, and the overseas revenue exceeded the expectation; Part of China’s revenue reached 1.157 billion yuan, a year-on-year increase of – 15.61%; Overall, the company’s revenue in 2021 is in line with expectations. The company’s future strategic direction: expand civil lighting, strengthen commercial lighting and do special vehicle carrying business. The company acquired teyoushi in 2018 and entered the field of commercial super lighting. During the reporting period, the fields of industry, road, education, commerce and special lighting developed rapidly. In 2021, the revenue of vehicle business was 281 million yuan. At the same time, the company has professional R & D, supply chain, manufacturing and marketing teams, and has established good cooperative relations with Panasonic, Wanxiang, Zero run, Haila and other companies. In terms of orders, the orders for fixed-point projects of on-board controller and vehicle lighting projects are expected to accumulate about 3 billion yuan.
The gross profit margin declined due to the impact of raw materials. In 2021, the gross profit margin of the company was 13.75%. In terms of the revenue structure of the split company, the gross profit margin of overseas revenue decreased rapidly, and the gross profit margin of overseas part was 12.93%, a decrease of 6.67pct compared with the same period; China’s gross profit margin was 16.4%, down 1.18 PCT compared with the same period. The instability of shipping logistics and the sharp fluctuation of raw materials have a significant impact on the company’s gross profit margin. In the future, the company can transfer the cost side pressure through price increase, and the gross profit margin is expected to improve marginally.
Valuation
Affected by the rise of raw materials, the gross profit margin of the company in 2021q4 decreased by 4.43pct month on month. The conflict between Russia and Ukraine led to the continuous fluctuation of raw materials. Combined with the recent maritime logistics situation, the net profit of the company from 2022 to 2024 is expected to be 4 / 6 / 800 million, corresponding to PE 16x / 12x / 8x from 2022 to 2024, maintaining the overweight rating.
Main risks of rating
The rising cost of raw materials, the development of the epidemic and the sharp intensification of industrial competition
