\u3000\u3 China Vanke Co.Ltd(000002) 139 Shenzhen Topband Co.Ltd(002139) )
Announcement summary: the company released its annual report for 2021, realizing an operating revenue of 7.767 billion yuan, a year-on-year increase of 39.69%, a net profit attributable to shareholders of listed companies of 565 million yuan, a year-on-year increase of 6.16%, and a net profit attributable to shareholders of listed companies of 432 million yuan after deducting non recurring profits and losses, a year-on-year increase of 13.28%.
The annual revenue exceeded expectations, and the profitability was under pressure in the short term. The net profit attributable to the parent company in Q4 fell to -509500 yuan in a single quarter, which was mainly affected by the centralized provision of bad debt provision, equity incentive expenses and year-end bonus. The provision for asset and credit impairment was about 186 million yuan in the whole year, and the income from changes in the fair value of euribo equity investment increased by 93.347 million yuan. Over the past 21 years, the company has achieved good overall development, steadily increased its market share, exceeded 100 head customers, accounted for more than 80% of its revenue, achieved double growth in quantity and volume, and continuously optimized its structure. In terms of business, the tool sector has become the largest business of the company. During the reporting period, the product categories have been expanded horizontally, and the incremental space is superimposed with the upgrading of lithium electrification and cordless technology in the stock market. The company's dominant position in this field has been continuously consolidated. The five business sectors of tools, household appliances, new energy, industry and intelligent solutions have achieved an average annual growth of 21, with revenue of RMB 2.994 billion / 2.959 billion / 1.241 billion / 295 billion / 221 million respectively, The gross profit margin increased by 43.36% / 37.36% / 38.86% / 14.41% / 60.40% year on year, and the gross profit margin was 22.43% / 19.55% / 21.73% / 30.99% / 14.65% respectively. The overall gross profit margin decreased by 21.28% year on year, with a year-on-year decrease of 3.11pct. It is mainly due to the repeated superposition of global epidemic, rising prices and shortage of raw materials in the second half of the year. It is expected that the subsequent gross profit margin is expected to improve with the gradual normalization of supply market and the promotion of price transmission measures. The overall expenses of the company were well controlled. During the 21 years, the expense rate decreased by 1.97 PCT year-on-year, and the sales / management / R & D / financial expense rate was 2.69% / 3.33% / 5.79% / 0.82% respectively, with a year-on-year change of + 0.3 / + 0.02 / + 0.08 / - 2.36 PCT. the sales expense rate increased slightly due to the influence of customer expansion and organizational change of the company, and the financial expense decreased due to the year-on-year decrease of exchange loss and cash discount. With the weakening of short-term disturbance factors such as costs, expenses and bad debt provision, the company will achieve better performance growth. The company will complete equity incentive during the reporting period. The higher performance assessment conditions reflect the confidence of the company's management in the medium and long-term development of the company.
Continue to expand intelligent applications and increase investment in R & D and production capacity. With the accelerated arrival of intelligent society, the development of the industry has entered the fast lane and will be a long-term process. As the core component of the driving terminal from traditional to intelligent, the application scenario of intelligent controller continues to expand, the value will gradually increase, the downstream demand will still maintain a high prosperity, and the global production capacity of the controller industry will continue to transfer to China and the share will continue to focus on the head, Lay the industry foundation for the company's performance growth. With the "four electricity and one network" technology as the core, the company provides customized solutions for home appliances, tools, new energy, industry, intelligent solutions and other industries. With the industry's unique overall solution ability of "intelligent controller + high-efficiency motor + lithium battery", the company has formed a complete technical platform, covering the intelligent control algorithm, motor control, sensing, human-computer interaction, image recognition Temperature control and other core technologies. The company adheres to innovation driven development. The proportion of R & D has maintained a high proportion of about 7% in recent 10 years. In 21 years, the R & D investment was 560 million yuan, a year-on-year increase of 41.02%, and the proportion of independent and controllable businesses has increased rapidly. In terms of production capacity, Huizhou subsidiary is the main source of production capacity, with stable expansion of production capacity and stable product quality. Ningbo operation base will be put into use in 22 years and gradually release production capacity. Nantong lithium battery industrial park is expected to be put into use in the second half of 22 years. Vietnam Pingyang company (phase I) will contribute 552 million yuan, tongnai company (phase II) will contribute new production capacity in 22 years, and the Indian subsidiary has reached the production capacity target set at the beginning of the year, During the reporting period, the company added overseas operation centers in Germany and North America and manufacturing centers in Romania and Mexico. The company accelerated the international layout, realized agile delivery, increased market share and consolidated its leading position.
Dismantle the listing of subsidiary companies, optimize the business layout, and new energy has become the third growth curve. The company is deeply engaged in the intelligent control industry and actively adjusts the business layout according to the new market opportunities. According to the announcement, the sales of three major subsidiaries, including motion control and automation control products, are RMB 1.9 billion and RMB 2.2 billion respectively, with a net revenue of RMB 3.9 billion / 2.1 billion, and the sales of three major subsidiaries, including motion control and automation control products, are expected to be RMB 1.9 billion / 2.1 billion respectively, While splitting and listing to stimulate the vitality of subsidiaries, it is conducive to the company to better focus on the main business strategy of "four electricity, one network and five industries". During the reporting period, the company adjusted its business division and added new business segments of new energy and intelligent solutions. New energy is oriented to the two application fields of energy storage and green travel, and provides products and system solutions including inverter, cell, BMS, battery pack, power exchange cabinet, pack, motor control and so on. The main application fields of energy storage are household energy storage, portable energy storage, communication power backup and industrial and commercial energy storage, with a revenue of 881 million yuan in 21 years, The year-on-year growth was 37.74%, accounting for 70% of the new energy sector. Green travel is mainly used in new energy vehicles and light power, with a revenue of 360 million yuan in 21 years, a year-on-year increase of 41.66%, accounting for 30% of the new energy sector. The company actively deployed its new energy business and expanded its lithium battery product line. During the reporting period, its subsidiary Tuobang lithium battery acquired 90.48% equity of Ninghui lithium battery, increasing the company's cylindrical battery capacity for the field of light power. The Huizhou No. 2 Industrial Park project plans to use a fixed increase of RMB 737 million to expand the capacity of 1.3gwh lithium battery. Nantong company is newly established to build square aluminum shell batteries, soft pack batteries, large cylindrical batteries and battery pack production lines, The total capacity is 6gwh for cell and 4gwh for pack battery pack. Driven by the dual carbon policy, lithium battery and other new energy have developed rapidly, the demand for energy storage has increased, and the prosperity of new energy vehicles and electric tricycles has improved. The company is expected to quickly open the market and contribute to the increment of performance with the differentiated competitive advantage of customized solutions based on years of technology accumulation and quality assurance.
Investment suggestion: Shenzhen Topband Co.Ltd(002139) is a leading provider of intelligent control solutions in China. Its market share has gradually increased, its revenue growth has exceeded expectations, and the rise of short-term raw material costs and impairment provision affect its performance. It is expected that with the gradual normalization of the supplier side and the elimination of one-time impact, the net profit margin will gradually rise. We expect the net profit of the company from 2022 to 2024 to be 865 million yuan / 1118 million yuan / 1427 million yuan, and EPS to be 0.63 yuan / 0.81 yuan / 1.03 yuan, maintaining the "buy" rating.
Risk warning: the application of intelligent controller in downstream industry is less than the expected risk; Market competition intensifies risks; Exchange rate fluctuation risk; Upstream raw material supply shortage risk
