\u3000\u3 Bohai Water Industry Co.Ltd(000605) 123 Wuxi Paike New Materials Technology Co.Ltd(605123) )
Event: the company released its annual report for 2021. From January to December 2021, it realized an operating revenue of 1.733 billion yuan, an increase of 68.65% over the same period of last year; The net profit attributable to shareholders of listed companies was 304 million yuan, an increase of 82.59% over the same period last year; The basic earnings per share was 2.82 yuan, an increase of 52.16% over the same period last year; It is proposed to distribute 2.88 yuan (including tax) to all shareholders for every 10 shares.
Aerospace Forgings grew rapidly and their profitability improved steadily. During the reporting period, the company’s Aerospace Forgings achieved an operating revenue of 716 million yuan, a year-on-year increase of 117.77%. In terms of aviation business, the company has participated in the development of many aviation engines in China and the application research of new materials. At the same time, it has also provided aviation ring forgings and gearbox forgings for international well-known aviation engine manufacturers such as GE and RORO. At present, it has started the first article development of multiple part numbers of RORO and Ge, received some batch production orders, and strengthened the development of Safran group to complete its supplier audit; In terms of aerospace business, the company continued to carry out research and development around the needs of major equipment such as missiles and launch vehicles, successfully passed the supplier review of an Institute of Aerospace Hi-Tech Holding Group Co.Ltd(000901) group, participated in the development and docking of a new generation of manned rocket projects, and laid a foundation for subsequent engineering support. During the reporting period, the gross profit margin of Aerospace Forgings of the company was 46.21%, an increase of 3.87 percentage points over the same period of last year, and the profitability was steadily improved.
The revenue of electric power industry decreased slightly, and the expansion of new energy field accelerated. During the reporting period, the company’s operating income of power forgings was 172 million yuan, a year-on-year decrease of 32.41%, mainly due to the decline of nuclear power business; The operating revenue of petrochemical forgings was 522 million yuan, a year-on-year increase of 96.99%; Other forgings (mainly including ships, machinery and other industries) achieved an operating revenue of 142 million yuan, a year-on-year increase of 57.29%. In the nuclear power market, the company has successfully obtained the civil nuclear safety production license, which has laid a solid foundation for further developing the nuclear power market; In the wind power market, the company has successfully obtained the CE certification of wind power, and will increase efforts to invest in the development of wind power products in the future.
Profit forecast and investment rating: it is estimated that the net profit of the company from 2022 to 2024 will be 364 million yuan, 509 million yuan and 681 million yuan, and the EPS will be 337 million yuan, 472 million yuan and 631 million yuan. The corresponding PE will be 42 times, 30 times and 22 times, giving a “buy” rating.
Risk tip: the growth of aerospace orders is less than expected; The progress of raised investment projects is less than expected.
