\u3000\u3 China Vanke Co.Ltd(000002) 139 Shenzhen Topband Co.Ltd(002139) )
Event: Shenzhen Topband Co.Ltd(002139) released the annual report of 2021. In 2021, the company achieved a revenue of 7.767 billion yuan, a year-on-year increase of 39.69%; The net profit attributable to the parent company was 565 million yuan, a year-on-year increase of 6.16%; The net profit deducted from non parent company was 432 million yuan, with a year-on-year increase of 13.28%.
Comments:
The revenue growth exceeded expectations, and the business of each sector maintained high growth: the tool sector became the largest business sector of the company in 2021, with a sales revenue of 2.994 billion, a year-on-year increase of 43.36%. According to the company’s annual report, the company has entered the supply system of multiple head customers, and its market share has increased steadily. The main driving force for the growth of this sector is the continuous expansion of application scenarios, the opening of incremental markets, the upgrading of technology in the stock market, and the realization of lithium electrification and cordless. In 2021, the home appliance sector achieved a sales revenue of 2.959 billion, a year-on-year increase of 37.36%. The main reason is that the development of key customers is progressing smoothly, and the number and volume of customers are increasing. The new energy sector achieved a sales revenue of 1.241 billion in 2021, with a year-on-year increase of 38.86%, which has become the third growth curve of the company, mainly focusing on energy storage, green travel and other fields. We believe that the sector is expected to continue its high growth trend in the future.
Short term profit is under pressure, and the profit level is expected to gradually recover: in 2021, the price rise and shortage of raw materials have a certain impact on the gross profit margin. The gross profit margin of the company is 21.28%, down 3.11pct year-on-year. Due to the excessive increase of some raw materials and serious supply shortage, the company’s material cost reduction and manufacturing efficiency improvement work did not reach the objectives set at the beginning of the year, and some orders for high price transfer appeared in the second half of 2021, which did not significantly transmit to the downstream and new products, which had a certain impact on the company’s operating profits in the short term. We believe that with the gradual decline of raw material prices in the future, profitability is expected to gradually recover.
Continue to promote the “four electricity and one network”, and the third growth curve ensures the long-term growth of the company: the new energy business of the company’s third growth curve is mainly oriented to the two application fields of energy storage and green travel. It provides energy storage for communication base stations, household energy storage, two or three wheeled vehicles, other special vehicles, new energy vehicles, Internet of things and other fields, including inverters, batteries, battery management systems, battery packs, power change cabinets, packs Motor control and other products and system solutions. According to the company’s annual report, the operating revenue of household energy storage and portable energy storage has doubled in 2021, and it is expected to continue the high growth trend in 2022. Household energy storage mainly provides lithium battery products for overseas household energy storage, RV and yacht electrical power supply and other subdivided fields, and portable energy storage mainly provides inverter products for Chinese head customers.
Profit forecast, valuation and rating: the cost of raw materials of the company continues to be under pressure. We lowered the net profit forecast of the company from 2022 to 2023 to 699 / 878 million yuan, a decrease of 7.66% / 7.77% compared with the previous time. The net profit forecast of the new company in 2024 is 1.085 billion yuan, corresponding to pe20 / 16 / 13X. We are optimistic about the development prospect of the company as a leading enterprise in intelligent control and maintain the “buy” rating.
Risk warning: the risk of gross profit margin decline; The downstream market demand is lower than expected; The risk of recurrence and aggravation of the epidemic.
