\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 82 Longshine Technology Group Co.Ltd(300682) )
Event overview
On March 25, 2022, Longshine Technology Group Co.Ltd(300682) ( Longshine Technology Group Co.Ltd(300682) . SZ) released the annual report for 2021. The company’s annual operating revenue was 4.639 billion yuan, a year-on-year increase of 36.98%. The net profit attributable to shareholders of listed companies was 847 million yuan, a year-on-year increase of 19.77%. The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was 723 million yuan, a year-on-year increase of 23.83%. The basic earnings per share is 0.83 yuan.
Analysis and judgment:
In 2021, the annual revenue increased rapidly and the gross profit margin decreased in the short term due to the high investment in software & operation service business
1. The growth of software services & operation services is in line with expectations, and the decline of gross profit margin is due to the initial high investment. In 2021, the company’s software service revenue was 2.55 billion yuan, a year-on-year increase of + 35%, and the gross profit margin was 46%, a year-on-year increase of -4pct; The operating service revenue was 1.02 billion yuan, up + 23% year-on-year, and the gross profit margin was 62%, up -6pct. Both businesses benefited from the demand stimulation of the energy industry during the 14th Five Year Plan period and entered a rapid growth period. 2021 is the investment period of the company’s power sales platform project and charging pile platform business. Langxin has expanded the scale of business personnel (the total number of employees reached 6020 by 2021, year-on-year + 21%) and business investment. Therefore, the gross profit margin of both businesses has declined. We believe that this decline is the only way to increase investment in the short term, Non sustainability. In addition, the company’s revenue from intelligent terminal business in 2021 was 850 million yuan, a year-on-year increase of + 54%, mainly due to the impact of the epidemic in 2020 on the household installation of the company’s TV boxes. The revenue in 2021 was approximately the same as that in 2019 (890 million yuan).
2. The decline of the company’s net profit margin was synchronized with the decline of gross profit margin, and the rate of R & D expenses increased year-on-year. In 2021, the company’s gross profit margin was 43.43%, with a year-on-year increase of -2.44pct; The net interest rate was 18.15%, with a year-on-year increase of -2.94pct. In 2021, the company’s sales expense rate, management expense rate and R & D expense rate were 6.76%, 7.63% and 12.34% respectively, with a year-on-year increase of -0.16pct, -1.72pct and + 1.61pct respectively. The decrease in the management fee rate is due to the rapid growth of the company’s revenue, a certain scale effect, and the significant increase in R & D expenses, which is due to the investment in the growth of new business.
Energy digital service and charging pile platform will continue to be the development focus of the company in 2022
1. Digital energy services: Longshine Technology Group Co.Ltd(300682) has served the field of electric energy for more than 20 years. At present, there are about 2500 employees in this business, accounting for 42% of the total number of the company. It continues to expand new business opportunities represented by power big data, comprehensive energy services and charging pile operation. It is estimated that the company’s energy digital business will maintain a revenue growth of more than 25% in 2022.
2. Charging pile platform business: by the end of 2021, the “xindiantu” platform has been connected to more than 400 charging operators, and has realized the interconnection with the platforms of head operators such as national home appliance network, China Southern Power Grid, special call, star charging and cloud fast charging. The number of charging piles in operation is more than 320000, the number of new energy charging motor vehicles is more than 2.1 million, and the cumulative charging capacity is more than 630 million kwh. With the rapid growth of charging piles, number of users and charging capacity, it is possible to realize energy operation services such as power purchase and sale, optical storage and charging integration around the aggregation charging scenario, which will form a typical energy Internet platform service scenario and lead the sustainable and high-speed development of the company’s energy Internet business in the future.
3. Photovoltaic cloud platform: at present, more than 15000 photovoltaic power stations have been connected, the installed capacity is nearly 10GW, and the cumulative green power generation is 16.4 billion kwh.
Investment advice
Longshine Technology Group Co.Ltd(300682) has benefited greatly from charging aggregation platform and power grid informatization. Combined with the company’s annual report, we raised the forecast of the company’s revenue of 5.83/7.39 billion yuan in 22-23 years to 5.886/74.34/9.401 billion yuan in 22-24 years, and adjusted the forecast of earnings per share (EPS) of 1.11/1.39 yuan in 21-23 years to 1.39 yuan in 22-24 years 10 / 1.47/1.94 yuan, corresponding to the closing price of 27.78 yuan / share on March 25, 2022, with PE of 25.35/18.95/14.33 times respectively, maintaining the “buy” rating of the company.
Risk tips
1) the risk that the revenue depends on the power industry; 2) The implementation of new energy policy subsidies is less than the expected risk; 3) New energy power generation technology reform process is less than expected risk; 4) Information construction is less than expected risk; 5) Macroeconomic downside risks.
