\u3000\u3 Jiangsu Eastern Shenghong Co.Ltd(000301) 071 Henan Liliang Diamond Co.Ltd(301071) )
Performance review
The company announced on March 27 that the net profit attributable to the parent company of 1q22 increased by 93 ~ 103 million yuan, 127.89% - 152.40% at the same time; Deduct the net profit not attributable to the parent company of RMB 90 ~ 100 million, with an increase of 128.71% - 154.12%. The performance continued to grow rapidly, mainly for the cultivation of high gross profit products, and the sales proportion of diamond business increased significantly; The market demand for industrial diamond products is strong, the supply is tight, and the price has increased significantly compared with the same period last year; The investment and output of the company increased rapidly.
We believe that the performance of 22q1 has increased by 100% year-on-year + by simply relying on the number of presses. It is estimated that the structural price rise of 22q1 drill is narrower than that of the previous year (mainly less than 3 carats in 20 years and 4 ~ 6 carats in 21 years, with obvious structural price rise).
Business analysis
Looking back on the cultivation of drilling business in the past 21 years, the revenue was 197 million yuan, an increase of 428% at the same time. It is estimated that the sales volume increased by 150% at the same time + and the average price increased by 100%; The reasons for the rise in the average price of further splitting are mainly as follows: 1) the rise in the quotation of wool diamonds of the same grade; 2) Technological progress and higher yield rate of new press drive the proportion of high-grade diamonds to increase and realize structural price rise.
Looking forward to 22 years, the company plans to increase the number of presses to 1000 by the end of the year, and the average monthly installed capacity is expected to be about 35, which is a rapid increase compared with the average installed capacity of 20 in 20 months; It is expected that the new superchargers will be put into production. The price of cultivated drill is expected to benefit more from the structural price rise. At present, the supply is still in short supply, and the quotation level of the same grade is expected to be relatively strong. The price rise of cultivated drill is expected to drive the price rise of industrial drill.
The company plans to increase 12.07 million shares to no more than 35 objects, accounting for 20% of the total share capital, and raise no more than 4 billion yuan for the cultivation of diamond intelligent factory (2.06 billion yuan, including 160 million yuan for equipment purchase and no more than 1600 sets of Press), power phase II Industrial drill and cultivation of diamond intelligent factory (1.6 billion yuan, including 1.37 billion yuan for equipment purchase and no more than 1370 sets of Press), supplement working capital (210 million yuan) Science and Technology Center (130 million yuan). It is estimated that through the fixed increase project, the company will add no more than 3000 presses in the next three years, and the average monthly installed speed will be increased to 80 + sets.
Investment advice
The company seized the opportunity to cultivate the drilling industry, continuously improved the installation speed, seized the industry dividend, and made use of the financing advantages of listed companies to further expand production and consolidate competitiveness. It is estimated that the company's EPS in 22 ~ 24 years will be 8.11/12.56/16.38 yuan respectively, corresponding to 35 times of pe22 years, maintaining the "buy" rating.
Risk tips
The construction of raised investment projects was less than expected, the price of cultivation drill fell, and the cultivation of terminal demand was less than expected.
