\u3000\u3 Shengda Resources Co.Ltd(000603) 657 Jinhua Chunguang Technology Co.Ltd(603657) )
Event: according to the company's 21-year performance express, in 2021, the company achieved a total operating revenue of 1.294 billion yuan, a year-on-year increase of + 51.58%, and a net profit attributable to shareholders of listed companies of 110 million yuan, a year-on-year increase of - 22.66%. Among them, 21q4 achieved a revenue of 433 million yuan, a year-on-year increase of + 45.9%, and a net profit attributable to the parent company of 21 million yuan, a year-on-year increase of - 57.7%.
The volume of complete machine business increases, and the cost and provision increase affect the profit level
In the 21st year, the company achieved high revenue growth, which was mainly due to the increase of orders for the whole machine OEM business of the company's vacuum cleaner and the increase of sales revenue of the whole machine OEM business. The significant decline in performance was mainly due to the rise in the purchase price of raw materials, the increase in R & D expenditure and personnel wages. In addition, the company acquired a new subsidiary of Suzhou shangteng in 21 years to carry out the whole machine OEM business. In 2021, the audit revenue of Suzhou shangteng was 333 million yuan, the net profit was -7.848 million yuan, and the total accrued expenses were -10.072 million yuan (asset impairment + credit impairment). If the accrued expenses are restored, the net profit of shangteng is 2.224 million yuan, and the net profit attributable to the parent company is 120 million yuan, a year-on-year increase of - 15.6%. In addition, we expect that since the company has factories overseas and needs to bear the freight, the cost of sea freight may also be partially affected.
It is planned to fully acquire shangteng shares and expand the plant to ensure the production scale
The company also issued an announcement on the acquisition of 45% equity and related party transactions of Suzhou shangteng Technology Manufacturing Co., Ltd., a holding subsidiary, and plans to acquire 45% equity of Suzhou shangteng, a holding subsidiary, with its own capital of RMB 115 million. If the shareholding ratio of Suzhou shangteng held by the company will increase from 55% to 100% after the completion of this equity acquisition, the scope of the company's consolidated statements will not change due to this equity acquisition. At the same time, according to the supplementary agreement signed by the trading parties, the trading parties have agreed that the assessed profit value of Suzhou shangteng in the first quarter of 2022 (January March), the half year of 2022 (January June), the first three quarters of 2022 (January September) and the year of 2022 (January December) is the prerequisite for the payment of partial share rights, that is, the assessed profit in the first quarter of 2022 reaches RMB 4.26 million; The semi annual assessment profit in 2022 reached 10.65 million yuan; The assessment profit in the first three quarters of 2022 reached RMB 18.105 million; The assessment profit in 2022 reached 25.56 million yuan. If any precondition for payment is not fulfilled, the overall valuation of the target company will be 10 times of Suzhou shangteng's assessment profit in 2022, and the purchase price of the target company will be finally determined according to 45% of the overall valuation.
Since the newly-built plant area of Suzhou Teng is changed to 23793 square meters from February 31, 2024, the main construction period of Suzhou Teng is expanded to February 31, 2024. Tang longfu, 45% shareholder of Suzhou shangteng, has no intention to make additional investment in Suzhou shangteng. Therefore, the company changed the acquisition plan for the remaining 45% equity. Suzhou shangteng is mainly engaged in the R & D, production and sales of hand-held vacuum cleaners, floor washers, floor sweepers Siasun Robot&Automation Co.Ltd(300024) , cloth cleaners and other cleaning appliances. The main high-quality customers include Beijing Shunzao Technology Co., Ltd., zhuimi Technology (Suzhou) Co., Ltd., Suzhou simple Youwei Technology Co., Ltd., Hunan Anke Electronic Technology Co., Ltd., Jiangsu Midea cleaning appliance Co., Ltd., etc.
Investment suggestion: the company's disclosure of the acquisition plan fully shows its attention to the whole machine business and confidence in growth. The company binds multiple core customers, and the future order volume is guaranteed. At the same time, the company actively expands the scale of production capacity to ensure sufficient production capacity to meet the flexible order demand of customers. According to the company's performance express for 21 years, based on the increase in plastic prices since the beginning of this year, we appropriately reduced the gross profit margin of hoses and accessories. We expect the net profit of the company from 2021 to 2023 to be RMB 110 / 170 / 230 million respectively (the previous value was RMB 150 / 2.2 / 290 million); The corresponding dynamic valuations are 20.9x, 13.3x and 10.1x respectively. Maintain the "buy" rating.
Risk warning: raw material price fluctuation risk; Market competition risk; Risk of substitute products; exchange-rate risks; The OEM penetration rate is lower than expected. The data of the performance express is the preliminary accounting data, and the specific data shall be subject to the data disclosed in the company's 2021 annual report
