\u3000\u3 Shengda Resources Co.Ltd(000603) 966 Eurocrane (China) Co.Ltd(603966) )
Events
The company issued a performance express. The company’s operating revenue in 2021 was 1.59 billion yuan, a year-on-year increase of 26.2%; The net profit attributable to the parent company was 186 million yuan, a year-on-year increase of 20.1%; Deducting the net profit not attributable to the parent company of 154 million yuan, a year-on-year increase of 19.5%; Roe was 15.2%, with a year-on-year increase of 1.06pct. The parent company announced a year-on-year increase of RMB 219.6 million, with a year-on-year increase of net profit of RMB 219.6% – 20.53% in the first quarter; Net profit deducted from non parent company was 13.14-14.19 million yuan, with a year-on-year increase of 25% – 35%.
Key investment points
Under “carbon neutralization”, the advantages of European crane appear
The company’s European crane has the characteristics of light weight, small net height of equipment, large working range and less maintenance. The company’s crane adopts modular design and brand key components, which greatly improves the fault free working time of the crane, increases the replacement cycle of vulnerable parts, and greatly reduces the overall operation and maintenance cost of the crane. On the other hand, the company provides the best solution according to the needs of customers. Compared with the traditional Soviet crane, the energy consumption of European crane is reduced by more than 30% under the condition of the same lifting capacity, the same span and the same working level. Under the background of “carbon neutralization”, downstream customers pay more attention to energy conservation and product quality, and the advantages of European crane appear. The demand of crane market is closely related to the capital development of downstream manufacturing industry. The expected strength of fiscal and monetary policies will accelerate the upward turning point of manufacturing boom recovery. As the leader of domestic high-end cranes, the company will maintain the continuous share increase and import substitution trend of high-end market under the background of industrial upgrading of China’s manufacturing industry.
Pay attention to research and development, make efforts to be intelligent, and create a small giant in material handling
The company is positioned as a leader in the global material handling industry and strives to build Eurocrane (China) Co.Ltd(603966) European crane brand, Novell electric hoist brand, Guodian Dali crane brand and voithcrane crane brand. The company’s endogenous extension focuses on the field of material handling. In 2021, the revenue of material handling equipment and services accounted for 83%, and various product lines formed significant synergy. In addition, the company has continued to increase R & D investment in recent years to build an automatic and intelligent crane market. The R & D expense rates in the first three quarters of recent three years were 2.11% / 4.16% / 5.07% respectively, maintaining an upward trend. Driven by R & D and innovation, the company’s high-end automatic crane has made breakthroughs in new subdivided fields such as wine making. With the deepening and excavation of subdivided industries and the increase of the company’s R & D investment, the company is expected to continue to lead the industry.
Profit forecast
It is predicted that the company’s revenue from 2022 to 2023 will be 1.96 billion yuan and 2.39 billion yuan respectively, and its net profit will be 239 million yuan and 307 million yuan respectively. The current share price corresponding to PE is 10 and 8 times respectively. Considering the company’s leading position in the field of material handling, it will be covered for the first time and given a “recommended” rating.
Risk tips
The risk of falling profits due to the rise of raw material prices; Market fluctuation risk caused by macro cycle; Exchange rate risk caused by developing international business; The progress of putting new products into the market is less than expected.
