\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 717 Zhengzhou Coal Mining Machinery Group Co.Ltd(601717) )
Event: on March 28, 2022, the company released its annual report for 2021. During the reporting period, the company achieved a revenue of 29.275 billion yuan, a year-on-year increase of 10.43%, and the net profit attributable to the parent company was 1.948 billion yuan, a year-on-year increase of 57.19%, slightly higher than the previously announced performance express. The company achieved a revenue of 7.299 billion yuan in 2021q4, a year-on-year increase of 0.5% and a month on month increase of 5.7%. The net profit attributable to the parent company in 2021q4 was 371 million yuan, a year-on-year increase of 1322.5% and a month on month decrease of 1.2%.
The coal machinery sector is growing steadily, and the decline in raw material prices is expected to increase the gross profit margin. During the reporting period, the revenue of the company’s coal machinery sector increased by 2.77 billion yuan, an increase of 10.46%, and the net profit decreased by 380 million yuan, a decrease of 15.19%, which was mainly affected by the sharp rise in the price of raw materials such as steel and the intensification of industrial competition. However, as the leader in the field of hydraulic support, the company has obvious technical advantages in the fields of large mining height support and intelligent coal mine. With the decline of raw material prices and the continuous improvement of intelligent penetration rate of coal mines, the gross profit margin of coal machinery sector is expected to gradually recover.
Driven by the new mine + Intelligent coal mine, the hydraulic support faucet is expected to fully benefit. In the current situation of coal shortage, new mines will bring a number of new coal machines. In addition, as a leader in the field of hydraulic support, the company’s revenue from complete sets and intelligent products has achieved steady and rapid growth respectively. Driven by national policies, the intellectualization of coal mines will be the general trend in the future, which is not only conducive to improving production efficiency, but also an important way to achieve safe production. As one of the few enterprises in the field of coal machinery and early layout of intellectualization, the company will fully benefit.
SEG turned losses into profits, and global resource integration helped the auto zero sector reduce costs and increase efficiency. During the reporting period, the net profit of the company’s auto parts sector increased by 967 million yuan over the same period last year. Among them, SEG benefited from the recovery of the global auto market and the emergence of the restructuring effect. After excluding the restructuring expenses, the operating performance turned loss into profit. In October 2020, the company passed the restructuring proposal to integrate resources globally, reduce the operating costs in high-cost regions such as Western Europe by reducing staff, reducing production and outsourcing some businesses, transfer orders to Hungarian factories, restructure SEG’s German headquarters and transfer employees in North America to Mexico. It is expected that the profitability of SEG will continue to improve.
ASIMCO intelligent manufacturing production and capacity expansion projects have been launched one after another to steadily promote the new energy strategy. In 2021, due to the stable demand of China’s commercial vehicle market, the passenger vehicle business was less affected by the lack of core, and the overall revenue increased, realizing a net profit of 370 million yuan, an increase of 1.5% year-on-year over last year. On the one hand, this is due to the fact that the company optimizes its existing business, seizes the first opportunity in the national six upgrading, and successively starts the Shanxi manufacturing park project to build a high-end engine cylinder block and cylinder head casting production line. On the other hand, the company is also constantly exploring and developing the business of noise reduction, vibration reduction and sealing products of new energy vehicles, and has successfully entered the supply chain system of customers such as Xiaopeng, future, Byd Company Limited(002594) , Dongfeng, etc. the sales revenue of new energy directly or indirectly exceeded 77 million yuan in 2021, and it is expected to maintain a stable growth in 2022.
Investment suggestion: it is estimated that the company will realize an operating income of 33.486/38.262/43.853 billion yuan and a net profit attributable to the parent company of 2.470/33.92/4.113 billion yuan in 22-24 years, corresponding to 10 / 7 / 6 times of PE. Considering the scarcity of the company in the field of coal mine intelligence and the continuous improvement of profitability, the “recommended” rating is maintained.
Risk tip: the intellectualization of coal mine is less than expected, the price fluctuation risk of raw materials, and the downward risk of heavy truck industry
