\u3000\u3 Guocheng Mining Co.Ltd(000688) 777 Zhejiang Supcon Technology Co.Ltd(688777) )
The industry boom is upward and the “buy” rating is maintained
The company is a leader in the field of Intelligent Manufacturing in the process industry and is expected to benefit from the high prosperity of the industry catalyzed by intelligent manufacturing, domestic substitution and “double carbon” policy. We raised our profit forecast and estimated that the operating revenue in 20212023 will be 4.519 billion yuan, 5.740 billion yuan and 7.338 billion yuan (the original forecast value in 20212023 is 4.187 billion yuan, 5.446 billion yuan and 6.971 billion yuan), and the net profit attributable to the parent company will be 578 million yuan, 747 million yuan and 971 million yuan (the original forecast value is 545 million yuan, 700 million yuan and 895 million yuan), EPS is 1.16, 1.50 and 1.95 yuan / share (the original predicted value is 1.10, 1.42 and 1.81 yuan / share), and the corresponding PE of the current stock price is 57.2, 44.2 and 34.0 times, maintaining the “buy” rating.
Event: the company released the performance forecast for the first quarter of 2022
The company released the performance forecast for the first quarter of 2022. The company expects to realize a net profit attributable to the parent company of 46-55 million yuan, with a year-on-year increase of 31.30% – 56.99%; It is expected to realize a net profit of 27.5-33 million yuan, a year-on-year increase of 70.07% – 104.08%, and the performance growth rate is bright.
Intelligent manufacturing leader, achieving high performance growth
On the one hand, the high growth of the company’s performance is due to the high prosperity of the industry, and the increasing demand for high-end automation, digitization, intelligence and greening in the process industry; On the one hand, it benefits from the continuous breakthrough of the company’s technology iteration and customer expansion. The company continued to increase R & D investment, further accumulated product and technical advantages, launched a new generation of control system series products, a new generation of real-time database, intelligent factory platform software and other industrial software products, increased the application scenarios of intelligent factories for downstream customers, and further improved the advantages of automation, digitization and intelligent technology and products in the field of process industry. At the same time, the company has broken through a number of leading customers, the customer coverage of process industry has increased, and the market leading position has been further consolidated and improved.
The policy catalytic industry has a high boom and high growth is expected to continue
The State Council’s action plan for reaching the carbon peak before 2030 proposes to “implement energy conservation and carbon reduction projects in key industries and promote energy conservation and carbon reduction in electric power, iron and steel, non-ferrous metals, building materials, petrochemical and chemical industries”. The “14th five year plan” for the development of software and information technology service industry proposed by the Ministry of industry and information technology to supplement the short board of industrial control software. We believe that the policy is expected to catalyze the high boom of intelligent manufacturing, green manufacturing and domestic substitution, and help the company continue its high performance growth.
Risk tip: the penetration of intelligent manufacturing is less than expected; Localization is less than expected; The company’s R & D was less than expected.
