\u3000\u3 Shengda Resources Co.Ltd(000603) Leon Technology Co.Ltd(300603) 300)
The high-speed aircraft leasing has a rapid and large-scale volume, and the substantial increase in profit is in line with expectations. The company achieved a strong revenue growth of RMB 2.61 billion in 2021; The net profit attributable to the parent company was 500 million yuan, an increase of 54% at the same time, slightly higher than the previous performance express; The net profit attributable to non parent company was 460 million yuan, and the net profit attributable to parent company increased by 76% after deduction, which was in line with expectations. In terms of business, the revenue of aerial work platform / building support equipment / underground maintenance was RMB 1.09/12.4/250 billion respectively, an increase of 131% / 47% / 36% at the same time; The net profit was 260 / 270 / 70 million yuan respectively, an increase of 159% / 11% / 23% at the same time. Among them, the company’s high-altitude aircraft leasing strategic business has become the main driving force for scale expansion and profit growth. By the end of 2021, the management scale of the company’s high-altitude operation platform exceeded 47000, an increase of 125% at the same time, and the amount of equipment has ranked second in China; The rental rate of aerial work platform reached 86%, and the management efficiency was outstanding. Quarterly, q1-4 company’s single quarter revenue increased by 101% / 64% / 84% / 55% year-on-year respectively; The net profit attributable to the parent company in a single quarter increased by 124% / 144% / 80% / 2% year-on-year respectively. Q4 revenue increased rapidly and the performance growth rate decreased, mainly due to the high Q4 base of the previous year (the performance in a single quarter increased by 2.7 times year-on-year, and there were many offsets of credit impairment). The company plans to distribute a cash dividend of 120 million yuan, accounting for 23% of the net profit attributable to the parent company. Recently, the company predicted that the net profit attributable to the parent company in 2022q1 was 100 million yuan, an increase of 36% at the same time. Under the background of increasing downward pressure on the economy in Q1 this year, the profit continued to grow rapidly, highlighting the good overall demand of the high-speed aircraft leasing industry and the excellent business development ability of the company.
The gross profit margin has decreased, and the expense rate has decreased significantly. In 2021, the company’s gross profit margin was 51.6%, yoy-2.3 PCT, of which the gross profit margin of aerial work platform / building support equipment / underground maintenance changed by + 4.0 / – 6.6 / + 3.6 PCT respectively. The rental rate and price of aerial work platform rebounded, which promoted the steady increase of gross profit margin; The gross profit margin of building support equipment has decreased, which is expected to be mainly due to the change of product structure. Among them, the business scale of aluminum formwork, climbing frame, section steel support and steel surface bridge with relatively low gross profit margin has increased rapidly, and the proportion of subway support business with high gross profit has decreased accordingly. During the period, the expense rate was 23.4%, yoy-4.3 PCT, of which the sales / management / R & D / financial expense rate was yoy-0.3 / – 0.8 / – 0.7 / – 2.6 PCT, of which the decline in the sales and management expense rate is expected to be mainly due to the rapid expansion of the company’s revenue scale and the appearance of economies of scale; The financial expense ratio has decreased significantly, which is expected to be mainly due to the continuous promotion of asset light operation mode and the reduction of financing demand. The impairment loss of assets (including credit) was less accrued by about 80 million yuan, an increase of 120 million yuan over the previous year, mainly due to more impairment reversal in the previous year and normal accrual this year. The income tax rate is 14.3%, yoy-2.9 PCT, which is expected to be mainly due to certain tax incentives for some newly established companies. The net interest rate attributable to the parent company is 19.1%, yoy-2.1 PCT.
Excellent cash flow performance and accelerated turnover promoted the improvement of roe. The net cash inflow from operating activities was 1.11 billion yuan, an increase of 570 million yuan over the previous year, mainly due to 1) the obvious expansion of the company’s revenue scale; 2) A professional collection team and risk control department have been established, which is caused by the continuous strengthening of the collection capacity. Among them, the turnover rate of accounts receivable in the construction support equipment sector has increased by 13 PCT year-on-year, and the collection amount has reached a new high in a single year; 3) The receivable cycle of aerial work platform is short, and its business proportion is increased to improve the company’s overall collection capacity. In 2021, the total asset turnover rate was 0.29, yoy + 0.05 times, which continued to increase steadily; Equity multiplier 2.55, yoy + 0.08, basically stable; ROA6. 7%, yoy + 0.3 PCT; ROE14. 1%, yoy + 1.5 PCT.
The asset management model has been continuously optimized and the sales network has been continuously improved. In terms of asset management mode, the current asset management scale of the company exceeds 7 billion yuan. In recent years, the company has continued to shift its strategy to asset light operation mode (generating 120 million revenue in 2021). Expanding the scale of assets under management can reduce the investment in capital and accelerate the scale expansion; At the same time, the company continues to promote digital construction and build a trusted construction machinery terminal T-box through cooperation with ant chain, which not only improves the trust of the management to participate in the company’s asset light operation, but also provides important support for the company’s second-hand equipment processing and the establishment of industrial maintenance standards. In terms of channel construction, the company has established a perfect online + offline network layout. At present, the offline company has set up 50 large-scale storage bases and more than 150 operation centers in Beijing, Nanjing, Hangzhou, Chengdu and other national key cities, with a same increase of 150%, serving more than 400 cities; Online companies have created online customer acquisition channels by developing small programs. Among them, the signing rate of electronic contracts for aerial work platforms has reached 99%, and the ability of customer acquisition and customer service has been continuously improved to promote sustained and rapid growth.
Investment suggestion: we predict that the net profit attributable to the parent company from 2022 to 2024 will be RMB 670 / 9.0 / 1.2 billion respectively, with an increase of 34% / 34% / 33%, EPS will be RMB 0.74/1.00/1.33 respectively, CAGR will be 34% from 2021 to 2024, and the current share price corresponding to PE will be 16 / 12 / 9 times, maintaining the “buy” rating.
Risk warning: downward risk of rental rate of main equipment; The risk of rent decline due to the intensification of industry competition; The promotion of fixed growth is less than the expected risk, etc.
