\u3000\u3 China Vanke Co.Ltd(000002) 960 Jade Bird Fire Co.Ltd(002960) )
Event:
The company released its annual report for 2021, achieving a revenue of 3.863 billion yuan, a year-on-year increase of 53.03%; The net profit attributable to the parent company was 530 million yuan, a year-on-year increase of 23.21%; The net profit deducted from non parent company was 513 million yuan, with a year-on-year increase of 36.63%.
Key points of the report:
The company’s performance is in line with expectations, and good progress has been made in its main business and new business
In 2021, the company’s general fire alarm business achieved rapid growth, with a revenue of 2.471 billion yuan, a year-on-year increase of 30.88%; The company seized the major development opportunities of the evacuation industry, the emergency lighting and intelligent evacuation business developed rapidly, the orders and shipments continued to grow explosively, and the operating revenue reached 660 million yuan, a year-on-year increase of more than 266%; In 2021, the company further improved the product system of industrial fire protection and won the bid, including the relocation project of Hebei Tianzhu iron and Steel Group and the green high-quality steel project of Zhongtian iron and steel, with a revenue of 36 million yuan, a year-on-year increase of 225.67%, laying a good foundation for the expansion of industrial fire protection electronic market in 2022. The gas business developed rapidly, and the business of automatic fire extinguishing system achieved a revenue of 334 million yuan, a year-on-year increase of 33.70%; The business of gas detection and monitoring system achieved a revenue of 115 million yuan, a year-on-year increase of 35.98%.
Increase investment, consolidate sustainable development capacity and maintain stable profitability
The company continues to increase the layout of R & D, technology and products, as well as the construction of brands and sales channels, so as to consolidate its leading position in the field of fire electronics. In 2021, the company’s administrative expenses / R & D expenses / sales expenses were 216 / 186 / 406 million yuan respectively, with a year-on-year increase of 39.18% / 35.11% / 75.65%. In the context of the sharp rise in commodity prices, the company ensures the stable supply of raw materials and the stable and controllable gross profit margin by using the self-developed “Crested Ibis” chip and implementing measures such as mining and research linkage, cost reduction and efficiency increase. Under the condition of taking measures such as increasing goods preparation and locking long orders, the net operating cash flow of 195 million yuan will be realized in 2021.
Electrochemical energy storage is about to break out, and the project continues to help release the performance of energy storage and fire protection
In 2022, the implementation plan for the development of new energy storage in the 14th five year plan will promote the development of new energy storage from the initial stage of commercialization to the stage of large-scale development. Electrochemical energy storage is about to break out, and fire safety has become the key bottleneck restricting the development of energy storage. The company continues to promote the market expansion and application of its “detection + fire extinguishing” system products in the field of energy storage power stations. In 2021, the company has won the bid for the American broadreach power independent power producer project, multi specification energy storage container gas fire extinguishing system and other projects. In the future, the company will give full play to the unique underlying technical advantages of “Crested Ibis” chip, promote the development and expansion of energy storage fire safety solutions based on battery modules with the reserve of miniaturized and cable detector products and multi-dimensional (smoke, temperature, gas, etc.) detection, and help release the performance of the company.
Investment advice and profit forecast
In the future, the company will enjoy the development space brought by the expansion of fire market and the improvement of market share, and continue to realize its performance with rich product matrix and strong sales channels. The company actively lays out the golden track of energy storage and fire fighting, and the continuous implementation of the project will create the second growth curve. From 2022 to 2024, we expect the net profit attributable to the parent company to be RMB 713 / 972 / 1272 million respectively, the corresponding EPS of the current stock price to be 2.05/2.79/3.66 respectively, and the corresponding PE to be 20.4/15.0/11.4 times respectively, maintaining the “buy” rating.
Risk tips
Market competition intensifies, the growth rate of energy storage is lower than the expected risk, and the expansion of emergency evacuation market is lower than the expected risk
