\u3000\u30 Zhongyan Technology Co.Ltd(003001) 79 Sf Diamond Co.Ltd(300179) )
Event: the company released its 2021 annual report. In 2021, it achieved a revenue of 417 million yuan, a year-on-year increase of 30.9%; The net profit attributable to the parent company was 920277 million yuan, a year-on-year increase of 22.23%.
The company also released the performance forecast for the first quarter of 2022. It is expected that the net profit attributable to the parent company will reach 36 million yuan to 42 million yuan in Q1, with a year-on-year increase of 59.27% ~ 85.82%.
The industry of resource mining products is booming, and the development of precision processing business is smooth. In terms of business, in 21 years, the company’s revenue from resource mining products was 235 million yuan, a year-on-year increase of 20.79%. With the recovery of overseas epidemic and the rise of oil prices, the number of active drilling platforms in North America continues to increase. It is expected that the company’s business in this block will continue to maintain economic growth this year. In 21 years, the company’s income from precision processing products was 159 million yuan, a year-on-year increase of 52.14%. Based on the core material blade, the company has expanded the products of precision superhard cutting tools, which has brought high-speed growth to the business of this block.
Reserve CVD diamond preparation technology, with broad development prospects. Diamond is widely used in the field of cultivated diamonds and functional materials. The data of cultivated diamond industry show that from January to February this year, India imported 308 million US dollars of cultivated rubble, with a year-on-year increase of 81% and a penetration rate of 5.8%. The industry is developing at a high speed, with low penetration rate and huge development space in the future. Due to the excellent thermal, optical and electrical properties of diamond, the demand for functional materials will gradually open in the future. According to the announcement, the company transferred some CVD diamond preparation technology and diamond functional application technology owned by Zhengzhou University in April of 20 years to create a future growth point.
Profit forecast and investment suggestions: it is estimated that the operating revenue of the company from 2022 to 2024 will be 545 million yuan, 675 million yuan and 851 million yuan respectively, and the net profit attributable to the parent company will be 156 million yuan, 202 million yuan and 268 million yuan respectively, with corresponding EPS of 32 million yuan, 41 million yuan and 55 million yuan respectively. Maintain the “buy” rating, and the six-month target price is 13.44 yuan, which is equivalent to 42 times the dynamic P / E ratio in 22 years.
Risk tip: the boom of downstream oil and gas exploration fluctuates, and the R & D of diamond cultivation technology is less than expected.
