\u3000\u30 Jinzai Food Group Co.Ltd(003000) 07 Hanwei Electronics Group Corporation(300007) )
Event: on the evening of March 30, the company released its annual report for 2021. The company achieved an operating revenue of 2.316 billion yuan, a year-on-year increase of 19.32%; The net profit attributable to the parent company was 263 million yuan, a year-on-year increase of 28.05%; The net profit deducted from non parent company was 176 million yuan, with a year-on-year increase of 45.60%.
The annual performance continued to grow and the company’s operation was stable: in 2021, the company’s performance was stable and positive, and the growth rate of net profit was higher than that of revenue. After excluding equity incentive expenses, the net profit attributable to the parent increased by 32.70% year-on-year. In terms of revenue structure, the revenue of sensors, intelligent instruments, Internet of things integrated solutions and utilities accounted for 11.96% / 24.21% / 29.53% / 32.62% respectively, with a year-on-year ratio of – 4.58% / + 5.34% / – 0.47% / – 0.17%; The corresponding gross profit margin was 39.82% / 45.14% / 29.70% / 25.09% respectively, with a year-on-year increase of -8.69 / -1.02/0.90/2.83pcts. In terms of Q4 single quarter, the revenue of 21q4 was 726 million yuan, yoy + 22.58%, QoQ + 48.17%; The net profit attributable to the parent company was 54 million yuan, yoy + 79.71% and qoq-22.89%, maintaining the prosperity of production and sales in the second half of the year. The month on month decrease was mainly affected by factors such as equity incentive provision. On the cost side, the company’s R & D investment increased steadily. In 2021, the annual R & D expenditure was 158 million yuan, a year-on-year increase of 22.99%. During the reporting period, 104 patents and 71 software copyrights were added, and the number of R & D personnel increased by 22.38% year-on-year.
There is a broad market space for intelligent instruments, and domestic substitutes continue to benefit: the company’s intelligent instrument business has performed well, with an operating revenue of 561 million yuan in 21 years, a year-on-year increase of 53.06%. Under the dual effects of the new production safety law and the safety accident in Shiyan, Hubei Province, the orders of the company’s gas alarm and other products increased significantly during the reporting period. The gas safety equipment covered five gas groups and gas groups in key cities, and the production and sales volume reached a record high. At the same time, with the acceleration of domestic substitution process, according to the announcement, the company successfully won the annual framework of PetroChina and Sinopec, and made a breakthrough in the blank field of Chinese products such as CNOOC and semiconductor. We believe that the current downstream market penetration is low, and the company has the first mover advantage of domestic leaders, and will maintain a relatively high gross profit margin and growth rate in the short term. With the improvement of safety awareness and the accelerated evolution of domestic alternatives, the instrument market will release strong demand, and the company is expected to continue to benefit.
Sensors are distributed in multiple fields, and the Internet of things business builds a new driving force for growth: according to the company’s announcement, while maintaining the market share in the traditional security and environmental fields, the company’s sensor business actively arranges the fields of home appliances and automobiles, and is shortlisted in the list of qualified suppliers of Gree, Midea, Huawei, Xiaomi and other enterprises, so as to realize mass supply; Weisheng technology, a subsidiary, has passed iatf16949 certification and obtained fixed-point orders from auto enterprises. The flexible sensor technology level and industrialization degree of the subsidiary nengstar have been in a leading position in China. During the reporting period, the production line with an annual output of ten million flexible sensors has been put into use, and the orders are full. In terms of integrated solutions for the Internet of things, new projects have been launched in the fields of smart security, smart city and smart environmental protection, which has increased penetration, contributed revenue and accelerated the release of sensor demand. The company takes sensors as the core, constructs a relatively complete Internet of things ecosystem, and forms the coordinated development among sensors, instruments and meters, and Internet of things industry applications. In the context of the “double carbon” goal and the digital and intelligent transformation of the whole society, the in-depth development of sensors and the Internet of things will be accelerated, and the company’s business is expected to grow further.
Investment suggestion: we estimate that the company’s revenue from 2022 to 2024 will be 3.043 billion yuan, 3.996 billion yuan and 5.254 billion yuan respectively, the net profit attributable to the parent company will be 362 million yuan, 491 million yuan and 666 million yuan respectively, and the EPS will be 112 million yuan, 151 million yuan and 205 yuan respectively, corresponding to 18 times, 13 times and 10 times of PE respectively. For the first time, the investment rating of Buy-A is given.
Risk tip: the risk of intensified competition in the Internet of things market; Risk of insufficient innovation ability; Risk of insufficient group management and control ability
