\u3000\u3 China Vanke Co.Ltd(000002) 132 Henan Hengxing Science & Technology Co.Ltd(002132) )
Core conclusion
Event: the company issued the annual report of 2021. In 2021, the company achieved an operating revenue of 3.396 billion yuan, a year-on-year increase of 19.89%, and a net profit attributable to the parent company of 140 million yuan, a year-on-year increase of 14.80%.
The performance of Vajra line is in line with the expected performance of the advanced photovoltaic supplier in 21 years. In 2021, the company's steel cord / Prestressed Steel Strand / steel strand / rubber hose steel wire / diamond wire / galvanized steel wire achieved revenue of RMB 1.211/9.86/5.28/2.75/2.92/0.64 billion respectively. In 21 years, the proportion of diamond wire in the company's operating revenue continued to increase, from 1.51% in 2017 to 8.60% in 2021. Among them, 21q4 achieved an income of 872 million yuan, a year-on-year increase of + 17.27% and a month on month increase of + 5.83%; The net profit attributable to the parent company of 21q4 turned loss into profit, realizing 49 million yuan, with a year-on-year increase of + 32.24% and a month on month increase of + 544.79%. The overall performance was in line with expectations.
Vajra line accelerated shipment and rapidly improved product profitability. From the perspective of shipment volume, the company's diamond line shipment in 21 years continued to increase to 8.0583 million kilometers, a year-on-year increase of + 230.35%. Shipments increased rapidly. From the perspective of profitability, the gross profit margin of the company's diamond line products in 21 years reached 42.89%, with a year-on-year increase of + 29.16%. According to our calculation, the unit price of the company's diamond line products in 21 years was 36.25 yuan, with a year-on-year increase of - 2.50%. The company's diamond line products have a certain cost performance in the industry. At the same time, the gross profit margin is gradually close to the leading suppliers, reflecting the company's better cost control ability.
In the whole line technology industry, the single 16 line machine is gradually verified. The company has the self-made production capacity of the whole wire rod bus product line, and the product end is gradually developing. Up to 21 years ago, the company's diamond line equipment mainly has 8 ~ 11 lines. The 16 line equipment has been successfully developed, and the 16 line machine is undergoing small batch production verification. We expect that the new 16 wire machine will help the company to rapidly improve its shipments in the future.
Investment suggestion: we expect the net profit attributable to the parent company in 22-24 years to be RMB 694 / 1080 / 1384 million respectively, with a year-on-year increase of + 393.9% / + 55.7% / + 28.2%. The corresponding EPS is 0.49/0.77/0.99 yuan. Maintain the "buy" rating.
Risk tip: the prosperity of photovoltaic industry is less than expected, the price of raw materials fluctuates, and the market competition intensifies
