\u3000\u30 Jinzai Food Group Co.Ltd(003000) 07 Hanwei Electronics Group Corporation(300007) )
Event: the company released] the 2021 annual report, and the annual operating revenue was 2.32 billion yuan, with a year-on-year increase of 19.3%; The net profit attributable to the parent company was 260 million yuan, with a year-on-year increase of 28.1%. If the influence of infrared thermopile temperature sensor in 2020 is excluded, the year-on-year increase is 57.6%. Among them, Q4 achieved an operating revenue of 730 million yuan in a single quarter, a year-on-year increase of 22.6%; The net profit attributable to the parent company was 54.098 million yuan, a year-on-year increase of 79.1%.
The safety instrument boosted the performance, and the cost continued to decrease during the period. Excluding the impact of equity payment fee of 10.058 million yuan, the net profit attributable to the parent company in 2021 was 270 million yuan, a year-on-year increase of 32.7%. Among them, the sensor achieved a revenue of 280 million yuan (year-on-year – 13.7%), the intelligent instrument achieved a revenue of 560 million yuan (year-on-year + 53.1%), and the Internet of things integrated solution achieved a revenue of 680 million yuan (year-on-year + 17.4%). The high growth of the company’s performance mainly benefited from the explosion of downstream demand for safety instrument business. In 2021, the company’s gross profit margin was 33.5%, and the expense rate decreased slightly, including 7.6% (year-on-year decrease of 1pp), 6.4% (year-on-year decrease of 0.3pp) and 6.8% (year-on-year decrease of 0.9pp). At the same time, the company continued to increase R & D investment, and the R & D expense rate reached 6.8%, with a year-on-year increase of 23%.
Gas sensors are moving towards the consumer level, and the development of household appliances and automobiles has entered the fast lane. 1) Home appliance market: the company successfully entered Midea, Haier, Fangtai and other front-line home appliance manufacturers, and established a joint laboratory with home appliance manufacturers to create a composite sensor to deal with multiple factors such as temperature, humidity, smell, light and so on. 2) Automotive market: the company has officially passed the iatf16949 system certification of vehicle regulation level and invested in Xinli automotive electronics company. The company’s core sensor technology and Xinli’s smooth sales channels form complementary advantages, which is conducive to further opening the automobile market. From 2022 to 2027, the total number of fixed-point products is about 34.11 million, which is expected to be successively converted into orders and delivered in the future.
Safety instruments ushered in the business explosion period, and the orders for flexible sensors were full. With the implementation of the new safety law in 2021, the demand for gas safety instruments has increased significantly. The company has been deeply engaged in the field of gas for 20 years, has docking with mainstream gas companies, and has significant customer advantages. Based on the consideration of security, the market demand is preferentially concentrated in mature enterprises, and the company is expected to gain more market share by virtue of its leading advantages. In terms of flexible sensors, Suzhou nengstar’s production line with tens of millions of years of production capacity has been put into use. At present, there are full orders and continue to cooperate with well-known customers such as Xiaomi technology, Iflytek Co.Ltd(002230) , No. 9 technology and Yadi technology.
Profit forecast and investment suggestions. It is estimated that the company’s EPS from 2022 to 2024 will be 1.05 yuan, 1.39 yuan and 1.84 yuan respectively, and the corresponding PE will be 19 times, 14 times and 11 times respectively, maintaining the “buy” rating.
Risk warning: covid-19 epidemic recurrence risk; The policy promotion is not as expected, resulting in the risk of weakening downstream demand; Less than expected risk of capacity expansion; Internet of things industry competition intensifies risks
