\u3000\u3 Shengda Resources Co.Ltd(000603) Leon Technology Co.Ltd(300603) 300)
Event: on the evening of March 30, the company released the 2021 annual report and the forecast of the first quarterly report of 2022.
High performance growth exceeds expectations; Year on year performance in 2021 + 54%, year on year performance in 2022q1 + 36%
In 2021, the company achieved a revenue of RMB 2.607 billion, a year-on-year increase of + 71%, and a net profit attributable to the parent company of RMB 498 million, a year-on-year increase of + 54%, which exceeded the previous performance express (RMB 486 million), and a net profit attributable to the parent company of RMB 464 million after deduction of non profits, a year-on-year increase of + 76%. Among them, Q4’s single quarter revenue was about 814 million yuan, a year-on-year increase of + 55%, and the net profit attributable to the parent company was about 167 million yuan, a year-on-year increase of + 2%. The slowdown in profit growth was mainly due to the reversal of credit impairment loss in 2020q4 and the high base. The performance of 2022q1 maintained rapid growth, and the net profit attributable to the parent company is expected to be 103 million yuan, a year-on-year increase of + 36%. The company’s performance increased higher than expected.
In 2021, the development of aerial work platform sector is strong, and it is expected to maintain a high growth trend in 2022
In 2021, the revenue of the company’s aerial work platform segment was about 1.1 billion yuan, a year-on-year increase of + 131%, accounting for about 42% of the total revenue, a record high. The scale of management equipment exceeded 47000 units, a year-on-year increase of + 125%, the number of outlets exceeded 150, a year-on-year increase of + 150%, and the rental rate was about 86%. From January to February 2022, the company’s aerial work platform segment achieved a revenue of about 138 million yuan, a year-on-year increase of + 119%, and the rental rate increased steadily compared with the same period. Based on the high outlook of the high-speed machinery industry in the beginning of 2022 (the sales volume of 11 lifting working platforms counted by the Construction Machinery Association from January to February was + 85% year-on-year) and the company’s situation, we believe that the company’s high-speed machinery leasing business is expected to maintain a high growth trend in 2022.
Financial expenses decreased significantly, with a year-on-year decrease of -2.6pct, and the promotion of asset light mode achieved initial results
The gross profit margin of the company’s sales in 2021 was about 51.6%, a year-on-year increase of -2.3pct. The main reason for the decline in gross profit margin may be the slowdown of railway construction under the epidemic in 2021, the reduction of the proportion of high gross profit subway support products, and the growth of low gross profit aluminum molds, climbing frames and other products, which led to the decrease of 6.6pct in the gross profit margin of building support equipment. During the period, the expense rate fell sharply, with a year-on-year decrease of -4.3pct. Among them, the sales / management / R & D expense ratio decreased by 0.3 / 0.8 / 0.7 respectively, mainly due to the scale effect brought by the growth of revenue scale, and the financial expense ratio decreased significantly (- 2.6pct). It is expected that the promotion of asset light mode of the company will achieve initial results. The net profit margin on sales was about 23%, with a year-on-year decrease of – 3.2pct, which was higher than the gross profit margin. The reason may be that the asset impairment (including credit) was reversed in 2020 and normally accrued in 2021 (the asset impairment loss in 2021 was about 80 million yuan, an increase of 120 million yuan compared with 2020).
The fixed increase of 600 million yuan has been accepted by the CSRC. After the successful completion, the company’s performance growth momentum is expected to be improved again
On March 18, the company announced that the previously submitted non-public discovery shares had been accepted by the CSRC. If the subsequent issuance is successful, assuming that all the raised funds are used to purchase the equipment of aerial work platform, according to the unit price of 100000 and the down payment of 20-30%, the fixed increase of RMB 600 million will increase the number of equipment by 2 Fawer Automotive Parts Limited Company(000030) 000 (accounting for 42-64% of the number of equipment in 2021), and the company’s performance is expected to improve again.
Profit forecast
It is estimated that the company’s revenue from 2022 to 2024 will be 3.5/47/6 billion yuan, with a year-on-year increase of 35% / 33% / 29%; The net profit attributable to the parent company was 670 / 880 / 1.13 billion yuan respectively, with a year-on-year increase of 34% / 32% / 28%, corresponding to P / E16 / 12 / 9x. Maintain the company’s “buy” rating.
Risk tips
1) the decline of industry prosperity leads to the decline of rental rate; 2) Intensified competition leads to downward rent
