\u3000\u3 China Vanke Co.Ltd(000002) 745 Mls Co.Ltd(002745) )
Event: the company released its annual report for 2021. In 2021, the company achieved an operating revenue of 18614613500 yuan, a year-on-year increase of 7.10%, and a net profit attributable to shareholders of listed companies of 1158991300 yuan, a year-on-year increase of 284.10%, accounting for 6.23% of the operating revenue.
Comments: we are optimistic that the profitability of landvance brand will continue to improve. At the same time, plant lighting, photovoltaic and miniled businesses will bring new growth curves. The short-term dimension is optimistic about the company's overseas brand, landvance brand and manufacturing synergy, which will bring continuous upward business ability and release miniled profits. The medium and long-term dimension is optimistic about the company's in-depth integration and integrated layout, entering plant lighting, photovoltaic and energy storage tracks, and blocking emerging high-end markets.
The prosperity of the LED industry has gradually warmed up, and the company's net profit has reached a record high. The company focuses on LED packaging and led smart lighting brand business, covering LED semiconductor materials, new application products and innovative business. After years of development, the company has become a leader in the global lighting industry and one of the leaders in China's LED semiconductor industry. In 2021, under the joint action of China's sustained economic and export recovery and the pull of downstream domestic demand, the LED industry started a new round of industrial boom cycle. The company's capacity utilization rate and production and marketing rate have been continuously improved, realizing the best operating performance in history. At the same time, the company has achieved remarkable results in reducing costs and increasing efficiency. By improving the level of financial management and scientifically controlling costs and expenses, the company's interest bearing liabilities, asset liability ratio and accounts receivable have decreased.
Landvance's profitability continued to improve, vertically integrated the industrial chain and entered the new track of photovoltaic energy storage and miniled. In 2021, landvance brand products achieved an operating revenue of 10.217 billion yuan, with a gross profit margin of 39.08%, an increase of 0.35% year-on-year. Landvance brand has strong international influence and perfect global marketing channels. Its good product quality and brand advantages are expected to maintain the company's dominant position in the future market development and competition for a long time. Landvance, a subsidiary of the company, has achieved remarkable business results. The company is deeply integrated in terms of brand, channel, R & D, production and operation and global supply chain, and the synergy effect of industrial chain continues to be released. The company has set up landvance new energy Co., Ltd. to enter the photovoltaic and energy storage sub circuit and promote overseas household energy storage business. In addition, the company vigorously develops miniled business, actively plans and expands miniled production capacity, and cultivates new profit growth points.
Continue to increase R & D investment and inject new kinetic energy into plant lighting. Adhering to the development mode of independent R & D and school enterprise cooperation, the company has created an overall solution for intelligent manufacturing. In 2021, the company invested 5501475 million yuan in R & D expenses, a year-on-year increase of 21.38%. In terms of plant lighting, the company has successively developed LED plant factory solutions that meet the characteristics of high quality and high yield of plant growth with the center for excellence and innovation in molecular plant science of the Chinese Academy of Sciences and the Institute of urban agriculture of the Chinese Academy of Agricultural Sciences. The company's biological shelter is committed to solving the problems of China's grass storage balance overload and dependence on forage import, with huge potential demand space. At present, the company's biological shelter and plant factory projects have been orderly introduced to the market and recognized by customers. The company made an in-depth layout in the LED segment with high added value, high magnitude and high growth. New businesses and products such as plant lighting, air purification and UVLED promoted the revenue of Mls Co.Ltd(002745) brand to increase by 56.17% year-on-year and the gross profit margin to increase by 12.97% year-on-year.
Investment suggestion: we are optimistic that the profitability of landvance brand will continue to improve. At the same time, plant lighting, photovoltaic and miniled businesses will bring new growth curves. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 1.597 billion, 1.978 billion and 2.374 billion, maintaining the "buy" rating.
Risk of price fluctuation and trade friction of raw materials
