\u3000\u3 China Vanke Co.Ltd(000002) 132 Henan Hengxing Science & Technology Co.Ltd(002132) )
Events
Henan Hengxing Science & Technology Co.Ltd(002132) released the annual report of 2021. In 2021, the company realized an operating revenue of 3.396 billion yuan, an increase of 19.9% at the same time; The net profit attributable to the parent company was 140 million yuan, an increase of 14.8% at the same time; Deduct the net profit not attributable to the parent company of 118 million yuan, an increase of 27.16% at the same time. The corresponding revenue of 2021q4 was 872 million yuan, an increase of 17.27% at the same time; The net profit attributable to the parent company was 49 million yuan, a decrease of 32.24%.
Key investment points
The performance was in line with expectations, and the diamond line increased in large quantities
The company's performance is in line with expectations. In terms of metal products business: due to the increase in the proportion of photovoltaic diamond line business, the revenue of metal products business was 3.064 billion yuan, which decreased to 90% compared with last year. Moreover, due to the epidemic last year, the flood in Henan and the rise in commodity prices, the gross profit margin of traditional businesses decreased 3pcts to 10% and the profitability decreased. Vajra line: in 2021, the company's Vajra line business began to expand rapidly, selling 8.05 million kilometers of Vajra line, with a year-on-year increase of 230%, mainly due to the company's rapid expansion of production capacity in parallel with technical transformation. The unit price excluding tax of the company's sales Diamond line was 36.2 yuan / km, a year-on-year decrease of 6.4%, the overall revenue was 292 million yuan, a year-on-year increase of 209%, and the gross profit margin was 43%, a year-on-year increase of 29pcts, which was the main incremental source of the company's profit increase.
The integrated layout of diamond line will reduce costs and further expand production capacity
The company has the core process technology of the whole production chain from wire rod to diamond wire finished products. The self-made yellow wire and bus bring obvious cost advantages to the company. With the further expansion of the company's production capacity, there is still room for continuous cost reduction in the reuse of I-wheel and waste sand recovery in the future. The company's current annual production capacity is about 12 million kilometers. It is expected that the company will build 46 million kilometers by the end of the year, and the market share is expected to further increase.
Silicone brings the company's second growth curve
At present, the whole process of the company's organic silicon business has been opened up, and DMC products meeting the needs of customers have been produced and sold. Combined with the resource advantages of the western region, the company's organic silicon output is expected to be about 80000 tons in 2022, forming a dual main industry development pattern dominated by metal products and new chemical materials.
Profit forecast
We predict that the company's revenue from 2022 to 2024 will be 6.320 billion yuan, 7.720 billion yuan and 8.569 billion yuan respectively, and its EPS will be 0.29, 0.46 and 0.51 yuan respectively. The corresponding PE of the current stock price will be 18, 11 and 10 times respectively, giving it a "recommended" investment rating.
Risk tips
The price of organic silicon is down, the progress of organic silicon project is less than expected, the installation of photovoltaic capacity is less than expected, and the progress of raised investment projects is less than expected.
