\u3000\u3 Shengda Resources Co.Ltd(000603) Leon Technology Co.Ltd(300603) 300)
Event:
The company issued the annual report of 2021. During the reporting period, the company achieved a revenue of 2.61 billion yuan, an increase of 71% at the same time; The net profit attributable to the parent company was 498 million yuan, an increase of 54% at the same time; Deduct non net profit of 465 million yuan, an increase of 76% at the same time. In the fourth quarter alone, the company realized an operating revenue of 810 million yuan, an increase of 55% at the same time; The net profit attributable to the parent company was 167 million yuan, an increase of about 2% at the same time; Deduct non net profit of 154 million yuan, an increase of 20% at the same time. The company plans to distribute a cash dividend of 1.27 yuan (including tax) for every 10 shares, and plans to increase 4 shares with capital reserve for every 10 shares. The company predicted that the net profit attributable to the parent company in 21q1 was 103 million yuan, an increase of about 35.8% at the same time.
Comments:
All businesses have achieved rapid growth, especially the high-speed aircraft leasing business:
During the reporting period, the company achieved operating revenue of 1.09 billion yuan, 1.24 billion yuan and 250 million yuan respectively for aerial work platform, building support equipment and underground maintenance, with an increase of 131%, 47% and 36% respectively. Correspondingly, the scale of the company’s operating lease assets has increased significantly. At the end of the period, the original value of the company’s operating lease assets (fixed assets + right to use assets) was about 7.9 billion yuan, an increase of 61% with a net increase of about 3 billion yuan.
At the end of the period, the management scale of the company’s aerial work platform has reached 47000, with an increase of about 26000; The management scale of high-speed machinery equipment has ranked the second in China, with an average rental rate of 85.7%. By establishing a standard model of outlets, the company has quickly realized remote replication and expansion. At present, there are more than 150 operation centers, with a year-on-year increase of 150%; More than 60000 customers have been served, of which the number of small and medium-sized customers accounts for about 99%. The effect of the “asset light” mode is beginning to show. The company focuses on promoting the “sublease” mode on the aerial work platform, that is, the fund party or the idle party is responsible for the purchase of equipment, sublet it to the company at a certain price, and the company will rent it again; At present, the number of sublet equipment is nearly 5000, the asset value exceeds 600 million yuan, and the cumulative operating income exceeds 120 million yuan.
The leasing of building support equipment and underground maintenance business have achieved rapid growth. Among them, the company has more than 300000 tons of subway steel support; The number of civil steel supports (mainly used for the construction of shopping malls, buildings and other foundation pits) reached about 20000 tons, an increase of 158% at the same time. The aluminum formwork and climbing frame business have been integrated. The company has completed the acquisition and integration of minority shareholders such as Zhejiang hengaluminum, Zhejiang YueShun and Hubei rentai. At present, the company has a total of 1.6 million square meters of aluminum formwork and climbing frame, an increase of 26% at the same time. Breakthroughs have been made in the application scenarios of various construction methods in underground maintenance business, and projects have been implemented in the fields of cultural relics protection, environmental protection engineering, water conservancy and so on.
The contribution of high-tech leasing to profits is improved, and the profitability is affected by the business structure:
In the fourth quarter alone, the growth rate of the company’s net profit attributable to the parent slowed down, mainly affected by credit impairment. 21q4, the company’s credit impairment loss was – 36.23 million yuan; In 20q4, the company’s credit impairment loss was + 56.46 million yuan. 20q4 the reversal of credit impairment is mainly the one-time impact of the adjustment of the new accounting standards.
During the reporting period, the company’s comprehensive gross profit margin was 51.6%, with a decrease of 2.3pcts; This is mainly due to the increase in the contribution of aerial work platform leasing business and the decrease in the gross profit margin of construction support business. During the reporting period, the gross profit margin of the company’s aerial work platform, building support equipment and underground maintenance business was 52.2%, 51.4% and 53.6% respectively, with an increase of 4.0pct, – 6.6pct and 3.6pct respectively; Each business segment contributed net profits (including minority shareholders’ profits and losses) of 260 million yuan, 269 million yuan and 70 million yuan respectively; Increased by 158.9%, 11.5% and 23.1% respectively.
During the reporting period, the company’s ROA was 6.67%, with an increase of 0.33pct; Roe reached 13.43%, with an increase of 3.76pct. The increase in roe was mainly due to the increase in asset liability ratio. During the reporting period, the company increased the scale of capital expenditure, and the scale of non current liabilities increased significantly; At the end of the period, the company’s asset liability ratio was 61.3%, with an increase of 11.68 PCTs.
The cash flow is outstanding and the turnover of accounts receivable is accelerated:
During the reporting period, the company’s net operating cash flow inflow was 1.105 billion yuan, an increase of 105.5% at the same time; The turnover days of accounts receivable are 244 days, with a decrease of 37 days. The main reasons are as follows: 1) the company increased the collection efforts and accelerated the collection of funds from the construction support sector; 2) The accounting period of aerial work platform business is short. With the increase of the proportion of this business, the turnover of accounts receivable is accelerated accordingly.
The management iteration is accelerated, and the digital strategy is accelerated
During the reporting period, the company’s personnel scale maintained expansion, and the total number of employees at the end of the period reached 2586, an increase of about 52% at the same time; The company has established the “worker bee camp” plan focusing on service personnel, the “little bee” plan focusing on internal management trainees and the “Iron Army” plan focusing on sales personnel, designed different recruitment and training schemes for three different posts, formed a standardized training system for various posts and improved the professional level of each post.
In the digital field, the company has carried out system iteration according to the actual needs of the front line, and has realized the online of the whole business process and life cycle of the aerial work platform; At present, we are still working on several modules, such as the ability classification of maintenance personnel and the online management of accounts receivable, looking forward to the intelligent operation of the system. In addition, the company optimizes the front-end personnel assessment system and refines the assessment nodes in combination with the development of digital system; Explore the formation of benefit sharing mechanism, and open up the information sharing mechanism of internal business modules by giving a certain proportion of share to business opportunity providers. Recently, the company promoted cooperation with ant chain, established a feasible equipment tracking trust system through Internet of things and blockchain technology, reduced the financial cost of equipment, and prepared for the subsequent large-scale promotion of “asset light” mode.
Profit forecast, valuation and rating: under the background of weak total demand for infrastructure and real estate, the company has maintained high growth and strong profitability. The core lies in: 1) equipment leasing business represented by aerial work platform, aluminum formwork and civil steel support. At present, the ownership of relevant equipment in China has not reached the peak and is still in the stage of rapid development The total demand of real estate has less impact on the demand of subdivided fields; 2) The equipment leasing industry has obvious scale effect and network effect, and the top enterprises are always strong with high probability. Continue to be optimistic about the development trend of equipment leasing industry and the company’s exploration of “asset light” mode; With the acceleration of the company’s management iteration and the continuous promotion of the digital strategy, its competitive advantage will gradually appear. Maintain the forecast of net profit attributable to parent company from 2022 to 2023 of RMB 688 million and RMB 878 million, increase the forecast of net profit attributable to parent company in 2024 to RMB 1.133 billion, and maintain the “buy” rating.
Risk tip: the rental return rate is lower than expected, the asset impairment risk, and the channel layout is lower than expected.
