\u3000\u3 China Vanke Co.Ltd(000002) 533 Gold Cup Electric Apparatus Co.Ltd(002533) )
The company’s profit increased significantly, and the electromagnetic wire business fully benefited from the flat wire trend of electric vehicles
In 2021, the revenue was 12.832 billion yuan, a year-on-year increase of + 64.60%, and the net profit attributable to the parent company was 331 million yuan, a year-on-year increase of + 32.6%, of which the net profit of the main wire and cable sector was 321 million yuan, a year-on-year increase of + 51.50%, and the net profit of the electromagnetic wire sector was 153 million yuan, a year-on-year increase of + 58.53%. Q4 in 2021: the operating revenue was 3.516 billion yuan, a year-on-year increase of + 35.20%. The sales volume of the company’s cable products increased steadily, and the sales volume of electromagnetic wire products increased significantly, with a year-on-year increase of + 117.33%, higher than the overall growth rate of the industry. After deducting the impact of asset impairment losses, the company’s profitability continued to improve. We raised the profit forecast for 2022 / 2023 and added the profit forecast for 2024. It is expected that the net profit attributable to the parent company from 2022 to 2024 is expected to reach 525 (+ 0.19) / 706 (+ 1.12) / 901 million yuan, EPS is 0.71/0.96/1.23 yuan / share respectively, and the corresponding P / E ratio of the current stock price is 10.0/7.5/5.8 times respectively, maintaining the “buy” rating.
The company’s strategic “endogenous extension” promotes the further expansion of business scale
Endogenous: the technological transformation, capacity expansion and quality improvement of the main cable industry were carried out in an orderly manner. Jinbei tower was fully put into operation in August 2021, with a new production capacity of 2.25 billion yuan; Wuhan Business Division will form a capacity scale of 5 billion yuan after reaching the production capacity in 2023; The production capacity of high-voltage cross-linked cable of Hengyang business division will be upgraded, and the new production capacity will be 855 million yuan. Extension: the company continues to expand through mergers and acquisitions. After the merger and acquisition of Hengyang cable factory, tapai cable, Wuhan second line and Tongli electrician, the company also jointly established Jinbei Ganchang cable with South cable group. In the future, the merger and acquisition in the electromagnetic wire field will increase the vertical and horizontal integration layout, and the wire and cable field will take regional enterprises as the main target, continue the pace of mergers and acquisitions and expand the business territory.
The production of electric vehicle flat line is accelerated, and the technical R & D strength is strong
Accelerated production expansion of electric vehicle flat line: the existing annual production capacity is 7000 tons. After the completion of phase II, the production capacity will be increased to 25000 tons, and the completion time is expected to be advanced to December 2022. Leading in technology R & D Industry: the company spent 435 million yuan on R & D in 2021, a year-on-year increase of + 70.83%. Based on the mainstream enamelled flat wire, the company expanded two insulation structures: Enamelled + membrane and enamelled + pack. The high-end flat wire products can be applied to 400V, 800V new energy vehicle motors and 1000kV UHV fields, and the processing cost is much higher than that of ordinary flat wire. The application fields of electromagnetic wire are rich: it covers power transmission and transformation (including UHV), wind turbine generator, photovoltaic inverter, new energy vehicle motor, etc., and the product structure can be adjusted quickly to maintain strong profitability.
Risk tip: the competition pattern of the industry is deteriorating; The penetration rate of flat wire motor does not meet the expectation
