\u3000\u30 Shaanxi Zhongtian Rocket Technology Co.Ltd(003009) 53 Ningbo Zhenyu Technology Co.Ltd(300953) )
Event: the company released its annual report for 2021. In 2021, the company achieved an operating revenue of 3.034 billion yuan, a year-on-year increase of 154.37%, a net profit attributable to the parent of 170 million yuan, a year-on-year increase of 30.66%, and a net profit attributable to the parent after deduction of Non Profits of 166 million yuan, a year-on-year increase of 30.49%. The performance was in line with expectations.
Lithium battery structural parts and motor iron core business drive high performance growth. The driving force of the company’s performance growth in the past 21 years mainly comes from the business of motor iron core and power lithium battery structural parts. 21q4 achieved a revenue of 1.100 billion yuan, a year-on-year increase of 125%, a month on month increase of 30%, and a net profit attributable to the parent company of 53 million yuan, a year-on-year decrease of 15.7% and a month on month increase of 17.9%; The net profit attributable to the parent company after deduction was 49 million yuan, an increase of 12.3% month on month. The profit growth rate of 21q4 is lower than that of revenue, mainly due to the sharp rise in the cost of raw materials.
Aluminum prices rose, profitability was under pressure, and 21q4 gross profit margin stabilized. The gross profit margin of the company in 2021 was 18%, with a year-on-year decrease of 7.6pcts; The net interest rate was 5.6%, a year-on-year decrease of 5.3pcts. The gross profit margin of the company in 2021q4 was 15.89%, increased by 0.43pcts quarter on quarter, and the gross profit margin stabilized; The net interest rate was 4.78%, a quarter on quarter decrease of 0.49pcts. In terms of business, the gross profit margin of lithium battery structural parts in 21 years was 17.5%, with a year-on-year increase of -4.5pcts; The gross profit margin of motor core business was 18.6%, with a year-on-year increase of + 1.5pcts. The pressure on profits is mainly due to the increase in the cost of materials such as aluminum, silicon steel sheet and copper in the precision structural parts business. In 21 years, the material cost of the precision structural parts business accounted for 68% of the operating cost, with a year-on-year increase of + 12pcts.
Equity incentive was implemented, and the actual controller participated in the fixed increase to demonstrate confidence. In March 2022, the company issued the draft of equity incentive, and planned to grant the total amount of class II restricted shares to 153 people, including deputy general managers, core management and technical (business) personnel, which was 4253000 shares, accounting for 4.57% of the total share capital at the time of announcement, and the grant price was 57.51 yuan / share. The performance evaluation target value of restricted shares granted for the first time is that the net profit deducted from non parent company in 22 / 23 / 24 / 25 / 26 years is not less than RMB 2.5/3/3.6/4.3/518 billion, or the cumulative net profit from 22 to 23 / 24 / 25 / 26 years is not less than RMB 5.5/9.1/13.4/1858 billion. On the same day, the company announced that it planned to increase by no more than 800 million yuan and the issue price was 82.63 yuan / share. After deducting the issue expenses, it will be used to supplement working capital and repay bank loans. The issue object is Jiang Zhenlin, the controlling shareholder and actual controller of the company, and Ningbo Zhenyu new energy Co., Ltd.
Lithium battery structural parts and motor iron core benefit from the high growth rate of the industry. As one of the main suppliers of Contemporary Amperex Technology Co.Limited(300750) lithium battery structural parts, the company benefits from the rapid growth of Contemporary Amperex Technology Co.Limited(300750) power battery output and the increase of supply share. The company’s production capacity is expanding rapidly, and the new production capacity of Ninghai, Fu’an, Liyang and Yibin bases are released one after another. The large-scale is expected to improve the company’s cost competitiveness and grow rapidly at the price of volume. The business of motor core grew rapidly. The company supplied leading new energy vehicle enterprises such as Byd Company Limited(002594) and entered the new power supply chain. The motor core opened the second growth curve.
Profit forecast, valuation and rating: the company’s short-term profit is under pressure due to the rise in the price of raw materials; In the medium and long term, the expansion of production actively follows Ningde to achieve rapid growth, and the market share is expected to increase; The motor core is expected to provide the second growth curve, and the expected difference is large. Maintain the 22-year, lower the 23-year net profit forecast (0% / – 5%) and add a 24-year forecast of RMB 398 / 600 / 807 million respectively. The current stock price corresponds to pe26 / 18 / 13 times, maintaining the “buy” rating.
Risk warning: the price of raw materials rises; High customer concentration; Sales of new energy vehicles were lower than expected.
