\u3000\u3 China Vanke Co.Ltd(000002) 967 Guangzhou Grg Metrology&Test Co.Ltd(002967) )
Revenue / net profit attributable to parent company in 2021 was + 22.09% / – 22.60% year-on-year. The company achieved a revenue of 2.247 billion yuan in 2021, with a year-on-year change of + 22.09%; The net profit attributable to the parent company was 182 million yuan, with a year-on-year change of – 22.60%. The lower than expected net profit was mainly due to the low growth rate of revenue due to the impact of epidemic and other factors, while the costs and expenses such as employee compensation, depreciation expenses and house rent increased rapidly. In a single quarter, the revenue of 21q1-q4 was 3.09/5.17/5.69/853 billion yuan respectively, and the net profit attributable to the parent company was -0.73/0.54/0.62/139 million yuan respectively, showing a good trend quarter by quarter.
The level of profit margin decreased, and the expense rate decreased steadily during the period. In 2021, the company’s gross profit margin / net profit margin were 41.38% / 8.57% respectively, with a year-on-year change of -1.89 / – 4.64 PCT. In terms of period expenses, the rates of sales / management / Finance / R & D expenses were 12.89% / 7.19% / 1.92% / 9.93% respectively, with a year-on-year change of + 0.14 / + 0.85 / – 0.78 / – 1.09 PCTs. Among them, the management expenses increased by 37.34 million yuan due to the merger of Zhong’an Guangyuan in 2021, and the total period expense rate decreased. In terms of capital expenditure, the company paid 455 million yuan in cash for the purchase of fixed assets, a year-on-year increase of + 25.44%, and continued to increase investment in equipment. In terms of cash flow, the company’s net operating cash flow was 499 million yuan, which was about 2.74 compared with the net profit attributable to the parent company this year, a significant increase of 1.78 compared with the same period last year, mainly due to the company’s strengthening of accounts receivable management.
The growth of measurement business slowed down and EMC grew brightly. By business, the revenue from measurement / reliability and environmental test / electromagnetic compatibility / chemical analysis / food / environmental protection / EHS evaluation and consultation was 504 / 6.51 / 2.43 / 1.22 / 1.59 / 1.73 / 239 million yuan respectively, and the gross profit margin was about 39% / 49% / 54% / 39% / 20% / 30% / 50% respectively. Among them, the measurement service revenue was + 0.41% year-on-year, and the gross profit margin decreased by 7.5 PCT, mainly due to the delay of important orders; EMC revenue was + 33.11% year-on-year, and the gross profit margin increased by 5.02 PCT, mainly due to the fact that under the key layout in the early stage, it has the ability of multi product and multi system EMC testing, and the good effect of market expansion of key customers; The revenue of newly cultivated chemical analysis / food / environmental protection business was + 0.85% / 3.70% / 10.57% year-on-year, and the gross profit margin decreased by 10.64/5.53/0.37 PCT respectively, mainly due to the relatively high proportion of government customers. However, due to the tightening of government budget in recent years, it is expected to be improved with the optimization of government and enterprise structure, the continuous increase of investment in cultivation business and the improvement of capacity.
Risk warning: economic downturn; Credibility is affected by adverse events; Business growth was lower than expected.
Investment suggestion: as a leading third-party comprehensive testing company, the company is located in a testing track with long slope and thick snow. However, in 202021, due to the epidemic situation, intensified competition in some businesses and other external reasons, the income was lower than expected, and the cost front profit was lower than expected due to the high investment of personnel and capital. We believe that the operation of the company is expected to improve after the negative factors are eliminated, We lowered the company’s net profit attributable to the parent company for 22-24 years to RMB 256 / 3.41/4.42 (the value was RMB 374 / 504 million 22-23 years ago), corresponding to pe41 / 31 / 24 times, maintaining the “buy” rating.
