Jingjin equipment ( Jingjin Environmental Protection Co.Ltd(603279) )
Event:
Jingjin equipment released its 2021 annual report:
1) in 2021, the company achieved a revenue of 4.651 billion yuan, a year-on-year increase of 39.7%; The net profit attributable to the parent company was 647 million yuan, a year-on-year increase of 25.71%.
2) 2021q4: the company achieved revenue of 1.316 billion yuan, a year-on-year increase of 26.77%; The net profit attributable to the parent company was 197 million yuan, a year-on-year increase of - 2.64%.
Orders continued to increase, driving the annual revenue by 40% year-on-year. In 2021, the company's revenue increased by 39.7% year-on-year, mainly due to the continuous development of new products and the continuous expansion of applications in new industries. Among them, the income of the whole filter press, accessories (filter sector + filter cloth), other accessories and supporting equipment was 3.89/5.7/180 billion yuan respectively, with a year-on-year growth rate of 43.9% / 25.7% / 121.9% respectively. The income of other supporting equipment increased significantly, mainly the peripheral equipment supporting the filter press. The company's supporting equipment has formed a number of series products, mainly including centrifugal series equipment, drying series equipment, etc. By the end of 2021, the company's contractual liabilities were 1.682 billion yuan, a year-on-year increase of 24.32%.
Rising raw material prices + amortization of equity incentive costs, and the annual net interest rate decreased by 1.55pct.
1) 2021: the growth rate of net profit attributable to parent company was 26.77%, which was lower than the growth rate of revenue, and the net profit margin decreased by 1.55pct to 13.91%, mainly because: 1) the gross profit margin decreased by 2.0pct, mainly due to the obvious rise in the prices of polypropylene, steel and other main raw materials; 2) During the period, the expense rate increased by 0.9pct, of which the management expense rate increased by 0.17pct to 4.47%, mainly due to the amortization of equity incentive costs; The R & D expense ratio increased by 1.19pct to 3.04%, mainly due to the increase of R & D investment and the amortization of equity incentive costs of R & D personnel. In addition, the company's net operating cash flow in 2021 was 577 million yuan, a year-on-year decrease of 5.54%, mainly due to the increase in cash paid for procurement due to the rise in the price of raw materials and the increase in procurement volume.
2) 2021q4: the company's net profit attributable to the parent company decreased by 2.64% year-on-year, and the net interest rate decreased by 4.53pct to 14.99% year-on-year. We believe that there are two reasons: first, the increase of salesperson's salary, travel and other expenses led to the increase of sales expense ratio by 11.1pct to 6.13% (2020q4 implemented the new income standard and adjusted the transportation expenses in sales expenses to operating costs, resulting in the sales expense ratio of - 5% in this period); Second, the epidemic in 2020 led to the performance in 2020 in the form of low before high, and the net profit base of 2020q4 was high (203 million yuan).
New market expansion has achieved remarkable results, new products continue to be launched, and the company's performance is expected to maintain high growth. In terms of new market expansion, in 2021, the company's products were widely used in the lithium battery industry, and the revenue share of the new energy and new materials industry increased by 2.4pct to 10.3%; The application of the zero discharge treatment system of aggregate wastewater in the aggregate industry has been continuously expanded, and the market application effect is good. The income proportion of the aggregate industry has increased from 1.6pct to 8.7%. In terms of new products, the company's supporting equipment has formed a number of series of products, and some equipment has been mature and can be used in the market; In terms of accessories, in addition to continuing to develop products such as filter sector and filter cloth, the company will also launch products such as plunger pump in the future. The company continues to expand the application of its products in high prosperity tracks such as lithium battery and gravel, and continues to launch new products. The company's performance is expected to maintain a high growth.
Investment suggestion: it is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 862 / 1099 / 1315 million respectively, with growth rates of 33% / 28% / 20% and corresponding PE of 25X / 20x / 16x respectively. Maintain the "buy" rating.
Risk warning: the development of the industry is lower than expected; Industry competition intensifies; Technology substitution in the industry; The market share of the company decreased; The price of raw materials has increased significantly; The market-oriented application of new products is not as expected.
