\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 82 Longshine Technology Group Co.Ltd(300682) )
[key points of investment]
The company achieved good results throughout the year and its performance increased rapidly. The company released its 2021 annual report. In 2021, it achieved a revenue of 4.639 billion yuan, a year-on-year increase of 36.98%. In the whole year, the net profit attributable to the parent company was 847 million yuan, a year-on-year increase of 19.77%, and the deduction of non net profit was 723 million yuan, a year-on-year increase of 23.83%; The net operating cash flow was 164 million yuan, a year-on-year decrease of 57.79%. 21q4 achieved a revenue of 2.458 billion yuan in a single quarter, a month on month increase of + 181.02% and a year-on-year increase of + 25.91%; In Q4, the net profit attributable to the parent company and the net profit deducted from non net profit in a single quarter were 662 million yuan and 571 million yuan respectively. In 2021, the sales expense was 314 million yuan (+ 33.72%), the R & D expense was 572 million yuan (+ 57.48%), and the management expense was 354 million yuan (+ 11.78%).
Seize the industry opportunities and increase the energy digital business. The goal of “double carbon” in 2021 brings valuable opportunities for the development of the industry. The power grid has increased investment in the field of power consumption, benefited from the rising prosperity of the industry, and the company’s energy digital business has achieved rapid growth. During the reporting period, the revenue of energy digital business was 2.371 billion yuan, a year-on-year increase of 34.99%, of which the digital revenue related to power grid increased by about 25% year-on-year. The company continues to develop the core system of power service, fully participates in the construction of pilot projects of marketing 2.0, cooperates with multi provincial power companies to establish energy big data centers in terms of new infrastructure, and undertakes to build multi provincial power acquisition master station system, smart energy service and electric vehicle operation platforms, so as to realize the transformation from marketing to the common development of dual core businesses of marketing and acquisition. The gross profit margin of energy digitization business was 43.97%, down 3.47 PCT, which was due to the increase in the reserve of marketing core version 2.0 pilot and promotion personnel, and the increase of employees in energy digitization sector was more than 25%.
The demand for energy consumption services increased, and the energy Internet business expanded rapidly. In 2021, the company’s energy Internet business achieved a revenue of 848 million yuan, a year-on-year increase of 43.58%. The cumulative service users of the energy Internet service platform exceeded 390 million and the service industry institutions exceeded 7000. Among them, the cumulative number of service users of living payment business exceeds 350 million, the number of daily living users exceeds 13 million, and more than 5300 Public Service Payment institutions are connected. The aggregate charging business has achieved rapid growth, and has been connected to the platforms of head operators such as Guodian, China Southern Power, special call, star charging and cloud fast charging. By the end of 2021, more than 400 charging operators have been connected, with more than 320000 charging piles in operation, more than 2.1 million new energy charging EMUs in service, and the annual aggregate charging capacity is nearly 560 million kwh, nearly 8 times that of 2020, The revenue model is expanded from single service fee sharing to service fee + pre purchase power mode. “Xinyao photovoltaic cloud platform” is newly connected to distributed photovoltaic, with a capacity of about 900MW. The gross profit margin of energy Internet business was 52.80%, down 10.42pct, mainly due to the strategies of strengthening market expansion and increasing investment in platform construction. The increase of phased cost expenditure led to the short-term fluctuation of the gross profit margin of this business. However, with the increase of B2B2C platform business volume of energy Internet business, the gross profit margin is expected to rise.
[investment suggestions]
The company is a leading technology enterprise in the energy industry. Seizing the “double carbon” opportunity, the energy digital business and energy Internet business are in the stage of rapid development. It is estimated that from 2022 to 2024, the company’s operating revenue will be 5.890/74.25/9.380 billion yuan respectively, the net profit attributable to the parent company will be 1.062/14.02/1.793 billion yuan respectively, the EPS will be 1.02/1.34/1.71 yuan respectively, and the corresponding PE will be 27 / 20 / 16 times respectively, so it is rated as “overweight”.
[risk tips]
Market competition intensifies, and the market share increases less than the expected risk;
The investment in power grid informatization construction is less than the expected risk;
Aggregate charging business growth is less than expected risk.
