\u3000\u3 Guocheng Mining Co.Ltd(000688) 063 Pylon Technologies Co.Ltd(688063) )
Core conclusion
Event: the company released the 21st Annual Report. In 2021, the company achieved an operating revenue of 2.063 billion yuan, a year-on-year increase of 84.14%; The net profit attributable to the parent company was 316 million yuan, a year-on-year increase of 15.19%. Among them, Q4 achieved a revenue of 768 million yuan in 2021, an increase of 146.38% year-on-year and 25.23% month on month; The net profit attributable to the parent company was 65 million yuan, a year-on-year decrease of 16.72% and a month on month decrease of 32.78%. The performance is in line with expectations.
The production and sales volume of the company increased, and the main revenue increased rapidly. In 2021, the revenue of the company’s energy storage industry was 1.988 billion yuan, a year-on-year increase of 90%, and the gross profit margin was 29.73%, a year-on-year decrease of 13.92 PCT. Thanks to the vigorous development of the energy storage market and the company’s investment and deep cultivation in the energy storage industry for many years, the production line of the company’s raised investment projects contributed to part of the production capacity in 2021, resulting in a significant increase in the company’s production and sales volume. The domestic operating revenue increased by 120.39% year-on-year and the overseas operating revenue increased by 76.95% year-on-year.
The profitability of the company has been improved and the control fee has decreased steadily. In 2021, the gross profit margin of the company’s sales was 30.03%, a year-on-year decrease of 13.49pct; The net profit margin on sales was 15.33%, a year-on-year decrease of 9.18pct. In 2021, the company’s sales expense ratio was 1.75%, with a year-on-year decrease of 0.26pct; The financial expense ratio was – 0.62%, with a year-on-year decrease of 2.75pct, mainly due to the increase of interest income; The management expense ratio (excluding R & D expenses) was 3.07%, down 1.01pct year-on-year, mainly because the company invested heavily in R & D projects and expanded to R & D teams, resulting in the increase of R & D personnel, direct investment in R & D projects and product testing and certification expenses. In 2021, the company’s expense ratio (excluding R & D expenses) for the three major periods totaled 4.21%, a year-on-year decrease of 4.00pct. Overall, the rise in the price of upstream raw materials has suppressed profits, resulting in the limitation of the company’s profitability.
Investment suggestion: it is estimated that the company will achieve a revenue of 4.234/74.47/9.618 billion yuan from 2022 to 2024, and a net profit attributable to the parent company of 6.14/11.11/1.673 billion yuan, a year-on-year increase of + 94.3% / + 80.8% / + 50.6%, corresponding to EPS of 3.97/7.17/10.80 yuan respectively.
Risk tip: the relationship between supply and demand of raw materials continues to be tense, the supply of overseas chips is insufficient, and the covid-19 epidemic situation intensifies.
