\u3000\u3 Guocheng Mining Co.Ltd(000688) 305 Kede Numerical Control Co.Ltd(688305) )
Event: on April 11, 2022, the company issued the 2021 annual report. In 2021, the company’s main business income was 254 million yuan, a year-on-year increase of 27.99%. The net profit attributable to the shareholders of the listed company was 728669 million yuan, a year-on-year increase of 106.81%, and the gross profit margin of the main business was 43.14%.
Comments:
The revenue of high-end machine tool business maintained a high growth, and the net profit attributable to the parent company increased by 106.81%. In 2021, the company’s main business income was 254 million yuan, with a year-on-year increase of 27.99%. The company produced 158 complete machines, with a year-on-year increase of 56.44%. The company realized a net profit attributable to the parent company of 73 million yuan, a year-on-year increase of 106.81%. In 2021, the gross profit margin and net profit margin of the company were 43.14% and 28.71% respectively, significantly higher than 42.15% and 17.7% in 2020. Affected by the product structure, the company’s gross profit margin declined in the third quarter. In the fourth quarter, the company’s gross profit margin rebounded to 43.97%, and the annual gross profit margin increased compared with last year. In 2021, the company overcame the impact of the epidemic and the rise in the price of raw materials, and the net interest rate deducted from non parent company was about 10.38%, slightly higher than that in 2020.
Strong demand and steady progress in capacity expansion. In 2021, the demand in both military and civil fields remained high. Aerospace customers accounted for nearly half of the new orders in 2021, and orders in mechanical equipment, automobile, mould, cutting tool and other industries accounted for an important share. In 2021, the company obtained a large number of new customers, mainly civil customers, indicating that the use tendency of five axis linkage machine tools in the civil field is gradually increasing. With the competitive advantage of leading technology and increasingly prominent brand effect, the company has a high repurchase rate of new orders in 2021, and the repurchase rate of the whole machine has reached more than 40%. In the first quarter of 2022, the company’s new orders continued to grow significantly. Under the epidemic and economic pressure, the company still maintained sufficient new orders on hand by relying on the stable demand of military industry and the continuous penetration of civil industry. In 2021, the company used the raised funds to significantly increase the production capacity, and established an electric spindle production base in Yinchuan, with an annual output of 400 pieces expected. In 22 years, the company plans to continue to raise funds to expand production, add flexible automatic production lines and improve the overall machining production capacity, so as to improve the production capacity of machine tools and core functional components.
Attach importance to R & D and continue to expand downstream applications. The company’s R & D expenditure in 2021 was 77.58 million yuan, accounting for 30.59% of the total operating revenue. It has completed a number of national and provincial projects. It is expected that a variety of models such as horizontal boring and milling machining center will be launched in 2022. In addition to achieving batch “import substitution” in aerospace, military industry and other industries, the company has also made breakthroughs in the fields of automobiles, mechanical equipment, molds, cutting tools, energy, electronics, schools, semiconductor wafer thinning machines, environmental protection equipment, pumps and valves in petrochemical industry, and continuously expanded downstream applications. During the reporting period, the company’s flexible automatic production line business obtained four orders. In the future, the company’s flexible automatic production line business will widely cover automobile, military industry, mechanical equipment, precision molds and other industries, and become one of the company’s important businesses.
Profit forecast and investment rating: we predict that the net profit from 2022 to 2024 will be 109 million yuan, 161 million yuan and 204 million yuan respectively, and the corresponding EPS will be 1.20 yuan / share, 1.77 yuan / share and 2.24 yuan / share respectively, corresponding to 54 times, 36 times and 29 times of the current share price PE respectively. Maintain the company’s “buy” rating.
Risk factors: deterioration of macro environment; The epidemic control was not as expected; The financing situation was less than expected.
