\u3000\u30 Jinzai Food Group Co.Ltd(003000) 07 Hanwei Electronics Group Corporation(300007) )
Event:
The company released the performance forecast for the first quarter of 2022. In Q1 of 2022, the net profit attributable to the parent company was 486593 million yuan - 528905 million yuan, with a year-on-year increase of 15% - 25%; The net profit was RMB 35.205 million, with a year-on-year increase of - 30.251% - 32.051%.
Our comments are as follows:
1. Affected by the epidemic, the performance in the first quarter was lower than expected, and the growth rate was actively expected to pick up
The median growth rate of the company's net profit attributable to its parent company in the first quarter of 2022 was 20%, which was lower than expected. The main reason was that in the first quarter, the epidemic spread in many places across the country, the shipment of some sensors and intelligent instrument products of the company was affected to a certain extent, the implementation and acceptance of some contracts and Internet of things projects were delayed, and the business development of some subsidiaries in sealed areas such as Shanghai was greatly affected. We believe that the short-term epidemic factor has an adverse impact on the company's operation, which is expected to gradually subside in the second quarter. We look forward to the recovery of the company's performance growth after the normalization of operation.
2. The company's sensor business has developed steadily and opened up room for growth in the field of household appliances and automobiles
The company is a leading enterprise of gas sensors, and the sales revenue of metal oxide semiconductor, catalytic combustion and electrochemical sensors has maintained a stable growth. The company's products have obvious advantages in the field of security and environmental protection, and have achieved market breakthroughs in the field of home appliances and automobiles: the field of home appliances has been successfully shortlisted as Gree, Midea, Huawei, Xiaomi and other well-known enterprises to achieve mass supply; Vehicle products have passed iatf16949 certification and obtained fixed-point orders from vehicle enterprises. With the gradual release of performance in the field of household appliances and automobiles, the company's sensor product revenue and profit scale are expected to continue to grow rapidly.
3. The intelligent instrument business benefited from the implementation of the new safety law and fully grasped the market opportunities
Domestic substitution in the field of intelligent instrument industry ushers in an opportunity. At the same time, with the introduction of the new gas safety production law, gas safety will become a consensus of rigid demand. Under the background of low overall gas instrument installation penetration, the implementation of the new safety law may significantly increase the installation demand of gas instruments in recent 2-3 years, which is expected to drive the continuous and high growth of corresponding products of the company. In the first quarter of 2022, the company's intelligent instrument business achieved significant performance growth in gas safety, industrial safety and other fields.
4. Internet of things solutions continue to develop steadily, benefiting from the construction of smart cities
The company's business is deeply laid out in smart cities / underground comprehensive pipe galleries such as water supply / drainage, environmental protection, heat supply and gas, and the industry recognition and business capacity continue to improve: 1) the market share of smart gas in large gas customers has been further improved; 2) Significant progress has been made in developing new customers in the field of intelligent security; 3) Steady growth was achieved in the implementation of projects and new orders in the field of smart water. The company will deeply benefit from the construction of smart city / smart pipe gallery, and the corresponding business is expected to achieve sustained and rapid growth.
Profit forecast and investment suggestions:
Focusing on the sensor and instrument business, the company continues to expand its layout through endogenous extension, and develops its business following the needs of the industry. With the sustained high prosperity of the Internet of things industry, the company is expected to benefit from deepening the traditional business layout and expanding new business areas. Affected by the epidemic, the net profit attributable to the parent company in 22-23 years was adjusted to be 355 million yuan and 462 million yuan respectively (the original value was 370 million yuan / 480 million yuan), corresponding to 16 times the P / E ratio in 22 years and 12 times the P / E ratio in 23 years, maintaining the "buy" rating.
Risk warning: the risk of the development of new business areas of sensors is less than expected, the installation progress of gas instruments is less than expected, the market competition is fierce, and the performance express is the preliminary calculation result. The specific financial data shall be subject to the annual report disclosed by the company
