\u3000\u30 Xuchang Ketop Testing Research Institute Co.Ltd(003008) 28 Tianjin Ruixin Technology Co.Ltd(300828) )
Core view
The company released the annual report of 2021: the annual revenue was 575 million yuan, a year-on-year increase of + 55.91%; The net profit attributable to the parent company was 75.7 million yuan, a year-on-year increase of + 15.14%; The net profit deducted from non parent company was 71.01 million yuan, a year-on-year increase of + 19.80%; The net cash flow from operating activities was 69.69 million yuan, a year-on-year increase of – 89.98%. The company achieved a revenue of 172 million yuan in 21q4, a year-on-year increase of + 70.37% and a month on month increase of + 13.91%; The net profit attributable to the parent company was 21.32 million yuan, a year-on-year increase of + 8.03% and a month on month increase of – 8.33%; The net profit deducted from non parent company was 20.42 million yuan, with a year-on-year increase of + 31.51% and a month on month increase of – 7.92%.
Production and sales: in 2021, the company produced 1560744 tons of industrial precision aluminum alloy parts and components, a year-on-year increase of + 35.26%; The sales volume was 1540429%, a year-on-year increase of + 39.48%; The inventory was 346406%, a year-on-year increase of + 44.55%; The growth of production and sales volume is mainly due to the fact that the capacity of Changshu plant is in the stage of capacity climbing in 2021 after it is put into operation in 2020.
By product: in the composition of the company’s operating revenue in 2021, power electronic radiators accounted for 48.12%, automobile lightweight parts accounted for 22.84%, precision parts of automation equipment and medical equipment accounted for 18.13%, and other businesses accounted for 10.91%. Among them, in the field of power electronic radiator, the company has focused on the development of power electronic radiator and related precision aluminum alloy components for wind, light, storage and electronic control system of new energy vehicles, which has become a new driving force for the growth of power electronic radiator products. The sales revenue in 2021 was + 37.95% year-on-year; In the field of automotive lightweight components, the company continued to strengthen the technical research and development and customer development of new energy vehicle battery box, water-cooled drive motor housing, power management system radiator and other products, with a year-on-year sales revenue of + 75.26% in 2021.
The company has a leading edge in the field of power electronic radiator, focusing on the development of new energy demand. The company is one of the first enterprises in China to set foot in the R & D and production of precision aluminum alloy radiator, and has mastered a variety of high-power tooth radiator manufacturing processes. At present, the company has production bases in Tianjin and Changshu, with a total annual production capacity of about 30000 tons. Ruixin Changshu, a wholly-owned subsidiary, is a raised investment project for the IPO in 2020. It is mainly to undertake customers in the Yangtze River Delta. After it is put into operation in 2020, the production capacity is in the process of gradual release. Relying on the original leading position of power electronic radiator in the field of industrial frequency conversion and energy saving, the company is expected to make major breakthroughs in the fields of wind, light, storage and new energy vehicles in the future and realize the rapid growth of production and sales scale.
Risk warning: the production climbing progress of the new project does not meet the expectation; Risk of decline in unit product processing fee.
Investment suggestion: for the first time, give a “buy” rating.
It is estimated that the company’s revenue from 2022 to 2024 will be 903 / 1170 / 1457 million yuan respectively, with a year-on-year growth rate of 57.2% / 29.5% / 24.6%; The net profit attributable to the parent company was 112 / 146 / 183 million yuan respectively, with a year-on-year growth rate of 47.5% / 30.7% / 25.1%; Diluted EPS is 1.01/1.32/1.66 yuan respectively, and the corresponding PE of the current stock price is 23 / 18 / 14x. Considering that the company has a leading edge in the field of precision aluminum alloy radiator in China, it is currently focusing on the development of the demand in the fields of wind, light, storage and new energy vehicles, and is expected to maintain a rapid growth rate in the field of automotive lightweight parts. The terminal market space is broad. The company has strong growth in the future. It is covered for the first time and is rated as “buy”.
