\u3000\u30 Shaanxi Zhongtian Rocket Technology Co.Ltd(003009) 79 Huali Industrial Group Company Limited(300979) )
In the 21st year, the income was 17.47 billion yuan, an increase of 25.4% and the net profit attributable to the parent company was 2.768 billion yuan, an increase of 47.3%
According to the company's annual report, the revenue in 2021 was 17.47 billion yuan, an increase of 25.4% (an increase of 34.1% after excluding the exchange rate). The growth was mainly due to: 1) the significant growth of revenue from major customers; 2) ASICs, on and new balance orders of new customers have been mass produced and shipped. The revenue and growth rate of 21q1-q4 were 3.7 billion (+ 7.8%), 4.492 billion (+ 28.5%), 4.44 billion (+ 31.5%) and 4.835 billion (+ 33.5%) respectively. The net profit attributable to the parent company in 21 years was 2.768 billion yuan, an increase of 47.3% (an increase of 57.6% after excluding the exchange rate), which was higher than the revenue, mainly because the company continued to implement the strategy of high-quality key customers and optimize the structure of customers and products; At the same time, actively promote automation and lean production, improve production efficiency, and increase the gross profit margin compared with 2020. From Q1 to Q4, the net profit attributable to the parent company and the growth rate were 577 million (+ 42.3%), 714 million (+ 93.2%), 707 million (+ 30.1%) and 771 million (+ 37.4%) respectively.
The company's profit distribution plan for 2021 is to distribute cash dividends of 11 yuan (including tax) to all shareholders for every 10 shares, with a total cash dividend of 1.284 billion yuan (including tax), accounting for 46.4% of the net profit attributable to the parent company. The top five customers accounted for 91.6% of the revenue, and deeply cultivated high-quality customers to improve the sales share
In 2021, the revenue of the company's top five customers totaled 16.010 billion yuan, accounting for 91.6% of the total, with an increase. Among them, the annual sales revenue of customers is 6.181 billion yuan, accounting for 35.4% of the total; The sales revenue of customer II was 3.763 billion yuan, accounting for 21.5% of the total; The sales revenue of customers 3.208 billion yuan, accounting for 18.4% of the total; The sales revenue of customer 4 is 1.893 billion yuan, accounting for 10.8% of the total; The sales revenue of customer 5 was 965 million yuan, accounting for 5.5% of the total.
On the one hand, the company continues to strengthen its own development and design capacity, rapid production and delivery capacity and other competitive advantages, and deeply cultivate the original high-quality customers; On the other hand, actively expand new customers. On, ASICs and new balance have started mass production and shipment in 2021.
The gross profit margin continued to improve, the cost control was good, and the profitability was significantly improved
In 2021, the company's gross profit margin was 27.2%, with a year-on-year increase of 2.4pct. The cost control was in good condition, and the cost rate during the period decreased by 2.2pct to 5.4% year-on-year. The terminal profitability of the company has been improved. The net interest rate attributable to the parent company in 2021 was 15.8%, with a year-on-year increase of 2.4pct.
Continue to expand production, digest incremental orders, strengthen automation and lean production, reduce costs and increase efficiency
The company continued to expand its production capacity through new factories, expansion of factories and the implementation of lean production. In 21 years, three new factories were put into operation and quickly realized the ramp up of production capacity. The production capacity increased from 180 million pairs to about 220 million pairs by the end of 2020, the output was about 210 million pairs, and the capacity utilization rate increased by 4.95 PCT to 95.9% year-on-year. In the future, the company will continue to build new factories in northern Vietnam, Indonesia and Myanmar to digest incremental orders.
Maintain profit forecast and give buy rating. Under the background of the normalization of global epidemic control and the obvious recovery trend of sports economy, we continue to be optimistic about the stability of Huali's production capacity, strong new product development and rapid response ability, and the increase of orders in the future can be expected; At the same time, with the continuous optimization of the company's customers and product structure, the profitability may maintain steady growth. We expect that the company's EPS in 202224 will be 2.9, 3.6 and 4.5 yuan / share respectively, and PE will be 25.4, 20.7 and 16.5 times respectively.
Risk tips: orders are less than expected, costs and expenses increase, overseas epidemics are repeated, capacity expansion is less than expected, and capacity utilization is less than expected.
