\u3000\u3 Guocheng Mining Co.Ltd(000688) 789 Hangzhou Honghua Digital Technology Stock Company Ltd(688789) )
Hangzhou Honghua Digital Technology Stock Company Ltd(688789) disclose the annual report of 2021. The annual revenue was 943 million yuan (+ 31.74%), the net profit attributable to the parent company was 227 million yuan (+ 32.38%), and the net profit not attributable to the parent company was 211 million yuan (+ 32.48%). In the fourth quarter, the single quarter revenue was 240 million yuan (- 13.6%), the net profit attributable to the parent was 63.53 million yuan (- 2.4%), and the net profit not attributable to the parent was 50.32 million yuan.
Ink grows much faster than equipment, confirming the dual wheel drive logic of equipment and consumables. In 2021, the company produced 950 sets of digital inkjet printing equipment and sold 833 sets, with a production and sales rate of 87.7%, and the output and sales increased by 29% / 35% respectively; In terms of ink, the company produced 619692 tons and sold 524238 tons, with a year-on-year increase of 74% / 89% respectively. The growth rate of ink production and sales of the company is much higher than that of equipment, which reflects the driving effect of the company's increasing market share in the digital printing equipment market in the past on ink, and once again confirms the business logic of equipment + consumables. The company's production and sales in the fourth quarter may be affected by downstream power and production restriction, resulting in large fluctuations in a single quarter.
The company disclosed the fixed increase plan. The proposed capital raised in this offering will not exceed 1 billion yuan, and the issue price is 80% of the average price in the 20 trading days before the pricing date. The investment direction of the project is 1) an annual output of 3520 sets of industrial digital spray printing intelligent production lines; 2) Replenish working capital. This fixed increase project represents the company's optimistic expectation that the digital printing market will continue to replace traditional printing and the industry will flourish in the future, which can greatly expand the company's production capacity and explore downstream markets other than printing, such as packaging, signs, building materials, electronics and so on. In 2021, the company achieved 950 sets of digital printing equipment and 833 sets of sales volume. At the time of IPO, the project raised and invested by the company was an intelligent chemical plant with an annual output of 2000 sets of industrial digital printing equipment and consumables. At present, the plant acceptance has been completed, underground pipeline construction and public works construction are being carried out, and the production equipment has also entered the commissioning stage. The company's IPO raised investment project is combined with this fixed increase project, which we believe will ensure sufficient production capacity of the company's equipment and consumables in the next few years and provide momentum for the continuous expansion of the company's market share.
Risk warning: the impact of the epidemic on the macro-economy exceeded expectations; The production and sales of the company were lower than expected.
Investment suggestion: adjust the profit forecast and maintain the "buy" rating. Considering the uncertainty of the epidemic on downstream production, we lowered the net profit forecast for 22-23 years from 350 million and 530 million yuan to 320 million and 490 million yuan, and increased the profit forecast for 2024 by 667 million yuan. The impact of the epidemic is short-term. In the long run, digital printing is still the tide of textile supply chain reform. Maintain the "buy" rating.
