\u3000\u3 Guocheng Mining Co.Ltd(000688) 777 Zhejiang Supcon Technology Co.Ltd(688777) )
The industry boom is upward and the “buy” rating is maintained
As a leader in the field of Intelligent Manufacturing in the process industry, the company is expected to benefit from the high boom of intelligent manufacturing and expand its leading edge. We maintain the original profit forecast and add the profit forecast for 2024. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 737, 938 and 1206 million yuan, and the EPS will be 148, 1.89 and 2.43 yuan / share. The current share price corresponds to 41.9, 32.9 and 25.6 times of PE, maintaining the “buy” rating.
Event: the company released its 2021 annual report, and its revenue grew rapidly
The company released its 2021 annual report. In 2021, the company realized an operating revenue of 4.519 billion yuan, a year-on-year increase of 43.08%; The net profit attributable to the parent company was 582 million yuan, a year-on-year increase of 37.42%. The rapid growth of the company’s revenue is due to the high prosperity of the intelligent manufacturing industry on the one hand, and the continuous expansion of the company’s product leading edge and the continuous improvement of the market share on the other hand. In 2021, the Chinese market share of the company’s DCS products reached 33.8%, the Chinese market share of APC software reached 28.6%, ranking first, and the Chinese market share of SIS reached 25.7%, ranking second.
Automation and industrial software businesses are flying together, and overseas business growth is bright
In 2021, the company’s automatic control system realized an operating revenue of 2.742 billion yuan, a year-on-year increase of 33.2%. It is mainly due to the further strengthening of the company’s competitiveness in petrochemical, chemical and other advantageous fields, and the rapid improvement of its competitiveness in pharmaceutical, food, building materials, electric power and other industries. Industrial software achieved an operating revenue of 871 million yuan, a year-on-year increase of 63.4%, mainly due to the continuous enrichment of the company’s industrial software product system and the continuous expansion of applications in new materials, new energy, pharmaceutical and food industries. The company’s overseas business achieved a revenue of 184 million yuan, with a year-on-year increase of 53.8%. Saudi Aramco and other high-end international customers developed smoothly, which is expected to further improve the company’s overseas brand awareness and boost the high growth of performance.
The penetration rate of intelligent manufacturing has broad room to improve, and its stake in PCCW is expected to expand its leading edge
According to the statistics of the two integration service platform of the Ministry of industry and information technology, the readiness rate of enterprise intelligent manufacturing in China was only 11.3% in the fourth quarter of 2021, and there is still much room for penetration improvement in the future. In February 2022, the company announced the acquisition of 22% equity of Sinopec Yingke with 561 million yuan. PCCW has many years of technology accumulation and implementation experience in petroleum, chemical industry, oil and gas industry know-how, operation digital technology, process mechanism model, etc. We believe that taking a stake in PCCW is expected to help the company realize industrial chain coordination and further expand its leading edge in the field of process industry.
Risk tip: the penetration of intelligent manufacturing is less than expected; Localization is less than expected; The company’s R & D was less than expected.
