\u3000\u3 Guocheng Mining Co.Ltd(000688) 330 Shanghai Holystar Information Technology Co.Ltd(688330) )
In 2021, the company’s performance maintained rapid growth. On April 11, the company released its annual report for 2021. In 2021, the company achieved an operating revenue of 1.132 billion yuan, a year-on-year increase of 24.6%; The net profit attributable to the parent company was 413 million yuan, a year-on-year increase of 29.76%; The basic earnings per share was 4.13 yuan, a year-on-year increase of 5.36%. It is proposed to distribute a cash dividend of 12.40 yuan (including tax) for every 10 shares.
The expansion of smart post switches outside the province accelerated, and the revenue of non state grid systems increased significantly. During the 14th Five Year Plan period, the proportion of distribution network investment is expected to rise to about 60%, and the switch space on the intelligent column of distribution network is large. The performance indicators of the company’s primary and secondary fully integrated intelligent column switches are leading the industry. At present, the company has supplied most of the intelligent column switches in Zhejiang Province. In 2021, the company put many products into operation in Jiangsu, Shaanxi, Fujian, Shanxi, Shandong, Henan and other provinces. In 2021, the proportion of the company’s regional revenue except East China increased to nearly 40%, and the contribution of regional performance outside the province is accelerating. In addition, the company actively participated in the development of the South Grid Market and private enterprises in the power industry. In 2021, the company’s Non State Grid customers achieved a revenue of 370 million yuan, a year-on-year increase of 51.77%. The development of customers of the South Grid and private enterprises in the power industry is expected to further improve the company’s performance.
The revenue of distribution network information service increased year-on-year, and the intelligent ring network cabinet is expected to open the second growth curve of the company. The company’s comprehensive strength at the software level is strong, and the proportion of distribution network information service revenue continues to increase. In 2021, the company’s distribution network information service business achieved an operating revenue of 5577.5% Million yuan, with a year-on-year increase of 42.59%. Several information service contracts have been accepted and delivered. In addition to the intelligent column switch business, the company’s intelligent ring network cabinet business is also expected to be industrialized in 2022, and the corresponding industry demand space is huge. The technical barrier of intelligent ring network cabinet is high, which has certain technical homology with the company’s intelligent column switch, and the reusability of channel resources is strong. After the industrialization of the company’s intelligent ring network cabinet, the business is expected to maintain a rapid expansion speed and contribute new performance increment to the company.
Inventory increased significantly year-on-year, showing the company’s positive confidence in production and operation. By the end of 2021, the company’s inventory was 474 million yuan, a year-on-year increase of 55.82%; Among them, the production of intelligent column switches was 27974 sets, with a year-on-year increase of 42.43%, and the inventory was 16920 sets, with a year-on-year increase of 34.46%. Since the company mainly adopts the production mode of “production based on sales and appropriate inventory”, the production department will make appropriate inventory preparation according to the product orders received by the sales department. By the end of 2021, the company’s inventory amount and the inventory of intelligent column switches have increased significantly year-on-year, indicating that the company has released a strong positive signal for subsequent production and operation.
Investment suggestion: we predict that the company’s revenue in 2022 / 23 / 24 will be RMB 1.48/20.1/2.73 billion, and the revenue growth rate will be 30.6% / 35.8% / 35.8%; The net profit attributable to the parent company was 560 / 760 / 1.04 billion yuan, with a growth rate of 35.3% / 36.5% / 36.5%. Corresponding to the closing price on April 11, the company’s valuation in 2022 is 21x. The company is a pioneer in the primary and secondary integration of distribution network intelligence, highly benefiting from the intelligent transformation of distribution network, the dual growth route of regional + category expansion is clear, and the “recommended” rating is maintained.
Risk warning: the risk of concentration of major customers; Risks with high concentration of business areas; Risk of single product structure; The risk of epidemic development exceeding expectations.
