\u3000\u30 Jinzai Food Group Co.Ltd(003000) 48 Hiconics Eco-Energy Technology Co.Ltd(300048) )
Event: in 2021, the company achieved an operating revenue of 1.204 billion yuan, a year-on-year increase of – 4.17%, a net profit attributable to the parent company of 50 million yuan and a turnaround from loss to profit (a loss of 515 million yuan in the same period of 20 years). In 2022q1, the company achieved an operating revenue of 319 million yuan, a year-on-year increase of + 13.41%, and a net profit attributable to the parent company of 11 million yuan, a year-on-year increase of + 4.87%.
The divestiture of non core business was completed, and the main business of frequency converter increased steadily. In 2021, based on the consideration of the company’s future development strategy and synergy, the company stripped 11 subsidiaries, excluding the impact of ion stripping companies on the company’s annual revenue + 32.62% year-on-year.
High voltage frequency converter: in 21 years, the company’s revenue of high-voltage frequency converter was 722 million yuan, a year-on-year increase of + 32.23%, and the new order amount of high-voltage frequency converter was 659 million yuan, a year-on-year increase of + 15.38%, with a stable leading position. Low voltage frequency converter: the annual revenue of low-voltage frequency converter was 258 million yuan, a year-on-year increase of + 22.40%. The company’s low-voltage products are in the leading position in the subdivided industries such as elevator and material elevator. In the future, the company will also focus on injection molding, HVAC, punch and other industries to accelerate the domestic substitution process of low-voltage frequency converters.
Energy conservation and environmental protection business: the revenue of energy conservation and environmental protection business was 106 million yuan, a year-on-year increase of + 54.31%. The agricultural photovoltaic power generation project independently operated by the company generated 749672mwh in 21 years, realizing an income of 647711 million yuan.
New energy business: the annual revenue reached 54 million yuan, a year-on-year increase of – 59.23%, mainly because the company’s original new energy vehicle charging pile, vehicle leasing and other businesses were basically stripped in 21 years. In the future, the company’s new energy related businesses will be distributed to energy storage and photovoltaic products.
In terms of regions, the company has increased the promotion of overseas markets and adhered to the internationalization strategy. In the past 21 years, the company’s domestic and foreign revenue was -4.61 / + 5.44% year-on-year respectively.
Backed by Midea Group Co.Ltd(000333) big tree, the platform advantage promotes the improvement of efficiency. Under the pressure of chip shortage and sharp price rise of IGBT and other electronic components, relying on Midea’s 100 billion level procurement platform, the company achieved a steady decline in procurement costs. In 2021, the gross profit margin was 30.17%, year-on-year + 10.31pct, Q4 gross profit margin was 26.66%, year-on-year + 17.12pct, and the profitability was significantly improved. The gross profit margin of 22q1 was 26.35%, with a year-on-year decrease of -5.53pct, with a slight decline in the ring ratio.
In terms of products, the gross profit margin of high-end manufacturing / energy conservation and environmental protection / new energy business in 21 years was 28.8/39.2/26.1% respectively, with a year-on-year increase of + 9.61 / – 1.28 / + 22.56pct respectively.
From the change of expense rate, the company’s sales / management / R & D / financial expense rate in 21 years was 12.2 / 8.3 / 5.4 / 0.6%, respectively – 3.46 / + 0.57 / – 1.93 / – 0.67pct year-on-year, and the expense rates of Q4 were – 14.1 / + 0.9 / – 5.1 / + 0.3pct year-on-year. The decrease of sales and R & D expenses in 21 years was mainly due to the significant reduction of consolidation scope caused by the disposal of subsidiaries in 21 years, while the decrease of financial expenses was due to the company’s repayment of bank loans, In 21 years, the company’s interest expenditure was 9.3 million yuan, with a year-on-year decrease of 12.24 million yuan. 22q1 various expense rates were – 7.5 / – 0.3 / + 1.7 / – 0.9pct year-on-year respectively.
The company divested its loss making business and focused on its main business. After more than one year of transformation since Midea’s acquisition, the company has reduced costs and increased efficiency in an all-round way from the change of core management, corporate culture, incentive mechanism, procurement & R & D coordination and automatic production line transformation. In 21 years, the company achieved a net interest rate of 3.97% and Q4 net interest rate of 5.28%, fully turning losses into profits. 22q1 net interest rate was 3.80%, year-on-year + 1.72pct.
The group is empowered to make overall planning and actively layout new energy business. The company has undertaken the overall planning and implementation of Midea Group Co.Ltd(000333) green power project. The group plans to reach 30% of green power by 2030, which will bring huge optical storage business opportunities to the company. The company’s household energy storage products have obtained qualifications overseas. We believe that with the help of Midea’s global channels, Hekang household energy storage products are expected to be rapidly promoted at home and abroad. At the same time, Midea has provided sufficient financial support for the company, which can significantly improve the company’s asset liability structure and have broad development space in the future.
Profit forecast and investment rating: we expect the company’s revenue from 2022 to 2024 to be RMB 1.75225744088 billion, with a growth rate of 45.5/46.9/58.8%; The net profit attributable to the parent company was 100 / 183 / 298 million yuan, with a year-on-year growth rate of 98.9 / 82.9 / 63.2%; Corresponding to pe67 6/37.0/22.7。 Maintain the “buy” rating.
Risk factors: the launch of energy storage products was less than expected, the development of overseas markets was less than expected, and the epidemic affected the commencement of real estate, resulting in the company’s inverter orders less than expected
