\u3000\u3 Guocheng Mining Co.Ltd(000688) 187 Zhuzhou Crrc Times Electric Co.Ltd(688187) )
The performance in 21 years is in line with expectations. On March 29, the company released its 2021 annual report. The company’s main revenue was 15.121 billion yuan, a year-on-year increase of – 5.69%. The net profit attributable to the parent company was 2.018 billion yuan, a year-on-year increase of – 18.49%; Deduct non net profit of RMB 1.525 billion, a year-on-year increase of – 18.56%. The gross profit margin was 33.74%, year-on-year -3.48pct, and the net profit margin was 13.46%, year-on-year -2.11pct. In Q4 of 2021, the company’s main revenue in a single quarter was 6.595 billion yuan, a year-on-year increase of + 7.16%; The net profit attributable to the parent company in a single quarter was 815 million yuan, a year-on-year increase of – 16.65%; The non net profit deducted in a single quarter was 646 million yuan, a year-on-year increase of – 9.78%.
Comments: 1) the change in operating income is mainly due to the reduction of investment budget by China Railway Group, resulting in a year-on-year revenue of rail transit equipment business of -1.639 billion yuan. The change of net profit attributable to parent company is mainly due to the decline of operating income in the current period and the decline of overall gross profit caused by the change of product sales structure. 2) In 2021, the operating revenue of Beijing Emerging Eastern Aviation Equipment Co.Ltd(002933) products of the company was 2.572 billion yuan, a year-on-year increase of + 35.31%. Among them, the revenue of power semiconductor devices was 1.068 billion yuan, a year-on-year increase of + 33.26%; Industrial converter income was 528 million yuan, a year-on-year increase of + 30.58%; The revenue of electric drive system of new energy vehicles was 456 million yuan, a year-on-year increase of + 171.32%; The revenue of marine engineering equipment was 291 million yuan, a year-on-year increase of – 10.63%; The revenue of sensor parts was 230 million yuan, a year-on-year increase of + 13.74%. Among them, IGBT is delivered in batches in the field of rail transit and power grid, with the first share in China. The number of devices delivered in the field of new energy vehicles and new energy power generation increased significantly throughout the year. The annual sales volume of electric drive of passenger cars ranked among the top ten in the industry for the first time. The total number of sensors delivered throughout the year increased significantly. The mine card electric drive system, wind power converter and central air conditioning converter shall be delivered in batches continuously. Mine card driverless system successfully passed the examination. A number of new orders have been signed for offshore equipment in the Chinese market. The gradual release of IGBT phase II chip capacity ensures the timely delivery of semiconductor products. It will fully amplify the technical advantages of the company’s vehicle specification level high current density fine grooved gate IGBT, ensure the autonomy, safety and controllability of Shanxi Guoxin Energy Corporation Limited(600617) automobile high-power semiconductor, and enhance the voice of domestic devices in the field of automobile high-power semiconductor. 3) The sales expense was 1.05 billion, a year-on-year increase of – 5.18%, the management expense was 813 million, a year-on-year increase of + 6.87%, and the financial expense was – 74 million, a year-on-year increase of – 256521%. The change in sales expenses is mainly due to the year-on-year decrease in revenue and the year-on-year decrease in the provision for product quality assurance. The change in administrative expenses is mainly due to the increase in employee compensation caused by the reduction of social security during the epidemic in the same period of last year, the resumption of normal payment in this period and the increase of management personnel. Changes in financial expenses were mainly due to the year-on-year increase in interest income from certificates of deposit. 4) The R & D expenditure of this year was RMB 1.690 billion, with a year-on-year increase of + 0.19%, and the R & D investment accounted for 11.81%, with a year-on-year increase of + 0.25pct. 558 intellectual property rights were obtained, including 293 invention patents. The company has a group of talents who master the core technology, high-end skills and operation management of the industry. The professional background involves many fields, such as mechanical electronics, electrical engineering, automatic control, power electronics, materials and so on. Among them, the R & D team is led by academicians of the Chinese Academy of engineering, and there are more than 2728 R & D personnel, accounting for 35.28% of the total number. More than one third have graduate and above education, and 96.48% have bachelor’s degree or above. The excellent talent team has laid a solid foundation for the company to form key core technologies and maintain technical advantages. 5) Based on “two rails”, the company has arranged diversified industries around “technology” and “market”, and has formed a complete industrial chain structure of “basic devices + devices and systems + complete machine and Engineering”. At present, the company has cut into the fields of industrial converter products, new energy vehicle electric drive system, sensor parts, marine equipment and so on, opening up the growth space.
Profit forecast: considering the downstream prosperity and the company’s fundamentals, we adjusted the profit forecast. Affected by the decline of the company’s performance in 2021, the net profit attributable to the parent company is expected to change from 2.638 billion and 2.824 billion to 2.526 billion and 2.868 billion in 20222023, 3.135 billion in 2024, and 28, 24 and 22x in 20222024.
Risk tips: intensified industry competition, macroeconomic changes and cyclical fluctuations in downstream industries, and the progress of new product development is less than expected
