\u3000\u3 Guocheng Mining Co.Ltd(000688) 777 Zhejiang Supcon Technology Co.Ltd(688777) )
In 2021, the performance increased rapidly, and the indicators of inventory and contract liabilities increased steadily. In 2021, the company achieved a revenue of 4.519 billion yuan (+ 43.08%), a net profit attributable to the parent company of 589 million yuan (+ 37.10%), and a net profit deducted from non attributable to the parent company of 449 million yuan (+ 38.36%), which is basically consistent with the express report. The company's net cash flow from operating activities was 141 million yuan, a year-on-year decrease. Mainly due to the more than doubling of cash for purchasing goods, the increase of raw materials in inventory by 300 million, and the increase of personnel salary expenditure. In 2021, the company's inventory reached 3.035 billion yuan (+ 46%), mainly composed of raw materials and issued goods, and both increased significantly. Contract liabilities reached 2.419 billion yuan (+ 27%).
The market share of core products continued to increase. The company's market share of DCS products in China has increased to 33.8% in 21 years and 28.5% in 20 years, ranking first in China's DCS market share for 11 consecutive years. Among them, the market share of chemical industry reaches 51.1%, and that of petrochemical industry reaches 41.6%; The market share of SIS system reached 25.7%, ranking second; Advanced process control software (APC) ranks first in China with a market share of 28.6%.
Other industries of control system performed well, and industrial software grew rapidly. From the perspective of the company's products, the revenue of automatic control system is 2.742 billion yuan (+ 33.2%), which is the sum of control system and control system + instrument; It mainly benefited from the increase of share and the rapid improvement of competitiveness in pharmaceutical, food, building materials, electric power and other industries. Industrial software revenue is 871 million yuan (+ 63.4%), which is the sum of industrial software and control system + software; The main reason is that the company's products have been further enriched, forming seven categories of industrial software systems, including real-time database, digital twin, production management, process optimization, production safety, asset management and supply chain management, with a total of 218 industrial app application development. The instrument business revenue was 516 million yuan (+ 44.2%), mainly due to the breakthrough of key customers and suppliers and the expansion of market share.
The "ground penetration" of 5S stores has yielded results, and overseas growth can be expected. The company continues to expand the scale of 5S stores, of which the number of single stores with an income of more than 50 million yuan has increased from 16 to 33. Through 5s stores in six regions in China, the company achieved precision marketing. In 2021, it won many large-scale projects such as Yulong Petrochemical ten million ton oil refining and one million ton ethylene refining and chemical integration project. The contract amount of large projects of more than 10 million yuan increased by 95% year-on-year, and 1724 NEW customers were added. At the same time, the company has further built its overseas localization operation capacity, established Singapore International Operation Center and built a localization operation company. In the past 21 years, the company's overseas business income was 184 million yuan (+ 53.8%), successfully entered the list of qualified suppliers of BASF, realized the formal application of DCS in its production units, and carried out digital transformation cooperation with many customers in many countries.
Risk warning: repeated epidemic situation; The development of intelligent manufacturing is less than expected; Investment in petrochemical and other industries declined.
Investment advice: maintain the "buy" rating. It is estimated that the operating revenue from 2022 to 2024 will be RMB 6.00/77.83/9.797 billion, with growth rates of 30% / 26% / 24% respectively, and the net profit attributable to the parent company will be RMB 757/9.56/1.187 billion, corresponding to 41 / 32 / 26 times of the current PE, maintaining the "buy" rating.
