\u3000\u3 China Vanke Co.Ltd(000002) 046 Sinomach Precision Industry Co.Ltd(002046) )
The company issued the 2021 annual report
The operating performance has been greatly improved and the historical burden has been gradually cleared away: in 2021, the company achieved an operating revenue of 3.328 billion yuan, a year-on-year increase of 41%; The net profit attributable to the parent company was 127 million yuan, a year-on-year increase of 105%. Benefiting from the hot demand of downstream aerospace, semiconductor, diamond cultivation and other industries, the revenue of the company’s main products, military bearings and superhard material products, has increased rapidly. In 2021q4, the company accrued an asset impairment loss of 91.36 million yuan, mainly from the civil products bearing business. It is expected that the subsequent impact will be gradually reduced and the company’s performance is expected to be released.
The main business is bearings and superhard materials. The downstream is booming, and the advantages of the company are stable
(1) the company’s military aerospace special bearings are in a monopoly position in the market, and there are sufficient orders at present. In January 2021, the company announced that it would invest in the construction of “Yibin science and Technology Industrial Park (phase I) project” to alleviate the shortage of military bearing capacity, and the revenue is expected to continue to grow during the 14th Five Year Plan period; (2) The hot semiconductor industry drives the growth of the company’s superhard material products business, and the company is expected to realize import substitution by virtue of its technical advantages.
HPHT & CVD develop simultaneously to foster diamond performance growth
(1) under the HPHT method, the company will have a capacity of 200300 sets of hexahedral top presses in 2021, with a gross profit margin of 10-20%. Recently, Henan Province launched the “982” project, and a number of diamond cultivation and industrial diamond production projects were selected. The demand for hexahedral top press has increased significantly, and the price is expected to rise under the gap between supply and demand, driving the improvement of profitability; (2) Under the CVD method, the company has formed more than 100 MPCVD equipment, of which more than 10 are used for R & D and more than 90 are used for production. The gross profit rate of MPD equipment is expected to increase by about 50% after the production of CVD equipment.
Investment suggestion: Sinomach Precision Industry Co.Ltd(002046) ( Sinomach Precision Industry Co.Ltd(002046) . SZ) the downstream demand of the traditional main business is increasing rapidly, and the diamond high growth track is cultivated at the same time. It is expected that the company will realize the net profit attributable to the parent company of RMB 259 / 364 / 516 million from 2022 to 2024, corresponding to the current PE valuation of 22x / 16x / 11x respectively, which is rated as “buy”.
Risk tip: the production of cultivation drilling is less than expected, the competition in superhard material industry is intensified, and the subsidiaries continue to lose money.
