\u3000\u30 Zhongyan Technology Co.Ltd(003001) 14 Zhonghang Electronic Measuring Instruments Co.Ltd(300114) )
Core view
Event: the company released its 2021 annual report. In 2021, it realized a revenue of 1.943 billion yuan (+ 10.39%), and a net profit attributable to the parent company of 307 million yuan (+ 16.95%).
The vehicle inspection revenue declined, but the aviation military products and sensing control business performed well, and the net profit margin increased steadily. In terms of business, 1) the revenue of aviation military products was 498 million yuan (+ 24.22%), which was mainly due to the rapid growth of military production tasks of Hanzhong 101 and the parent company, with a gross profit margin of + 1.62pct to 36.07% year-on-year; 2) The revenue of sensor control business was 103 million yuan (+ 31.22%), which was mainly due to the company's continuous expansion of the application of sensor control products in emerging fields such as consumer electronics, smart logistics and industrial processes, and the rapid growth of sales volume, with a year-on-year gross profit margin of - 1.33pct to 35.07%; 3) The revenue of intelligent transportation business was 359 million yuan (- 31.74%), mainly due to the reduction of contract orders due to the extension of motor vehicle inspection policy cycle, and the gross profit margin was -0.51pct to 45.10% year-on-year. In 21 years, the gross profit margin of the company decreased by 1.54 PCT to 37.33% year-on-year, but the net profit margin increased by 0.84 PCT to 16.28%, mainly due to the optimization of the period expense rate (20.33%, down 2.19 PCTs year-on-year). Among them, the sales expense ratio decreased significantly by 2.97 PCT to 5.40%, which was due to the year-on-year decrease of 66.97% in the advertising and publicity expenses of the subsidiary Shijiazhuang Huayan.
Construction in progress increased significantly, and contract liabilities rebounded month on month. At the end of the 21 year period, the company's projects under construction reached 162 million yuan, with a significant year-on-year increase of 948.11%, mainly due to the increase in investment in intelligent measurement and control industrial park and intelligent transportation (Shijiazhuang) Industrial Park. The company's contractual liabilities at the end of the period were 159 million yuan, a year-on-year decrease of 29.36%, but 76.69% higher than the historical low in the third quarter. Among them, the ending balance of aviation military products was 1.5829 million yuan (year-on-year + 93.18%), sensor control was 139 million yuan (year-on-year + 43.07%), and intelligent transportation was 181568 million yuan (year-on-year - 85.69%).
Both military and civilian efforts promote development and promote the transformation of digital intelligence. During the reporting period, in the field of military products business: the company's hanging and delivery system entered the blue book on the development of aviation emergency rescue mission system. The small piece airdrop lock project of a certain type of aircraft achieved a leap from outside to inside, laying a foundation for the horizontal and vertical development of products. In the field of civil products business: consumer electronics business has made breakthroughs in new application fields. Smart logistics successfully achieved the key task of 7200 pieces / hour high-throughput DWS system. Internally, the company actively promoted the construction of "smart factory", successfully implemented "l6d automatic production line" and key projects such as strain gauge expansion, laying the foundation for the company to further improve production efficiency.
Profit forecast and investment suggestions
According to the company's 21st Annual Report and the decline of vehicle inspection market demand, we adjusted the company's earnings per share from 2022 to 2023 to 0.64 and 0.80 yuan (the previous values were 0.71 and 0.90), and the new 24-year EPS was 1.00 yuan. According to the 22-year P / E ratio given by the comparable company, the corresponding target price was 16.64 yuan, maintaining the buy rating.
Risk tips
The demand and pricing of military products are lower than expected; Sensor measurement and control demand is less than expected
