\u3000\u3 Guocheng Mining Co.Ltd(000688) 296 Zhejiang Heda Technology Co.Ltd(688296) )
Event:
The company issued the 2021 annual report after the closing on April 13, 2022.
Comments:
The operating revenue increased by 39.61% year-on-year, and the net profit attributable to the parent company increased by 32.41% year-on-year
In 2021, the company benefited from the development of the water information market and the competitive advantages of the company's products, the business scale maintained rapid growth, and the annual operating revenue was 507 million yuan, a year-on-year increase of 39.61%. In terms of products, the revenue of water management system is 80 million yuan, the revenue of intelligent sensing terminal is 143 million yuan, the revenue of system integration service is 263 million yuan, and the revenue of technical service is 21 million yuan. With the rapid growth of labor costs and R & D expenses, the company realized a net profit attributable to the parent company of 100 million yuan, a year-on-year increase of 32.41%; The net profit deducted from non parent company was 82 million yuan, with a year-on-year increase of 14.10%. The net operating cash flow of the company was 4.4524 million yuan, a year-on-year decrease of 91.51%, mainly due to the rapid promotion of new contracts, the expansion of procurement scale and the continuous growth of ending inventory.
Increase R & D investment and talent introduction, and rapidly expand the product line
In 2021, the total R & D expenses of the company were 633215 million yuan, a year-on-year increase of 62.66%, and the number of employees increased to 764, of which R & D personnel and technicians accounted for 73.04%. The company has set up software R & D centers in Shenzhen and Jinan to strengthen the R & D team of smart water SaaS cloud platform and water marketing service system. Under the background of establishing the goal of water-saving society, the company has arranged relevant Internet of things products around leakage control, and approved the intelligent drainage liquid level monitoring terminal project, pipe network leakage detector project and intelligent fire hydrant leakage series solution project. The above projects have successfully entered the testing stage, and the new products have high technical barriers, which will further expand the company's product line and improve the company's core competitiveness.
Strengthen the construction of sales team and verify the strength of the company with large orders
In 2021, under the background of national digital reform and water-saving and energy-saving, there is a strong demand for information construction in the water industry. The company has established sales offices in Beijing, Shanxi and Chongqing, and the market expansion area has further expanded; At the same time, the company set up a channel department to screen the core agents in the water industry, and built the first RTU product agent team to further promote the company's products and services. In 2021, the company successively won the "sewage pipe network intelligent sensing system project of Jiaxing Economic and Technological Development Zone", with an amount of 15.68 million yuan; The amount of "smart water project of Huangyan District rural drinking water standard raising (water supply integration) EPC project" is 23.508 million yuan; Yancheng's "construction project of integrated operation and supervision platform for urban sewage treatment facilities" amounts to 12.2 million yuan; "Shaoxing urban water supply intelligent construction pilot project - special project for leakage control of urban water supply pipe network" amounts to 638222 million yuan and other large projects, indicating that the company's comprehensive strength such as market promotion, product competitiveness and implementation and delivery has been recognized by the market.
Profit forecast and investment suggestions
The company is committed to using the new generation of information technology to improve the informatization and intelligence level of the water industry and ensure national water safety. It is predicted that the operating revenue of the company from 2022 to 2024 will be 699, 949 and 1274 million yuan, the net profit attributable to the parent company will be 141, 197 and 273 million yuan, the EPS will be 132, 1.84 and 2.54 yuan / share, and the corresponding PE will be 22.10, 15.84 and 11.45 times. At present, the company's revenue is in a period of rapid growth. Since its listing, PE has mainly operated between 30-70 times, maintaining the company's target PE of 35 times in 2022, with the corresponding target price of 46.20 yuan. Maintain the "buy" rating.
Risk tips
Repeated epidemic of co19-vid pneumonia; Intensified market competition; Risks of technical iteration; Risk of bad debt loss of accounts receivable; The risk of changes in preferential tax policies; Risk of seasonal fluctuations in income.
