\u3000\u3 China Vanke Co.Ltd(000002) 531 Titan Wind Energy (Suzhou) Co.Ltd(002531) )
Key investment points
Performance summary: in 2021, the company achieved an operating revenue of RMB 8.166 billion, a year-on-year increase of 1.42%, a net profit attributable to the parent company of RMB 1.310 billion, a year-on-year increase of 24.76%, and a deduction of non net profit of RMB 1.075 billion, a year-on-year increase of 9.91%. In the fourth quarter, the operating revenue was 2.952 billion yuan, a year-on-year increase of 12.45%; The net profit attributable to the parent company was 278 million yuan, a year-on-year increase of 15.56%; The net profit deducted from non parent company was RMB 287 million, with a year-on-year increase of 13.33%. Meet expectations.
Actively carry out capacity layout, and the production and sales volume has increased steadily this year. In 2021, the sales volume of the company’s wind tower products reached 626500 tons, realizing a revenue of 5.177 billion yuan, slightly lower than expected, the gross profit margin decreased by 5.2 percentage points, and the estimated net profit per ton was about 700 yuan. The company’s production capacity is expanded as planned. Tongliao and Puyang production bases have been put into operation. At present, the total annual production capacity is about 900000 tons. At the same time, Qian’an, Shayang, Hepu and other places are actively expanding production. It is expected to form a tower capacity of 1.2 million tons by the end of 2023. At the same time, the company is optimistic about the development of sea breeze, and the construction of marine engineering bases in Germany and Sheyang is also progressing steadily. It is expected to form a Shanghai Pudong Development Bank Co.Ltd(600000) T / a marine engineering capacity by the end of 2022. The company’s production capacity expands rapidly, and the sales volume is expected to increase significantly in 2022 and 23.
The performance of blade capacity and volume increased, and the production and sales revenue reached a new high. In 2021, the sales volume of the company’s blades reached 2675, down 16.4%, the sales volume of molds reached 61 sets, increased by 20 sets, the operating revenue was 1.781 billion yuan, down 17.6% year-on-year, and the gross profit margin decreased by 4.3 percentage points. The main reason is that the price of blades and molds has decreased by about 10%. The company plans to build a total of four new leaf plants, namely Henan Puyang plant (which has been put into operation in June this year), Inner Mongolia Shangdu plant, Jilin Qian’an plant and Hubei Jingmen plant. After Puyang blade production base is officially put into production this year, Shangdu blade production base is expected to be officially put into production in 2022. It is expected to double the existing capacity by the end of 2023.
The utilization of wind farms has been improved, and the operation projects have been steadily expanded. In 2021, the power generation of the company’s wind farm was 2.091 billion kWh and the revenue was 1.051 billion yuan, with a year-on-year increase of 47.9%. The utilization hours increased slightly and the gross profit margin increased by 3.5 percentage points. By the end of 2021, the cumulative scale of grid connected wind farms of the company has reached 884mw. It is expected that the grid connection of Wulanchabu 500MW project will be completed in 2022, and the performance will be significantly improved.
Profit forecast and investment suggestions. The company is a leading company in China’s wind tower industry, with rapid capacity expansion. In the past two years, the company’s wind farm business has continued to develop steadily, continue to expand new business segments of blades, become a new performance growth point and maintain the “buy” rating.
Risk tip: there is a risk that the demand for wind power orders will decline significantly and the company’s capacity utilization will decline; The sharp rise in steel prices risks eroding the company’s profits.
