\u3000\u3 Shengda Resources Co.Ltd(000603) 995 Zhejiang Yongjin Metal Technology Co.Ltd(603995) )
Core conclusion
Event: on April 11, the company released its annual report for 2021. In 2021, the company achieved an operating revenue of RMB 31.366 billion, with a year-on-year growth rate of 53.43%; The net profit attributable to the parent company was 591 million yuan, a year-on-year increase of 42.62%. Among them, the net profit attributable to the parent company of 2021q4 was 155 million yuan, an increase of 1.97% over 2021q3. Affected by the dual control of energy consumption in 2021, the year-on-year growth rate of the company’s revenue in a single quarter showed a downward trend. In 2021, the rise of stainless steel price drives the company’s gross profit per ton to rise by 163 yuan / ton. It is expected that the gross profit per ton will fall in 2022 with the rise of cost side. In 2021q1 / Q2 / Q3 / Q4, the company achieved operating revenue of 62.66/78.69/83.52/8.879 billion yuan respectively, and yoy was 97.19% / 65.73% / 46.70% / 30.11%. In terms of gross profit margin, the gross profit margin of wide width cold rolling 300 series products is 3.99%, an increase of 0.39 PCT compared with 2020; The gross profit margin of wide width cold rolling 400 series products was 10.99%, a decrease of 1.68 PCT compared with 2020; The gross profit margin of precision cold rolled 300 series products was 14.34%, down 1.91 PCT from 2020; The gross profit margin of precision cold rolled 400 series products was 11.65%, a decrease of 2.82 PCT compared with 2020, and the comprehensive gross profit margin increased by 0.12 PCT to 5.28%.
Accelerate the expansion of production capacity and actively distribute downstream high-end products. The annual output of 220000 tons of precision cold-rolled stainless steel sheet and strip cooperated with Jiuquan Iron and Steel Co., Ltd. was started in Gansu on April 11. In addition, the first production line of wide composite materials cooperated by the company and praseodymium Seiko has been successfully put into trial production in December 2021, and the annual production capacity is expected to reach more than 30000 tons; The company’s annual output of 100000 tons of stainless steel pipe and accessories project has completed the installation of about 30000 tons of pipe capacity by the end of the year, and it is expected to be completed within 2022.
The management ability was improved and the three fee rate continued to decline. Through independent research and development of equipment, the company has significantly reduced the procurement, installation, commissioning and daily maintenance costs of cold rolling equipment. In 2021, the company’s expense rate was 0.62%, down 0.59 PCT compared with 2020, and the effect of cost control is obvious.
Investment suggestion: from 2022 to 2024, the company is expected to achieve revenue of 38.863/48.698/51.936 billion yuan and net profit attributable to the parent company of 933/11.321223 million yuan respectively, which is rated as “buy”.
Risk tip: the macro-economy is falling faster than expected, and the production capacity under construction is lower than expected
