\u3000\u3 Bohai Water Industry Co.Ltd(000605) 305 Ficont Industry (Beijing) Co.Ltd(605305) )
Event: on the evening of April 14, the company released its 2021 annual report.
Revenue in 2021 increased by 30% year-on-year; The net profit attributable to the parent company increased by 25% year-on-year, in line with expectations.
The company achieved a revenue of 880 million yuan in 2021, with a year-on-year increase of 30%; The net profit attributable to the parent company was 230 million yuan, a year-on-year increase of 25%. Q4 achieved a revenue of 260 million yuan in a single quarter, a year-on-year increase of 31%, a month on month increase of 9% in the third quarter, and a net profit attributable to the parent company of 50 million yuan, a year-on-year increase of 25% and a month on month decrease of 10%. The revenue and net profit attributable to the parent company in 2021 are in line with expectations.
The change in the accounting standards and the increase in the gross profit rate of raw materials in 202107pct were mainly affected
The gross profit margin / net profit margin of the company’s sales in 2021 were 48% / 26% respectively, with a year-on-year decrease of 10.7/0.9pct respectively. In Q4, the gross profit margin / net profit margin of sales in a single quarter were 27% / 20% respectively, down 31.7/0.8pct year-on-year and 26 / 4.2pct month on month respectively. The large decline in gross profit margin in 2021 is mainly due to the change of accounting standards, and the relevant transportation costs are included in operating costs as contract performance costs. In addition, aluminum accounts for about 25% of the company’s raw materials. According to the price of Changjiang nonferrous metals, the average price of aluminum in 2021 increased by more than 30% year-on-year in 2020, which has a great impact on the company’s direct cost.
The year-on-year growth rate of overseas markets and fields outside wind power is bright, which is expected to open new profit growth points for the company
In terms of industries, the company’s wind power industry revenue in 2021 was about 870 million yuan, with a year-on-year increase of about 29%, accounting for 99% of the total revenue. It is still the main downstream field of the company’s products. The company is actively exploring the external market of wind power. In 2021, its products achieved a revenue of about 1.69 million yuan in thermal power, power grid, animal husbandry, construction and other industries, with a year-on-year increase of 354%. In terms of regions, the company’s export revenue in 2021 was about 150 million yuan, with a year-on-year increase of about 90%, accounting for about 17% of the total revenue, and the proportion of export sales increased by about 7.3/5.4pct respectively compared with 2019 / 2020. By the end of 2021, the company’s main products have obtained the certification and testing required by the export market, laying the foundation for further overseas expansion, and the company’s overseas revenue is expected to maintain a rapid growth rate.
The development of new products for high-power units and offshore wind power demand is expected to continue to benefit from the development of offshore wind power industry
According to Bloomberg new energy data, the global installed capacity of offshore wind power in 2021 is about 13.4gw, of which China’s installed capacity is about 10.8gw. Affected by China’s rush to install offshore wind power in 2021, based on 2022, it is estimated that the new installed capacity of China’s offshore wind power will increase from 7gw to 15gw from 2022 to 2025, and the CAGR will be nearly 30% from 2022 to 2025. Aiming at the demand of high-power units and offshore wind power, the company actively develops new products such as lifting equipment in the tower of floating wind turbine and high load lifting equipment, which is expected to continue to benefit from the trend of large-scale wind turbine and the rapid growth of offshore wind power market in the future.
Profit forecast
It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 300 / 3.8 / 470 million respectively, with a year-on-year increase of 30% / 27% / 24%, corresponding to P / E19 / 15 / 12x. As the leader of high-altitude safe operation of wind power in China, the company actively develops overseas, external fields of wind power and offshore wind power market, which is expected to open a new growth pole for the company and maintain the “buy” rating.
Risk tips
1) the development of wind power industry is less than expected; 2) Overseas development is less than expected; 3) The epidemic has repeatedly affected construction.
