\u3000\u3 Guocheng Mining Co.Ltd(000688) 516 Wuxi Autowell Technology Co.Ltd(688516) )
Performance maintained rapid growth and profitability continued to improve
On April 14, 2022, the company issued the 2021 annual report. In 2021, the company achieved an operating revenue of 2.047 billion yuan, a year-on-year increase of + 78.93%; The net profit attributable to the owners of the parent company was 371 million yuan, a year-on-year increase of + 138.63%; The net profit attributable to the parent company after deduction was 325 million yuan, a year-on-year increase of + 138.26%; The gross profit margin was 37.66%, year-on-year + 1.60pct; Net interest rate 17.95%, year-on-year + 4.37pct; During the period, the expense rate was 17.30%, year-on-year -0.3pct, of which the R & D expense rate was 7.08%, year-on-year +0.98pct, and the R & D expense increased by 107.58% year-on-year; Roe was 26.33%, with a year-on-year increase of + 12.08pct; The net cash flow from operating activities was 317 million yuan, a year-on-year increase of + 106.78%. Looking at the fourth quarter of 2021 alone, the company achieved an operating revenue of 619 million yuan, a year-on-year increase of + 26.20%; The net profit attributable to the owners of the parent company was 143 million yuan, a year-on-year increase of + 66.34%; The gross profit margin was 36.59%, year-on-year -2.76pct; The net interest rate was 23.28%, with a year-on-year increase of + 5.77pct.
The rapid growth of on hand orders provides sufficient guarantee for performance
In 2021, the company signed 4.281 billion yuan of new orders (including tax, the same below), a year-on-year increase of 60.52%. By the end of 21, the company had 4.256 billion yuan of orders on hand, a year-on-year increase of 77.41%. Considering that the delivery cycle of the company’s main products is 6-9 months, the current orders on hand provide sufficient guarantee for the performance of 22 years.
The contract liabilities of the company at the end of 21 years were 1.142 billion yuan, an increase of 70.10% year-on-year; The inventory was 1.852 billion yuan, with a year-on-year increase of 44.46%, which was consistent with the growth of orders.
The new installed capacity reached a new high, and the photovoltaic boom is expected to continue
In 2021, the global PV installed capacity increased by 170gw, a record high. China’s PV installed capacity increased by 54.88gw, a year-on-year increase of 13.9%. The cumulative PV grid connected installed capacity reached 308gw, a year-on-year increase of 25.1%. The newly added and accumulated installed capacity has ranked first in the world for nine consecutive years.
Many countries around the world have put forward the climate goal of “zero carbon” or “carbon neutrality”. The development of renewable energy including photovoltaic has become a global consensus. In addition, photovoltaic power generation has become the most competitive form of power supply in more and more countries. It is expected that the global photovoltaic market will maintain rapid growth, while China’s photovoltaic industry is expanding in manufacturing scale, industrialization technology level, application market Industrial system construction and other aspects are among the top in the world. The company’s photovoltaic equipment revenue accounted for 84.37% of its main business revenue in 21 years. The continued prosperity of the photovoltaic market is expected to bring sustained order growth to the company.
Photovoltaic lithium battery semiconductor three wheel drive, optimistic about the future development of the company
In addition to photovoltaic equipment, during the reporting period, the company’s lithium battery module / pack production line obtained large orders from honeycomb energy, realizing a breakthrough of more than 100 million in the single order amount of lithium battery business. The semiconductor bonding machine has been verified and tried out in many customers. The verification effect is good, and the first batch of orders have been obtained. At the same time, the rapid growth of the new energy vehicle industry and the domestic substitution demand for semiconductor equipment also bring sustainable development opportunities for the company’s lithium battery business and semiconductor business, and are optimistic about the company’s long-term development.
Investment advice
It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 493 million yuan, 662 million yuan and 913 million yuan respectively, corresponding to 37x / 28x / 20x PE from 2022 to 2024, which will continue to be recommended.
Risk tips
Macroeconomic downturn and market demand decline; The photovoltaic industry is subject to sanctions; Bad debt and inventory falling price risk, etc.
