\u3000\u30003 Mesnac Co.Ltd(002073) 00207)
The company released the annual report of 2021, and achieved a profit of 916 million yuan, a year-on-year increase of 14.18%; The company’s consumer business maintained rapid growth, and the power business increased rapidly; Maintain the overweight rating.
Key points supporting rating
The company’s profit in 2021 increased significantly year-on-year, which was in line with expectations: the company released its annual report in 2021 and achieved an operating revenue of 37.359 billion yuan, a year-on-year increase of 25.82%; The profit was 916 million yuan, a year-on-year increase of 14.18%; Deduct non-profit 528 million yuan, a year-on-year increase of 101.72%. According to the calculation, 2021q4 achieved a profit of 246 million yuan, a year-on-year decrease of 25.30% and a month on month increase of 372.19%; Deduct non-profit of 77 million yuan, a year-on-year decrease of 40.98% and a month on month decrease of 66.34%. The performance of the company’s annual report is in line with expectations.
The gross profit margin remained stable and the operating cash flow increased significantly: the company’s overall sales gross profit margin was 14.69%, a year-on-year decrease of 0.17 percentage points. The operating capacity of the company has been gradually improved. The net cash flow generated from the annual operation was 1.634 billion yuan, with a significant year-on-year increase of 569.50%.
The consumer business maintained rapid growth and the production capacity was gradually released: the company benefited from the recovery and growth of the smart phone industry. The mobile phone digital business achieved a revenue of 20.795 billion yuan, a year-on-year increase of 26.77%, and the gross profit margin was 18.39%, a year-on-year increase of 0.15 percentage points. The revenue of notebook computer battery business was 5.419 billion yuan, a year-on-year increase of 30.57%; The revenue of precision structural parts business was 2.180 billion yuan, a year-on-year increase of 32.11%; The revenue of intelligent hardware business was 5.007 billion yuan, a year-on-year decrease of 21.37%. The company’s annual capacity expansion plan has been successfully completed, and its subsidiary Zhejiang Liwei phase I has achieved mass production.
Rapid and large-scale power business and accelerated layout of energy storage business: the company’s power battery has been recognized by many well-known car enterprises at home and abroad. In 2021, the power battery business achieved a revenue of 2.933 billion yuan, a significant year-on-year increase of 584.67%, gross profit margin of – 0.87%, and a significant year-on-year increase of 13.98 percentage points. The company’s total annual shipment of power batteries is 3.52gwh. HEV and 48V products of the company will be delivered in batches in 2022. The company’s energy storage business has developed rapidly and won energy storage projects above 10mwh scale, such as 13.3mwh in Africa, 30mwh in Datong, Shanxi and 24mwh in Xinhe, Hebei.
Valuation
Under the current share capital, combined with the company’s 2021 annual report and industry changes, we adjusted the company’s predicted earnings per share from 2022 to 2024 to 0.99/1.39/1.83 yuan (the original prediction was 1.05/1.36 / – yuan), corresponding to a P / E ratio of 23.3/16.6/12.6 times; Maintain the overweight rating.
Main risks of rating
The global demand for 3C products may not meet expectations; New energy vehicle industry policy risk; The company’s power battery R & D, capacity release and digestion may not meet expectations; The impact of covid-19 epidemic exceeded expectations.
