\u3000\u3 Guocheng Mining Co.Ltd(000688) 516 Wuxi Autowell Technology Co.Ltd(688516) )
Event: Recently, the company released its 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 basic earnings per share is 3.76 yuan.
Comments:
The performance continues to increase, and there are sufficient orders on hand. On the revenue side, the company achieved a revenue of 2.047 billion yuan in 2021, an increase of 78.93% at the same time. The technology iteration of the photovoltaic industry is fast, and the equipment manufacturers fully benefit from the general trend of photovoltaic process iteration. At the same time, the company’s technical advantages are leading, and the core products large-size, ultra-high-speed multi main grid series welding machine and silicon wafer sorter are expected to maintain a high growth. By the end of 2021, the company’s orders on hand were 4.256 billion yuan (including tax), a year-on-year increase of 77.41%. On the profit side, in 2021, the net profit attributable to the parent company was 371 million yuan, an increase of 138.63% at the same time, and the net profit deducted from the non attributable to the parent company was 325 million yuan, an increase of 138.26%, the net profit margin was 17.95%, an increase of 4.37 PCT, the gross profit margin was 37.66%, and an increase of 1.60 PCT at the same time. In 2021, the sales expense rate was 3.82%, decreased by 0.51pct, the management expense rate was 5.39%, decreased by 0.99pct, the financial expense rate was 1.00%, increased by 0.22pct, the R & D expense rate was 7.08%, increased by 0.98%, and the R & D investment was increased. The company’s expense control has been strengthened, while the products continue to iterate and the profitability continues to rise.
The competitiveness of series welding machine products continues to consolidate and is expected to maintain high growth. In 2021, the company’s photovoltaic equipment revenue was 1.725 billion, with an increase of 78.16% and a gross profit margin of 37.5%, with an increase of 1.79%, mainly due to product iteration. The company’s photovoltaic equipment is mainly series welding machines. In 2021, the company sold 1144 sets of multi main grid series welding machines, with an increase of 72.81%, and 144 sets of laser dicing machines, with an increase of 54.84%. The competitiveness of the company’s series welding machine products continues to consolidate. The production capacity of the company’s latest ultra-high speed, large-size and multi main grid series welding machine products reaches 7200 pieces / hour. New models are being developed to further improve the performance and meet the requirements of new processes. The installed capacity demand of the photovoltaic industry is expected to maintain a high growth. In 2021, the country’s new photovoltaic grid connected installed capacity will be 54.88gw, an increase of 13.9% at the same time. We expect that the average annual new installed capacity of China’s photovoltaic industry during the 14th Five Year Plan period will be 70-90gw. Driven by the European market, China’s scenery guaranteed grid connection, the promotion of the whole county and large base projects, we expect that the global new installed capacity will be 220gw in 2022, an increase of nearly 30% at the same time, and will maintain a rapid compound growth rate during the 14th five year plan period, At the same time, the iteration speed of photovoltaic process route is fast, and the competitiveness of the company’s core product series welding machine continues to increase, which will fully benefit from the trend of photovoltaic long track and process iteration.
Single crystal furnace, lithium battery equipment and semiconductor equipment continue to make breakthroughs and open up growth space. In 2021, the newly signed orders of the company’s silicon wafer single crystal furnace increased strongly, and the performance of the Czochralski single crystal furnace reached the advanced level of the industry. The single crystal furnace (sc1600) that has been put into operation has a stable capacity of more than 170 kg, and obtained the largest single customer order in 2021, with an order amount of 137 million. The integrated sintering and annealing furnace (light injection) in the battery link benefited from the expansion of the market scale of n-type battery and the rapid increase of revenue. The lithium battery equipment module / pack production line has obtained large orders from honeycomb energy, with a single order amount of more than 100 million yuan for the first time, and a total sales volume of 10. The semiconductor bonding machine has been verified and tried out in many customers, and the verification effect is good. Recently, Tongfu Microelectronics Co.Ltd(002156) batch orders have been obtained. The semiconductor industry has maintained rapid growth. In 2021, the sales of integrated circuits reached 1.05 trillion yuan, an increase of 18.2% at the same time, and the revenue from packaging and testing reached 276.3 billion yuan, an increase of 10.1% at the same time. At the same time, the localization rate of core equipment in the semiconductor packaging sector is low. With the continuous improvement of the performance of domestic equipment, there is a large space for the import of domestic equipment. We believe that the company will continue to give full play to the advantages of platform R & D, realize multi field attack and open up long-term growth space.
Profit forecast and investment rating: we expect the net profit attributable to the parent company from 2022 to 2024 to be 523 million yuan, 692 million yuan and 935 million yuan respectively, and the corresponding EPS are 5.30 yuan / share, 7.02 yuan / share and 9.48 yuan / share respectively, corresponding to 35 times, 26 times and 20 times of the current share price PE respectively. Maintain the “buy” rating.
Risk factors: the risk of intensified industrial competition, the risk of industrial policy changes, the risk of raw material price fluctuations, etc.
