\u3000\u3 Bohai Water Industry Co.Ltd(000605) 305 Ficont Industry (Beijing) Co.Ltd(605305) )
Event: the company disclosed the annual report of 2021. The annual revenue was 883 million, yoy + 29.64%, and the net profit attributable to the parent was 232 million, yoy + 25.17%; Q4 achieved a revenue of 259 million, yoy + 30.73%, and a net profit attributable to the parent company of 51 million, yoy + 25.47%.
Benefiting from the high prosperity of the wind power industry and the increase in the proportion of high-value elevators, the company’s revenue achieved steady growth. In 2021, the company’s main business revenue increased by 29.36% year-on-year. The main business revenue source is mainly concentrated in the wind power industry. The wind power industry contributed 876 million yuan of revenue, with a year-on-year increase of 29.18%. The company’s revenue growth rate is better than the global wind power installed growth rate in 2021 (- 1.8%, data from GWEC) and China’s wind power installed growth rate (- 33.6%, data from the National Bureau of Statistics). The main reasons are: ① the company’s product sales include new addition and stock transformation, At present, the transformation demand of the stock market is greater than the new demand; In 2021, the company sold 31700 sets of high-altitude lifting equipment, yoy + 49%; ② In 2021, the company achieved an overseas sales revenue of about 149 million yuan, an increase of 89.85% year-on-year, accounting for 17.01% of the main business revenue in 2021 from 11.59% in 2020; ③ The company’s products are also used in thermal power, power grid, animal husbandry, construction and other industries. In this period, the sales revenue was 1.6863 million yuan, a year-on-year increase of 353.94%.
The gross profit margin of sub businesses declined, mainly due to the rise of raw material costs. In 2021, the gross profit margin of the company’s high-altitude safety lifting equipment decreased by 0.18 PCT to 52.18%, the gross profit margin of high-altitude safety protection equipment decreased by 10.53 PCT to 36.01% and the gross profit margin of high-altitude safety operation service decreased by 5.03 PCT to 21.44% year-on-year. It is mainly affected by the rapid rise of direct material costs and related to the rapid rise of raw material costs. The company’s products are mainly made of aluminum, steel wire rope, wire and cable, electromechanical, electrical parts, hardware standard parts, etc, It is directly affected by the rise in the price of bulk raw materials in the upstream.
From lifting equipment to protective equipment to other fields, the development route of the company is clear. 1) In the field of lifting equipment, there is 2-4 billion space in the world every year, mainly in the field of wind power. With the rapid development of China’s wind power market, China’s special high-altitude safety operation equipment industry has formed a competitive pattern dominated by Ficont Industry (Beijing) Co.Ltd(605305) and a few enterprises with strong R & D strength and competitive advantage. At present, excellent domestic companies have occupied the main market share in China and will gradually move overseas in the future; 2) In the field of protective equipment, there is 3-4 billion space in the world every year, mainly in the field of wind power. The company has a low global share and is in the stage of continuous expansion; 3) In other fields, such as power transmission and transformation towers and communication towers, fall arrest systems, high-altitude emergency escape devices and other markets, the company began to layout.
It is expected that the company will maintain rapid growth in 2022: 1) the growth rate of global wind power installed capacity in 2022 will be higher than that in 2021; 2) Among the new high-altitude lifting equipment, the proportion of elevators has yet to be increased, and the unit price is expected to increase; 3) The company’s non wind power sector grew rapidly.
Investment suggestion: considering the development of various businesses of the company, it is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 3.1/3.9/470 billion yuan respectively, and the corresponding PE will be 19x / 15x / 12x respectively, maintaining the “recommended” rating.
Risk tip: the risk that the epidemic situation will affect the delivery speed, and the risk that raw materials will continue to rise, resulting in the decline of gross profit margin.
