\u3000\u3 Bohai Water Industry Co.Ltd(000605) 305 Ficont Industry (Beijing) Co.Ltd(605305) )
Event: Recently, the company released its 2021 annual report. In 2021, the company achieved an operating revenue of 883 million yuan, a year-on-year increase of 29.64%; The net profit attributable to the parent company was 232 million yuan, a year-on-year increase of 25.17%. The basic earnings per share is 2.30 yuan.
Comments:
Performance growth picked up quarter by quarter, with strong profitability and toughness. In 2021, the company realized a revenue of 883million yuan, a year-on-year increase of 29.64%. Quarterly, Q1-Q4 revenue growth rates were 95.26%, 7.70%, 25.90% and 30.73% respectively; The growth rate of q1-q2 was 18.95 billion yuan, and the net profit of Q2 was 15.25% after the same quarter, with the growth rate of q1-q2 being 16.4 billion yuan, respectively. After the rush year of onshore wind power installation in 2020, China’s wind power installed capacity decreased in 2021, and the company’s performance achieved rapid countercyclical growth, mainly due to the company’s main product wind power aerial work equipment and maintenance service business, which benefited not only from the growth of new installed capacity, but also from the expansion of installed capacity of wind power stock. In addition, in terms of profitability, the company’s net profit margin in 2021 was 26.25%, a slight decrease of 0.93 PCT compared with the same period, and the company’s raw material cost accounted for more than 70%. Under the pressure of rising raw material cost and falling price of wind power industry chain, the company achieved cost reduction and better profitability by improving production process and production efficiency.
The aerial work equipment business benefited from the increase of market penetration of wind power stock and the growth of new installed capacity. In 2021, the company’s business income of high-altitude operation equipment was 852 million, an increase of 27.98%, accounting for 96.55% of the total revenue. Among them, the income of lifting equipment was 639 million, an increase of 40.62%, the gross profit margin was 52.18%, a decrease of 0.18 PCT, the income of protective equipment was 214 million, an increase of 0.86%, the gross profit margin was 36.01%, and a decrease of 10.53 PCT. We believe that the company’s high-altitude operation equipment business will maintain a high growth rate, mainly benefiting from the increased market penetration of global wind power stock and the rapid growth of new installed capacity. In 2021, China’s new installed capacity of wind power will be 47.57gw and the bidding volume will be about 50gw. We expect that China’s new installed capacity will be 60GW in 2022 and 93.6gw in 2021. We expect that the average annual new installed capacity will exceed 100gw from 2022 to 2026, and the global new installed capacity will maintain a rapid growth in the future, Accumulated installed capacity and rapid expansion. At present, the company’s customers cover all wind turbine manufacturers and five major power groups in China, and the top ten wind turbine manufacturers with new installed capacity in the world, with the first market share in the world. In November 2021, the company was selected as the “single champion demonstration enterprise in manufacturing industry” of the Ministry of industry and information technology, and its brand influence continues to increase.
Wind power maintenance services, overseas markets and other fields of wind power make concerted efforts, and there is great room for long-term growth. The maintenance cycle of wind power aerial work equipment is relatively short, and the stock maintenance market is gradually expanding. In 2021, the company’s wind power aerial work maintenance service revenue was 252741 million yuan, an increase of 103.33% at the same time. The company’s overseas market has gradually developed. In 2021, the company’s overseas revenue was 149 million yuan, with an increase of 89.85% and a gross profit margin of 56.47%, with a decrease of 1.24 PCT. The demand of the external market for wind power has gradually increased. The company’s revenue from the external industry of wind power in 2021 was 1.6863 million yuan, an increase of 353.94% at the same time. We expect that the demand for wind power such as power grid and communication will gradually increase. By the end of 2021, the length of 220kV and above transmission lines in China will reach 843400 kilometers, 12600 kilometers of UHV AC lines and 17200 kilometers of DC lines will be added during the 14th Five Year Plan period; By the end of 2021, there were 9.96 million mobile communication base stations in China. In 2021, there were more than 650000 new 5g base stations, and there was a large demand space for wind power. We expect that with the continuous growth of the global installed capacity of wind power and the gradual opening of the demand in other fields such as power grid and communication, we expect the company to have a large long-term growth space.
Profit forecast and investment rating: we expect the net profit of the company from 2022 to 2024 to be 308 million yuan, 399 million yuan and 499 million yuan respectively, and the corresponding EPS are 2.80 yuan / share, 3.63 yuan / share and 4.54 yuan / share respectively, corresponding to 19 times, 15 times and 12 times of the current share price PE respectively. Maintain the company’s “buy” rating.
Risk factors: the risk of intensified industry competition, the risk that overseas business progress does not meet expectations, the risk that the expansion of external fields of wind power does not meet expectations, the risk of repeated covid-19 epidemic, the risk of policy changes, the risk of price fluctuations of raw materials, etc.
