\u3000\u3 Guocheng Mining Co.Ltd(000688) 333 Xi’An Bright Laser Technologies Co.Ltd(688333) )
Event: the company released its 2021 annual report: in 2021, the company realized a revenue of 552million yuan, an increase of 33.92% at the same time. The net profit attributable to the parent was -53.3 million yuan, a decrease of 140million yuan, and the non net profit deducted was -891483 million yuan, a decrease of 150million yuan, mainly due to the accrual of share based payment expenses.
Key investment points
3D printing is a leading enterprise with steady revenue growth. In 2021, the company’s revenue was 552 million yuan, an increase of 33.92%, and achieved a gross profit of 266 million yuan, an increase of 24.8%, with a gross profit margin of 48.23%. The company continued to explore new markets and application fields. During the reporting period, the operating revenue of self-developed products increased steadily. Among them, the operating revenue of 3D printing customized products, self-developed 3D printing equipment and 3D printing raw materials increased by 29.61%, 44.40% and 26.65% respectively.
Increase R & D investment, equity incentive and lock in the core team. The growth rate of the company’s operating income exceeds the target value of performance assessment. Through equity incentive, the company locks in senior executives and core technical teams to enhance internal cohesion. During the reporting period, the company accrued 173 million yuan of share based payment expenses, which are included in management expenses and belong to non cash expenses. The target value of performance assessment in 2022 is that the annual compound growth rate of operating income in recent three years is 30%. The company continued to maintain high investment in R & D. in 2021, the company invested 114 million yuan in R & D, accounting for 20.69% of operating revenue. In 2021, it obtained 68 patents and a total of 240 patents. High R & D investment can maintain the company’s technical advantages in the industry and further promote the rapid growth of the company’s performance with equity incentive.
Deeply plough the aerospace field, with both scale and technical advantages. The potential of 3D printing in aerospace, automotive and medical fields is growing. According to Wohlers associates 2022, the global additive manufacturing market reached US $15.244 billion in 2021. The company is the largest manufacturer of metal additive in China, deeply engaged in the field of aerospace. During the reporting period, the company’s phase II metal additive manufacturing intelligent factory project was completed and put into operation, and the fixed assets increased by 104.09% year-on-year; Complete the preparation and application verification of titanium alloy and superalloy powder materials, and realize mass production, with a production capacity of more than 400 tons. The company has both scale and technical advantages, and is expected to further consolidate its leading position.
Profit forecast and investment rating: Based on the broad prospects of downstream application fields and taking into account the company’s leading position in the field of metal additive, we expect the net profit attributable to the parent company from 2022 to 2024 to be 158 / 246 / 370 million yuan respectively, corresponding to EPS of 196 yuan, 3.05 yuan and 4.58 yuan respectively, and corresponding PE of 72 / 46 / 31 times respectively. We will give a “buy” rating for the first time.
Risk tips: 1) downstream demand and order fluctuation; 2) The company’s profit is less than expected; 3) Market systemic risk.
