\u3000\u3 Guocheng Mining Co.Ltd(000688) 516 Wuxi Autowell Technology Co.Ltd(688516) )
Event overview
The company released the first quarterly report of 2022. In the first quarter of 2021, the company achieved a total operating revenue of 625 million yuan, a year-on-year increase of 70.25%, and the net profit attributable to the parent company was 107 million yuan, a year-on-year increase of 109.49%, deducting the net profit not attributable to the parent company was 996049 million yuan, a year-on-year increase of 116.93%.
Analysis and judgment:
The performance of 21q1 was outstanding, and the cost rate increased month on month. 1) In 2021, the company mainly benefited from the capacity expansion of large-size silicon wafers downstream, and the increased demand for the company’s core products, ultra-high speed large-size series welding machine and silicon wafer sorter, which led to a significant increase in the company’s revenue. 2) From the perspective of profitability, the company’s cost control ability was further strengthened. The gross profit margin of 21q1 company reached 38.62%, year-on-year + 1.07pct/month on month + 2.03pct, and the net profit margin of 21q1 company was 16.24%, year-on-year + 2.37ppct. Mainly affected by the increase of sales / management / Finance / R & D expense ratio of 21q1 company from 1.61/2.50/0.50/0.47pct to 4.63% / 6.86% / 0.42% / 7.30%, the net interest rate decreased by 7.04pct month on month.
Sufficient new and on-hand orders, high performance and strong guarantee. In 2022, the company’s businesses maintained a good trend, especially the aluminum wire bonding machine. The company recently received batch orders for aluminum wire bonding machine, which fully shows that the company’s products have strong competitiveness and the strength of import substitution. In addition, the company’s photovoltaic module equipment business still maintained a good growth momentum. On February 16, it announced that it had successfully won the bid for Qujing Jingao, Hefei Jingao silicon wafer sorter and multi main grid scribing and welding conjoined machine projects. On March 15, it announced the bidding project of series welding machine and scribing machine of Shangrao project of Jingke energy (Shangrao) Co., Ltd., with the bid winning amount of about 110 million yuan and 140 million yuan respectively. According to the company’s announcement, in 2022q1, the company signed 1.44 billion yuan of new orders (including value-added tax, Unaudited), an increase of 84.62% year-on-year; As of March 31, 2022, the company’s orders on hand were 4.894 billion yuan (including value-added tax, Unaudited), a year-on-year increase of 77.00%.
Investment suggestion: keep the company’s profit forecast unchanged. It is estimated that the company’s revenue in 22-24 years will be 3.298/43.71/6.071 billion yuan respectively, the net profit attributable to the parent company will be 5.77/7.78/1.090 billion yuan respectively, and the EPS will be 5.84/7.89/11.05 yuan respectively, corresponding to the closing price of 198.92 yuan / share on April 18, 2022, and the PE in 22-24 years will be 34 / 25 / 18 times respectively. We maintain a “buy” rating.
Risk warning: the photovoltaic landscape is not as good as expected; The promotion of new products is less than expected; Industry competition intensifies.
