\u3000\u3 Guocheng Mining Co.Ltd(000688) 698 Suzhou Veichi Electric Co.Ltd(688698) )
Key investment points
Performance summary: the company]2021 achieved an operating revenue of 819 million yuan, with a year-on-year increase of 43.10%; The net profit attributable to the parent company was 128 million yuan, a year-on-year increase of 44.76%; The net profit deducted from non parent company was 114 million yuan, with a year-on-year increase of 37.20%; EPS is 0.70 yuan. Among them, the revenue in the fourth quarter was 203 million yuan, a year-on-year increase of 32.71%; The net profit attributable to the parent company was 26 million yuan, a year-on-year increase of 92.27%.
With the active promotion of “double carbon”, the inverter business has grown steadily. In terms of performance, in 2021, the company’s frequency converter business achieved a revenue of 597 million yuan, a year-on-year increase of 31.21%, and the gross profit margin was 37.41%, a year-on-year decrease of 4.49pp, mainly due to the rise of raw material prices. However, we believe that the customer stickiness of the company’s special aircraft in the industry is strong. With the optimization and upgrading of industry solutions, the profitability is expected to be boosted. The company’s general frequency converter achieved a revenue of 221 million yuan, a year-on-year increase of 22.95%; The revenue of special aircraft in the industry was 376 million yuan, with a year-on-year increase of 36.58%, achieving stable growth. In terms of product volume and price, the company sold 415800 frequency converters in total, with a year-on-year increase of 41.71%, and the average price decreased from 1551.2 yuan / set in 2020 to 1436.3 yuan / set; The sales volume of the company’s special aircraft in the industry was 195200, with a year-on-year increase of 22.75%, and the average price rose to 192831 yuan / set, realizing both volume and price. With the accelerated development of the company in lithium battery photovoltaic and other fields, it is expected to promote the sales of special aircraft in the industry in the future.
Accelerate the integrated layout, and servo control has become a new growth point of the company. In 2021, the company’s servo business revenue was 187 million yuan, with a year-on-year increase of 82.36%, and the business proportion increased to 23.74%, realizing rapid growth. The sales volume of servo system and motion controller was 204500 units, with a year-on-year increase of 76.46%, and the average price rose to 916.6 yuan / unit, with both volume and price rising. During the reporting period, the company’s servo system product line successively launched v7e series servo motor, sd710 and sd700-na servo driver, sd500m3 bus spindle servo and encoder, and the product line was further improved. In the future, with Vc1 series controllers and other projects reaching expectations, technology cost reduction is expected to drive the gross profit margin to stabilize and rise.
Increased R & D investment and breakthroughs in key technologies. In 2021, the company’s R & D expenses were 75.971 million yuan, a year-on-year increase of 44.09%. During the reporting period, the company completed the motor adaptive flux observation technology and the MTPA online search algorithm of reluctance motor, so as to strengthen the performance advantage in the field of motor drive; At the same time, the company has made breakthroughs in silicon carbide application, laminated busbar and short-circuit current sharing design technology, which has established a competitive advantage for industrial products.
Profit forecast and investment suggestions. It is estimated that the company’s revenue from 2022 to 2024 will be 1.104 billion yuan, 1.422 billion yuan and 1.796 billion yuan respectively, and the net profit attributable to the parent company will maintain a compound growth rate of 33.77% in the next three years. The company actively promotes the high-quality development of intelligent manufacturing and digital factories, and its performance is expected to improve for a long time, maintaining the “hold” rating.
Risk tips: risks of new product development; Risk of dependence on import of IC chips, IGBT and other electronic components.
