\u3000\u3 China Vanke Co.Ltd(000002) 028 Sieyuan Electric Co.Ltd(002028) )
Event: the company released its annual report for 2021, and achieved an operating revenue of 8.695 billion yuan in 2021, with a year-on-year increase of 17.94%; The net profit attributable to the parent company was 1.198 billion yuan, a year-on-year increase of 28.32%. The overall gross profit margin was 30.48%, with a year-on-year increase of 1.22pct.
The order amount has made another breakthrough and the overseas business has grown rapidly. In 2021, the company increased orders by 10.369 billion yuan (excluding tax), an increase of 22.6% year-on-year. Among them, 2.25 billion yuan of new orders were added in the overseas market, an increase of 50.0% year-on-year; New orders in the Chinese market reached 8.12 billion yuan, a year-on-year increase of 16.7%. By the end of 2021, 31 EPC projects of the company were in the project implementation stage, and 8 EPC projects obtained completion certificates in 2021.
Multiple businesses went hand in hand, and the gross profit margin increased steadily. Switches and related products account for the largest proportion of the company's revenue, with an operating revenue of 4.017 billion yuan in 2021, a year-on-year increase of 18.93%; Coil and related products achieved a revenue of 1.769 billion yuan, a year-on-year increase of 22.02%; The revenue of reactive power compensation and related products was 1.142 billion yuan, a year-on-year increase of 4.88%; The revenue of intelligent equipment and related products was 885 million yuan, a year-on-year increase of 11.57%; The revenue from EPC was 675 million yuan, a year-on-year increase of 23.61%. In terms of sales area, the operating revenue from China was 7.323 billion yuan, a year-on-year increase of 18.65%; The operating revenue from overseas markets was 1.372 billion yuan, a year-on-year increase of 14.32%.
The overall gross profit margin increased by 1.22pct to 30.48% year-on-year, of which the gross profit margin of switches and related products increased by 1.13pct to 31.52%, the gross profit margin of coils and related products decreased by 2.21pct to 29.83%, the gross profit margin of reactive power compensation and related products increased by 4.41pct to 30.27% year-on-year, and the gross profit margin of intelligent equipment and related products decreased by 2.23pct to 36.82% year-on-year.
Affected by the epidemic, the performance declined in the first quarter of 2022, and continued to pay attention to the follow-up progress. The company released the performance forecast for the first quarter of 2022. Disturbed by the epidemic in the short term, the net profit attributable to the parent company in the first quarter of 2022 is expected to be 110160 million yuan, a year-on-year decrease of 42.93% - 60.77%. Headquartered in Shanghai, the company has several important production bases in Minhang District, Shanghai, Rugao, Jiangsu, Changzhou, Jiangsu and other places. In 2022, considering various factors, the company plans to increase contract orders by 11.9 billion yuan (excluding tax), a year-on-year increase of 15%; The operating revenue reached 10 billion yuan, a year-on-year increase of 15%.
Profit forecast, valuation and rating: in 2021, the company's orders at home and abroad will maintain growth, and the overall amount of new orders will exceed 10 billion yuan to 10.37 billion yuan. At the same time, we effectively responded to the price rise of raw materials, and the gross profit margin increased steadily. The impact of the epidemic exists objectively, but the company has sufficient orders on hand and multi-point layout at home and abroad. It is still expected to quickly resume shipment after the epidemic recovers. To sum up, we lowered the company's net profit attributable to the parent company from 2022 to 2023 by 13.1% / 12.7% to 13.8/1.71 billion yuan, increased the predicted net profit in 2024 to 2.07 billion yuan, and the current share price corresponds to 17 times of PE in 2022. The company's overseas business continued to grow, with outstanding management advantages, and maintained the "buy" rating.
Risk warning: the industry support policy is declining; Changes in preferential tax policies; On grid electricity price and subsidy change risk, etc.
