\u3000\u3 Guocheng Mining Co.Ltd(000688) 188 Shanghai Friendess Electronic Technology Corporation Limited(688188) )
In 2021, the revenue increased by 60.02% year-on-year, and the net profit attributable to the parent company increased by 48.46% year-on-year. The company achieved a revenue of 913 million yuan in 2021, with a year-on-year increase of 60.02%; The net profit attributable to the parent company was 550 million yuan, with a year-on-year increase of 48.46%. The continuous and rapid growth of performance was mainly due to the continuous growth of orders for the main medium power laser processing control system business, the large growth of orders for the bus system and the breakthrough of intelligent cutting head business. In 2021, the gross profit margin / net profit margin of the company was 80.29% / 60.09%, with a year-on-year decrease of 0.44/4.66 PCT; The company’s sales / management / Finance / R & D expense ratio was 4.63% / 6.62% / – 3.56% / 15.12% respectively, with a year-on-year change of -0.09 / – 0.50 / – 3.18 / + 0.75 PCT. the significant decrease in the financial expense ratio was mainly due to the increase in interest income caused by the transfer of trading financial assets to deposits.
Expand category layout and new business, and continue to make breakthroughs in intelligent laser cutting heads. The company is the leader of China’s laser cutting control system. With strong R & D ability, it forms technical barriers. Its products have obvious advantages in stability, reliability, precision, speed and ease of use. In 2021, the company’s business revenue of servo system / board system / bus system was 300 / 290 / 140 million yuan respectively, with a year-on-year increase of 36.13% / 37.66% / 98.78%. In terms of medium and low power, the Chinese market share of board system still ranks first; In terms of high power, the bus system further accelerates the pace of import substitution, and China’s market share continues to increase. At the same time, the company’s fixed increase has been implemented. The number of shares issued this time is 3665400, the price is 266.68 yuan / share, and the net fund raised is 958 million yuan, of which: 1) 378 million yuan is used for the intelligent cutting head project (with a total investment of 618 million yuan). The laser cutting head can be combined with the laser cutting control system to form an integrated solution to improve the overall competitiveness; 2) 300 million yuan is used for the industrialization project of intelligent welding Siasun Robot&Automation Co.Ltd(300024) and control system (with a total investment of 407 million yuan), which cuts into the downstream welding process of intelligent cutting, which can improve the vertical penetration in the customer’s production process; 3) 300 million yuan is used for ultra-high precision drive control integrated R & D project (with a total investment of 404 million yuan) to make up for the company’s technical gap in driver development. With the intelligent cutting head and welding Siasun Robot&Automation Co.Ltd(300024) gradually introduced to the market, the product combination strategy of “software and hardware coordination and intelligent control” of control system + intelligent hardware has increasingly played a key role. The company is expected to break the monopoly of foreign manufacturers in the field of self-developed laser cutting head, form a higher technical barrier with the control system, open the business space of the company and continue to be optimistic about the long-term growth potential of the company.
Risk tip: the expansion of new products is less than expected; The development of laser industry is less than expected.
Investment suggestion: the company continues to consolidate the leading position of laser cutting control system, the intelligent cutting head has made a smooth breakthrough, and the welding Siasun Robot&Automation Co.Ltd(300024) is expected to open up more growth space. We expect the net profit attributable to the parent company in 20222023 to be 773 / 1023 / 1363 million yuan, eps7.5 billion yuan 70 / 10.20/13.58 yuan, corresponding to 35 / 27 / 20 times of PE value, maintaining the “buy” rating
