\u3000\u3 Guocheng Mining Co.Ltd(000688) 768 Anhui Ronds Science & Technology Incorporated Company(688768) )
Core view
In 2021, the revenue increased by 50.54% year-on-year, and the net profit attributable to the parent company increased by 9.16% year-on-year. The company achieved a revenue of 397 million yuan in 2021, with a year-on-year increase of 50.54%; The net profit attributable to the parent company was 81 million yuan, a year-on-year increase of 9.16%; Net profit deducted from non parent company was 75 million yuan, with a year-on-year increase of 49.46%. In a single quarter, the revenue of 2021q4 reached 161 million yuan, a year-on-year increase of 45.88%; The net profit attributable to the parent company was 50 million yuan, a year-on-year increase of 40.18%. The company’s revenue from wind power business declined, but it actively expanded petrochemical, metallurgy, cement, coal and other fields to drive high revenue growth. In 2021, the gross profit margin / net profit margin / deduction of non net profit margin was 61.27% / 20.46% / 18.90%, with a year-on-year change of -7.61 / – 7.75 / – 0.14 PCT. the short-term decline in profitability was mainly due to the decline in the unit price of wind power products with high revenue, which led to the decline of 13.96 PCT in the gross profit margin of wind power business, the decrease in non recurring profits and losses such as government subsidies, and the deduction of non net profit margin of the company remained basically stable. The expense side decreased as a whole. In 2021, the company’s sales / management / R & D / financial expense ratio was 21.13% / 8.46% / 14.78% / – 0.90%, with a year-on-year change of -0.93 / – 3.22 / – 0.44 / – 0.91 PCT, with obvious scale effect. In the first quarter of 2022, the company achieved a revenue of 40 million yuan, a year-on-year increase of 50.24%; The net profit attributable to the parent company was -14 million yuan, with a year-on-year increase of 4.41%. Revenue continued to grow at a high rate, and higher expenses led to losses, but narrowed year-on-year.
Deeply cultivate wind power and expand petrochemical, metallurgical, cement, coal and other fields. By industry, the company’s revenue from wind power / Petrochemical / metallurgy / cement / coal industry in 2021 was RMB 114 / 1.06/0.82/0.31/0.29 billion, with a year-on-year increase of – 9.96% / + 164.25% / + 29.72% / + 441.03% / + 164.86%, accounting for 28.60% / 26.73% / 20.69% / 7.73% / 7.39%, and the proportion of non wind power business increased by 19.22 PCT. The company has deepened its wind power business, vigorously expanded petrochemical, metallurgy, cement, coal and other fields, increased customer coverage and re purchase rate, and increased its market share. In terms of profitability, the gross profit margin of wind power / Petrochemical / metallurgy / cement / coal business was 53.32% / 71.16% / 64.46% / 60.32% / 68.46% respectively, with a year-on-year change of -13.96 / – 5.77 / – 3.89 / + 14.32 / – 10.49 PCT. The gross profit margin of wind power business decreased significantly, mainly due to the decline in the unit price of wind power wired system products.
Equity incentive shows the company’s confidence in long-term development. In February 2022, the company launched the restricted stock incentive plan, which plans to grant 1119500 restricted shares (accounting for 2.04% of the total share capital) to no more than 444 people (accounting for 86.21%), covering a wide range, fully mobilizing the enthusiasm of employees and demonstrating development confidence.
Risk tip: the industry penetration is less than expected; The expansion of new fields is less than expected; Industry demand fell.
Investment advice: maintain the “buy” rating.
The company is a leader in China’s industrial equipment intelligent operation and maintenance industry. With good card position and strong competitiveness, it has occupied a leading position in the wind power industry. At present, it benefits from the development of the wind power industry and accelerates its penetration into metallurgy, petrochemical, coal, cement and other industries, with great growth potential. We maintain the profit forecast. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 113 / 178 / 248 million and EPS will be RMB 2.07/3.25/4.51, corresponding to pe29 / 18 / 13 times, maintaining the “buy” rating.
