Guizhou Space Appliance Co.Ltd(002025)
Event: the company released its 2021 annual report, and achieved an annual operating revenue of 5.038 billion yuan, a year-on-year increase of 19.43%; The net profit attributable to the parent company was 487 million yuan, a year-on-year increase of 12.37%. Among them, Q4 achieved an operating revenue of 1.365 billion yuan, a year-on-year increase of 12.26%; The net profit attributable to the parent company was 94 million yuan, a year-on-year decrease of 25.34%.
Comments:
The gross profit margin decreased year-on-year due to the rise of costs, and the expense rate decreased slightly during the period: the company's comprehensive gross profit margin in 2021 was 32.62%, down 1.79pct year-on-year, mainly due to the increase in the supply price of metals and chemical materials required for production compared with the same period of last year. During the period, the expense rate was 19.91%, a year-on-year decrease of 1.17pct, of which the management expense increased by 20.05% year-on-year, mainly because the company enjoyed the preferential policy of reducing and exempting social insurance premiums in 2020 due to the impact of the epidemic; R & D expenses increased by 17.72% year-on-year, mainly because the company continued to increase R & D investment in projects such as high-speed backplane connector and photoelectric transmission integration.
Sufficient orders and substantial increase in operating cash flow: the company's inventory increased by 58.97% year-on-year, with a large proportion of raw materials and products in process, reflecting the company's sufficient main business orders. In order to ensure the timely delivery of products, the company moderately increased the material procurement and production scheduling required for customer order production. Contract liabilities increased by 662.83% year-on-year, which is due to the increase in advance payment received by the company from customers compared with the beginning of the year. Cash flow from operating activities increased by 1138% year-on-year, mainly due to the following reasons: first, the company took effective measures to strengthen loan recovery; Second, the company received prepayments from customers, with a year-on-year increase.
Fixed value-added projects are implemented, and the follow-up development can be expected: in August 2021, the company raised 1.431 billion yuan through fixed value-added projects for the industrialization of special connectors and special relays, the annual output of 1.53 million light modules for new infrastructure, the annual output of 39.762 million connectors for new infrastructure and other fields, the industrialization of Guizhou Linquan micro special motor, and the acquisition of aerospace Linquan operating assets, There are 6 projects to supplement working capital. The construction period of the project is three years. After all the projects are completed, the company is expected to bring more than 2 billion yuan of income to the company, laying a foundation for subsequent development.
Profit forecast, valuation and rating: considering the uncertainty of the company's revenue growth and capacity release, the company lowered its profit forecast of 17.41% / 19.03% to 635 million yuan / 788 million yuan in 202223, predicted a profit of 945 million yuan in 2024, EPS of 1.40/1.74/2.09 yuan in 202224, and the corresponding PE of the current stock price is 41 / 33 / 28x respectively. Benefiting from the continuous promotion of national defense construction and the continuous improvement of the informatization level of weapons and equipment, the company's revenue and profit are expected to continue to increase; And consider the space provided by the fixed increase project to support the company's future performance growth, and maintain the company's "buy" rating.
Risk warning: the risk of declining market demand under the influence of macro-economy; The risk that the R & D Progress of new and highly reliable products is less than expected; The competition risk brought by the intensified competition in the defense connector market.
