\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 118 China Spacesat Co.Ltd(600118) )
Event: the company recently released its 2021 annual report, with annual revenue of 7.06 billion yuan, yoy + 0.7%; The net profit attributable to the parent company is 230 million yuan, yoy-34.0%; Deduct non net profit of RMB 200 million, yoy-37.7%. The annual performance was lower than the previous market expectations, mainly due to the impact of pricing policies on the gross profit margin of aerospace manufacturing products and the increase of development costs of some projects.
Pricing policies affect the overall gross profit margin of the company. In 2021, the company's aerospace manufacturing and satellite application business achieved a revenue of 7.01 billion yuan, yoy + 0.8%, accounting for 99.3% of the total revenue. In a single quarter, from 2021q1 to Q4, the company achieved revenue of 1.36 billion yuan, 1.7 billion yuan, 1.2 billion yuan and 2.8 billion yuan respectively; The net profit attributable to the parent company was 56 million yuan, 97 million yuan, 60 million yuan and 19 million yuan respectively. In 2021, the company's gross profit margin was 12.87%, a year-on-year decrease of 0.93ppt. The gross profit margin in a single quarter was 14.2%, 11.9%, 19.4% and 10.0% respectively; The net interest rates were 5.0%, 6.9%, 6.3% and 2.2% respectively. Reasons for the decline of profit margin: 1) the gross profit margin of aerospace manufacturing business is reduced due to the influence of relevant product pricing policies; 2) According to the needs of customers, the company has added development contents for some tasks, resulting in an increase in project costs.
During the period, the cost rate increased by 0.9ppt to 8.35%. In 2021, the company's expense rate increased during the period. Specifically, 1) the sales expense rate was 1.4%, with a year-on-year increase of 0.2ppt; 2) The management fee rate was 4.4%, with a year-on-year increase of 0.2ppt; 3) The financial expense ratio was - 0.2%, with a year-on-year increase of 0.4ppt, which was caused by the depreciation and interest expenses respectively accrued for the use right assets and lease liabilities recognized at the beginning of 2021, and the significant decrease in the average daily deposit of the subsidiary Aerospace Dongfanghong compared with the same period of the previous year; 4) The R & D cost is 190 million yuan, yoy + 5.6%; The R & D expense rate was 2.7%, with a year-on-year increase of 0.1ppt.
Contract liabilities increased significantly; Payment collection has improved. By the end of 2021, the company had: 1) accounts receivable and bills were 1.89 billion yuan, a decrease of 13.4% over the beginning of the year; 2) The advance payment was 390 million yuan, a decrease of 42.8% over the beginning of the year, which was due to the cost of outsourcing fees and material purchase funds carried forward; 3) The inventory was 2.58 billion yuan, an increase of 22.6% over the beginning of the year; 4) Contract liabilities amounted to 1.05 billion yuan, an increase of 112.9% over the beginning of the year, mainly due to the increase of newly signed contract funds received in advance by the subsidiary Aerospace Henan Hengxing Science & Technology Co.Ltd(002132) in advance; 5) The net operating cash flow was 2.07 billion yuan, from negative to positive, an increase of 2.14 billion yuan over the beginning of the year, mainly due to the cyclical impact of the transition from the 13th five year plan to the 14th five year plan. Most projects were completed and signed at the end of the year. At the same time, the subsidiaries Aerospace Dongfanghong and aerospace Henan Hengxing Science & Technology Co.Ltd(002132) were paid at the end of the year, and the company's payment collection increased by 1.83 billion yuan over the same period of the previous year.
Investment suggestion: "the 14th five year plan" is an important development opportunity period for the company. As a listed company of Aerospace Hi-Tech Holding Group Co.Ltd(000901) group, which also has the main business of aerospace manufacturing and satellite application, the company successfully completed the launch of 30 small / micro satellites in 2021. At the same time, the first batch of modification orders for civil aviation Beidou tracking and monitoring equipment were delivered, the Remote Sensing Meteorological Satellite completed the acceptance of many projects, and the comprehensive supporting and intelligent industry sector also operated smoothly. Taking into account the company's technical advantages in the field of China's small satellite manufacturing and satellite communication information chain, we expect the net profit attributable to the parent company from 2022 to 2024 to be 279 million yuan, 326 million yuan and 378 million yuan respectively. The current share price corresponds to 89x / 76x / 66x PE from 2022 to 2024. For the first time, give a "cautious recommendation" rating.
Risk warning: competition intensifies risk; Product R & D risk; Macro policy change risk.
