\u3000\u3 Guocheng Mining Co.Ltd(000688) 188 Shanghai Friendess Electronic Technology Corporation Limited(688188) )
Event:
The company issued the 2021 annual report after the closing on April 14, 2022.
Comments:
Deepen the advantages of high-end product portfolio and continue to broaden the industry-leading moat
In 2021, benefiting from the continuous growth of laser cutting processing demand outside China and the continuous expansion of downstream application scenarios, the company’s main business continued to grow steadily, realizing an operating revenue of 913 million yuan, a year-on-year increase of 60.02%; The net profit attributable to the parent company was 550 million yuan, a year-on-year increase of 48.46%; The net profit deducted from non parent company was 544 million yuan, with a year-on-year increase of 78.77%. In terms of products, the revenue of the servo system was 300 million yuan, a year-on-year increase of 36.13%; The card system realized a revenue of 290 million yuan, a year-on-year increase of 37.66%; The revenue of bus system was 140 million yuan, a year-on-year increase of 98.78%. In terms of medium and low power, the company’s board system still ranks first in China’s market share; In terms of high power, the bus system further accelerates the pace of import substitution, and China’s market share continues to increase. In addition, the company’s intelligent cutting head is gradually introduced to the market and quickly obtains high recognition from the market.
Combined with the company’s overall development strategy, adhere to multi-dimensional technological innovation
In 2021, the company’s sales, management and R & D expenses were 42 million yuan, 60 million yuan and 138 million yuan respectively, and the rates of sales, management and R & D expenses were 4.63%, 6.62% and 15.12% respectively. All expenses showed rapid growth, mainly due to the increase of salaries of various personnel, As well as the share payment amount generated after Baichu CNC gave part of its equity incentive of Shanghai bosci enterprise management center (limited partnership) to the core employees of bosci automation. By the end of 2021, the number of employees of the company had reached 413, with R & D personnel accounting for 45.04% and master’s degree or above accounting for 33.33%. The company has 97 patented technologies and a number of proprietary core technologies focused on five technical fields, forming a technology chain that can cover the whole process of laser cutting. The integrity of the technology system is the world’s leading and has been widely recognized by customers.
In April 2022, the company successfully raised 977 million yuan through the fixed increase, and the net amount raised after deducting the issuance expenses was 958 million yuan, which will be used for the production expansion project of intelligent cutting head, the industrialization project of intelligent welding Siasun Robot&Automation Co.Ltd(300024) and control system and the R & D project of ultra-high precision drive control. Building its own core technology system of intelligent laser cutting head will help the company break the foreign monopoly and improve the overall competitiveness of laser cutting control system business; The layout of intelligent welding field will help the company expand its business scope horizontally and meet the needs of steel structure enterprises for welding automation solutions; The ultra-high precision drive control integrated R & D project helps to make up for the vacancy in the company’s relevant technical fields and lay the foundation for the company’s future industrial layout.
Profit forecast and investment suggestions
The company is mainly engaged in product R & D and system sales in the field of laser processing automation. It has independent R & D capabilities in computer graphics, motion control, machine vision core algorithms and laser processing technology, and has a broad growth space in the future. It is predicted that the operating revenue of the company from 2022 to 2024 will be 1.254, 1.678 and 2.190 billion yuan, the net profit attributable to the parent company will be 738, 982 and 1.263 billion yuan, the EPS will be 7.36, 9.79 and 12.59 yuan, and the corresponding PE will be 35.95, 27.02 and 21.01 times. Since its listing, the company’s PE has mainly operated between 45-105 times. Considering the future growth of the company, the company is given 50 times of the target PE in 2022, with the corresponding target price of 368.00 yuan. Maintain the “buy” rating.
Risk tips
Covid-19 recurrent pneumonia; The prosperity of laser industry is less than expected; Low and medium power laser cutting control market competition intensifies; The research and development results of bus system are less than expected.
