\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 48 Fujian Nebula Electronics.Ltd(300648) )
Event: the company released its annual report for 2021, and achieved an operating revenue of 811 million yuan in 2021, with a year-on-year increase of 41.02%; The net profit attributable to the parent company was 76 million yuan, a year-on-year increase of 33.42%, which was lower than our expectation, mainly due to the impact of the rise in the price of raw materials and the provision of asset impairment losses in the fourth quarter of 2021.
Breakthroughs have been made in chemical capacity separation equipment, and the proportion of Contemporary Amperex Technology Co.Limited(300750) revenue has expanded.
The lithium battery equipment business continued its growth trend, with an operating revenue of 643 million yuan in 2021, a year-on-year increase of 27.35%. In terms of orders, the company obtained orders of 512 million yuan from Contemporary Amperex Technology Co.Limited(300750) in 2021, with a year-on-year increase of 138%. Among them, the chemical capacity separation equipment is 142 million yuan, marking the company’s further expansion of the lithium battery downstream equipment industry chain. In January 2022, the company again obtained 146 million yuan of orders from Contemporary Amperex Technology Co.Limited(300750) including chemical fractionation equipment. Compared with the testing equipment, the unit investment of chemical separation equipment is higher, which will become an important growth point of the company’s business in the future. In terms of customer structure, Contemporary Amperex Technology Co.Limited(300750) accounted for 48% of the company’s revenue in 2021, an increase of 8.3pct compared with 2020. This is mainly due to the further appearance of head effect in the field of power battery. In terms of gross profit margin, the gross profit margin of lithium equipment decreased by 2.83pct to 41.58%, mainly due to the change of product structure and the decrease of the proportion of 3C products with high gross profit.
The test service business realized an operating revenue of 116 million yuan, a year-on-year increase of 155.73%. The main reason is that the company cooperates closely with Contemporary Amperex Technology Co.Limited(300750) to not only provide battery performance testing laboratory service contracting services for Contemporary Amperex Technology Co.Limited(300750) but also provide strong support for its testing business in the process of R & D. The gross profit margin of the sector increased by 13.54pct to 61.09%. Testing service is not only an important source of profit for the company, but also an important channel for the company to maintain stickiness with key customers. Relying on the cooperation in the front-end R & D stage also helps the company to continuously improve its product competitiveness. Other business income was 46 million yuan, a year-on-year increase of 105.83%. We think it is mainly driven by energy storage business. In terms of the operation of times nebula, a joint venture, the revenue of times Nebula in 2021 was 103 million yuan, a year-on-year increase of 145%. The company continues to layout in the field of energy storage and has great business growth potential.
Continue to increase R & D investment, and equity incentive binds the interests of the team. In 2021, the R & D investment of the company was 138 million yuan, accounting for 17.07% of the revenue, an increase of 281 PCT over 2020. The company issued the restricted stock incentive plan (Draft) for 2021, and the performance assessment requires that the operating revenue in 2022 should not be less than 1.3 billion yuan; The cumulative operating revenue in 2022 and 2023 shall not be less than 3.3 billion yuan.
Profit forecast, valuation and rating: the company relies on the extension of the product line from testing equipment to chemical separation, and the order amount has increased significantly. Due to the further increase of the proportion of major customers’ revenue and the change of product structure, we lowered the company’s net profit attributable to the parent company from 2022 to 2023 by 22.7% / 25.9% to 180 / 269 million yuan, increased the predicted net profit in 2024 to 414 million yuan, and the current share price corresponds to 29 times of PE in 2022. The company binds major customers, has clear growth momentum, and maintains the “buy” rating.
Risk warning: macroeconomic cycle fluctuation; Changes in preferential tax policies; Fluctuation of raw material cost, etc.
