\u3000\u3 Jiangsu Eastern Shenghong Co.Ltd(000301) 058 Cofco Engineering & Technology Co.Ltd(301058) )
Report summary
Focusing on grain and oil and cold chain, the business scale has grown steadily.
(1) the company has been deeply engaged in the grain and oil processing industry for 68 years. In 2017, the company acquired Huashang international, a subsidiary of COFCO group, to expand the cold chain logistics business. The company is mainly engaged in grain and oil price equipment manufacturing business, grain and oil processing and professional engineering services in cold chain logistics industry, including design consulting, electromechanical engineering system delivery and engineering contracting. In the first half of 2021, the scale of electromechanical engineering system delivery business dominated, accounting for 38.73%; The gross profit margin of design consultation is the highest, reaching 45.16%.
(2) the company's business scale grew steadily. In 2021, the company achieved an operating revenue of 2.170 billion yuan, a year-on-year increase of 6.30%; The net profit attributable to the parent company was 161 million yuan, a year-on-year increase of 25.12%. Profitability improved rapidly. In the first three quarters of 2021, the company's gross profit margin was 22.92%, with a year-on-year increase of 5.88pct; The net interest rate was 6.75%, with a year-on-year increase of 3.34pct.
(3) the actual controller of the company is COFCO group, which indirectly holds 42.89% of the shares of the company. The company has five employee stock ownership platforms, encouraging 151 key employees (accounting for 8.24% of the total number of employees in 2020) and holding 17.40% in total, which is conducive to improving the enthusiasm and stickiness of core employees and promoting the rapid development of the company.
Industrial policy + downstream high scenery promotes the development of the industry, and the company leads the development of the industry.
(1) industrial development policies promote the healthy development of the industry. Grain, oil and cold chain professional engineering service industry is an important industry related to the national economy and the people's livelihood. It is an industry that the state focuses on encouraging and supporting development. The State Council, the national development and Reform Commission, the State Food Administration, the Ministry of housing and urban rural development, the Ministry of agriculture and other government departments have successively issued a series of industrial development policies to guide the healthy development of the industry.
(2) the high demand of downstream customers promotes the rapid development of grain, oil and cold chain professional engineering service industry. On the one hand, in the context of food safety and consumption upgrading, residents' demand for high-quality Shenzhen Agricultural Products Group Co.Ltd(000061) continues to increase, promoting grain and oil processing enterprises to increase their demand for production line transformation and workshop technology upgrading. On the other hand, the safety, environmental protection, energy conservation and other indicators of the stock of cold chain facilities need to be improved. The Winter Olympic Games drive the demand for ice and snow sports venues, and the demand for cold chain and special ice and snow has increased greatly.
(3) grain and oil machinery industry still has great room for growth. In recent years, driven by agricultural machinery subsidies, China's agricultural mechanization process has accelerated, the demand for agricultural machinery is strong, and the total output value of agricultural machinery industry has always been growing steadily, from 280 billion yuan in 2010 to 552.3 billion yuan in 2019, with an annual compound growth rate of 8%; The structure of agricultural machinery has been optimized steadily, and the internationalization of agricultural machinery has shown an obvious trend.
(4) China's grain and oil processing enterprises are developing in the direction of large-scale and collectivization. The number of high-end grain and oil machinery customers is increasing. The customers pay more attention to brand protection, and the requirements for product quality, failure rate, stability, safety and technology advancement are also increasing. They are inclined to select large scale well-known grain and oil machinery suppliers. This trend will help advanced technology and large-scale grain and oil equipment manufacturers to gain more customers and enhance market share.
(5) the company has a deep brand heritage and is more widely used in subdivided industries. From the perspective of project experience and technology R & D level, the company has successively built a large number of model projects with important influence in the industry; In terms of the number of industry standards formulated, the company has taken the lead in drafting and formulating nearly 100 important industry standards in recent years, and has the top technical voice in the industry; From the position of grain and oil machinery manufacturing products, the company is in a leading position in the grain and oil machinery manufacturing industry and has manufactured products with technical and brand advantages.
For the first time, give a "overweight" rating. We estimate that the company's revenue from 2021 to 2023 will be 2.170 billion yuan, 3.153 billion yuan and 4.338 billion yuan respectively; Increased by 6.30%, 45.35% and 37.58% respectively year-on-year; The net profit attributable to the parent company was 161 million yuan, 297 million yuan and 444 million yuan respectively, with a year-on-year increase of 25.12%, 83.83% and 49.57% respectively; EPS is 0.32 yuan, 0.58 yuan and 0.87 yuan respectively; According to the share price on April 14, 2022, the corresponding PE is 59.2, 32.2 and 21.5 times respectively. Benefiting from the "food security" policy and the new era of ice and snow sports, as a leading company in China's grain and oil equipment engineering and cold chain logistics, the company's market share is expected to increase rapidly in the future; For the first time, give a "overweight" rating.
Risk warning: Macroeconomic Fluctuation and investment structure adjustment risk; The risk of New Coronavirus pneumonia; The risk of declining profitability due to intensified industry competition; The risk of failure of scientific and technological innovation; The risk that the technology research and development fails to achieve the expected results; The risk that the information and data used in the research report are not updated in time.
