\u3000\u3 Jiangsu Eastern Shenghong Co.Ltd(000301) 129 Runa Smart Equipment Co.Ltd(301129) )
The performance grew rapidly and maintained the “buy” rating
The company released its 2021 annual report. In 2021, it achieved a revenue of 530 million yuan, a year-on-year increase of 27.3%; The net profit attributable to the parent company was 170 million yuan, a year-on-year increase of 31.6%. The company is a leading provider of intelligent heating overall solutions, with the ability of software and hardware integrated solutions. The company has been deeply engaged in the industry for many years, has a deep understanding of all links of the heating industry, has a deep technical accumulation and takes the lead in market share. We maintain the profit forecasts for 20222023 and newly added 2024. It is estimated that the net profit attributable to the parent company in 20222024 will be 251, 331 and 425 million yuan respectively, the corresponding EPS will be 3.41, 4.50 and 5.76 yuan respectively, and the corresponding PE of the current stock price will be 15.8, 12.0 and 9.4 times respectively, maintaining the “buy” rating.
Event: the company released its 2021 Annual Report
(1) in 2021, the company achieved a revenue of 530 million yuan, a year-on-year increase of 27.3%; The net profit attributable to the parent company was 170 million yuan, a year-on-year increase of 31.6%. In the context of double carbon, the smart heating industry presents a high boom. The company actively grasps the industry opportunities and achieves rapid order growth. (2) The gross profit margin of the company was 55.07%, a year-on-year decrease of 1.36 percentage points, mainly due to the increase of labor costs. The company’s sales, management and R & D expense rates were 6.38%, 8.10% and 6.82% respectively, with a year-on-year decrease of 0.58%, 0.50 and 0.24 percentage points respectively, and the expense rate continued to be optimized.
Equity incentive stimulates growth vitality and is expected to fully benefit from the prosperity improvement brought by double carbon. The total carbon emission in the field of heating accounts for nearly 10% of the total carbon emission of the whole society. Under the background of double carbon, carbon reduction and energy conservation in the heating sector is the only way. The demand for the construction of heating system comes from the transformation of old residential areas and the construction of new residential areas. We estimate that the heating transformation scale of old residential areas in stock is 200 billion yuan, and the heating construction scale of new residential areas is 50 billion yuan every year, which has a broad space. Heating belongs to supporting infrastructure, which will be supported by the central government; In January 2022, the State Council issued the comprehensive work plan for energy conservation and emission reduction in the 14th five year plan. Heating and carbon reduction have been mentioned many times. Under the catalysis of the old reform and double carbon policy, smart heating is at the right time. The company has been deeply engaged in the heating industry for many years, and its products continue to iterate. It has a deep understanding of customer needs and accumulated high-quality customer resources. In March 2022, the company released the 2022 equity incentive plan, which is expected to bind the company’s core team and stimulate the company’s vitality. In the future, it is expected to fully benefit from the improvement of industry prosperity brought by double carbon.
Risk warning: risk of industrial policy change; Technology development risks; Market competition intensifies risks.
