\u3000\u3 China Vanke Co.Ltd(000002) 483 Jiangsu Rainbow Heavy Industries Co.Ltd(002483) )
Event: the company released the annual report of 2021. In 2021, the company’s revenue was 3.847 billion yuan, a year-on-year increase of 6.42%; The net profit attributable to the parent company was 349 million yuan, a year-on-year increase of 36.45%; Net profit deducted from non parent company was 285 million yuan, with a year-on-year increase of 35.87%.
Comments:
The main business performed well and the profitability increased significantly. In 2021, the installed capacity of Haifeng increased significantly, and the company’s offshore engineering equipment and supporting equipment achieved a revenue of 1.323 billion yuan, a year-on-year increase of 49.97%. In addition, with the expansion of production capacity and the promotion of the project, the hazardous and medical waste disposal business achieved a revenue of 632million yuan, a year-on-year increase of 38.95%. In addition, the revenue of renewable energy thermoelectricity, sludge treatment business and general equipment manufacturing was 195 million yuan, 87 million yuan and 60 million yuan respectively, with a year-on-year increase of 24.79%, 10.77% and 5.81%. Affected by the global epidemic and other factors, the company’s business revenue of material handling equipment and ship supporting equipment was 1.351 billion yuan and 58 million yuan respectively, with a year-on-year decrease of 21.70% and 69.66% respectively. The company’s profitability has been continuously improved. The gross profit margin of hazardous and medical waste disposal has reached 48.06%, with a year-on-year increase of 12.15%. The gross profit margin of marine engineering equipment and supporting equipment business is 19.02%, which is an excellent level in the industry. The company’s operation and management continued to improve, the expense rate decreased slightly during the period, and the sales expense rate / management expense rate / financial expense rate decreased by 0.46pct/0.07pct/0.23pct to 2.26% / 6.37% / 1.48% respectively. At the same time, the company increased R & D investment, and the R & D expense increased by 316 PCT to 160 million yuan year-on-year.
Pile foundation environmental protection double wheel drive, material handling has won large orders. In 2021, the installed capacity of offshore wind power increased significantly. The company delivered nearly 170000 tons of offshore wind power equipment products such as various offshore wind power foundation piles and stable pile platforms to customers, and the production and sales reached a new high. During the “14th five year plan” period, offshore wind power will continue to maintain a long-term high boom. At present, the company has a capacity of 300000 tons. With the improvement of capacity utilization, the company is expected to continue to benefit. At present, the disposal capacity of hazardous waste and medical waste exceeds 330000 tons, including 180500 tons / year of hazardous waste incineration, 107500 tons / year of comprehensive disposal and 43400 tons / year of medical waste disposal. At present, the production capacity ranks in the forefront of the industry. In addition, the material handling business has realized the strong complementarity of “Gema / genma” and “Koch”. A total of 153 sets of material handling equipment products have been delivered throughout the year, which has been highly praised by customers at home and abroad. The company entered into bulk material handling equipment system and on-site installation and commissioning service contracts of 242 million euros (about 1.9 billion yuan) and 911 million euros (about 6.6 billion yuan) with the National Meteorological Administration of the United Arab Emirates in July 2021 and January 2022 respectively, which provided a guarantee for the future performance of the company.
The state-owned assets holding company is empowered to further explore the development space of the company. In March 2022, Guangzhou industrial control completed the equity transfer and officially became the owner. Guangzhou industrial control prepared for the examination of Guangzhou Municipal People’s government. In the future, Guangzhou industrial control will vigorously support the company to build a high-end equipment industrial base in the south, expand the relevant markets of offshore wind power equipment, material handling equipment and environmental protection business in the Great Bay area of Guangdong, Hong Kong and Macao, further expand the production and marketing scale of the company and improve the overall profitability of the company. The company is expected to further open up market space with the help of controlling shareholders and achieve greater performance flexibility.
Maintain the “buy” rating: the company’s business structure of “high-end equipment + environmental protection” has a good development prospect and market activity in its industry. Driven by national policies, offshore wind power will have an ultra cyclical and high boom development trend. The material handling business has formed a dual brand collaboration, fully covering light and heavy bulk material transportation equipment. The company has great processing capacity in environmental protection, With the promotion of the policy, it is expected to obtain greater market share. The state-owned shareholders are about to take over, and all-round empowerment will lead the company into the high-speed growth channel, with good development prospects in the future. Considering the impact of the epidemic and other uncertain factors on the ship equipment and material handling business, the profit forecast for 2022 and 2023 is lowered. The operating revenue of the company from 2022 to 2024 is expected to be 5.264 billion yuan, 6.481 billion yuan and 7.886 billion yuan respectively (the original forecast was 5.560 billion yuan and 6.838 billion yuan in 2022 and 2023), with a year-on-year increase of 37%, 23% and 22% respectively. From 2022 to 2023, the net profit attributable to the parent company was RMB 475 million, RMB 643 million and RMB 808 million respectively (the original forecast was RMB 521 million and RMB 678 million in 2022 and 2023), with a year-on-year increase of 36%, 35% and 26% respectively. It is estimated that the EPS from 2021 to 2023 will be 0.50, 0.68 and 0.86 yuan respectively, and the corresponding PE will be 12.3, 9.1 and 7.2 times respectively, maintaining the “buy” rating.
Risk warning: policy promotion is not as expected; Intensified market competition; The market demand of downstream industries grows slowly.
