\u3000\u3 Guocheng Mining Co.Ltd(000688) 518 Shenzhen United Winners Laser Co.Ltd(688518) )
Event overview
The company issued its annual report for 21 years. In 2021, the company achieved a revenue of 1.4 billion yuan, a year-on-year increase of 59.44%; The net profit attributable to the parent company was 92 million yuan, a year-on-year increase of 37.39%; Net profit after deduction of non return to parent was 69 million yuan, with a year-on-year increase of 65.80%.
Analysis and judgment:
In the 21st year, the expense rate remained high and the profitability was expected to improve
In 2021, the company achieved a revenue of 1.4 billion yuan / yoy + 59.39%, and a net profit attributable to the parent company of 92 million yuan / yoy + 37.39%, mainly due to the large number of new orders signed by the company in 2020 (1.508 billion yuan, including tax), and most of them contributed to the income and net profit in 2021. From the perspective of profitability, the gross profit margin of the company in 2021 was 37.04%, a slight increase of 0.37pct year-on-year, and the net profit margin was 6.58%, a slight decrease of 1.05pct year-on-year. The net profit margin of the company decreased slightly compared with the same period, mainly due to the increase of the company’s management expense ratio by about 3PCT to 18.91% year-on-year. In 2021, the company reserved a large number of personnel in advance to expand production capacity, with a large increase in management expenses, resulting in pressure on profitability. We believe that with the increase of the company’s per capita output value and the appearance of scale effect, the company’s profitability is expected to be significantly improved.
The accelerated expansion of power batteries led to a substantial increase in the company’s orders
1) the company has benefited significantly from the rapid expansion of power battery production. The production and sales of new energy vehicles are rising, the power battery industry continues to benefit, and the installed capacity continues to rise. According to the statistics of starting point lithium electric big data, in 2021, 25 mainstream power battery manufacturers in China invested in 69 expansion projects, and the new planned capacity reached 1894gwh. In 2021, under this background, the company’s newly signed orders increased significantly year-on-year by 138.66% to 3.599 billion yuan (including tax), of which 85.30% of the newly signed orders came from the power battery industry. In addition, according to the data released by sneresearch, the installed capacity of Contemporary Amperex Technology Co.Limited(300750) global power battery reached 96.7gwh in 2021, with a year-on-year increase of 167.13%, and the market share was nearly one-third. As a long-term partner of Contemporary Amperex Technology Co.Limited(300750) company, it is expected to achieve leapfrog growth.
2) the company has been deeply engaged in the field of laser welding for many years, especially specializing in the welding process of power battery. As of December 31, 2021, the company has been granted 208 patents (including 20 invention patents) and 193 software copyrights. At present, the company has completed the R & D stage of a number of power battery welding related technologies, with rich technical reserves. In the context of the high prosperity of the new energy vehicle industry, the development toughness of the company’s power battery welding business is strong.
3) laser welding is the key application in lithium battery manufacturing, and the market scale continues to increase. As a high-precision welding method, laser welding is extremely flexible, accurate and efficient. It can meet the performance requirements in the production process of power battery. At present, it has become the standard configuration of power battery production line. With the expansion of power lithium battery production and the increase of the value of laser welding equipment brought by the increase of penetration of new technologies such as 4680, the market scale of lithium laser welding equipment is expected to gradually increase.
Investment advice
Maintain the revenue forecast of RMB 2.930/4.334 billion from 2022 to 2023, and add the revenue forecast of RMB 5.799 billion in 2024; Slightly adjust the forecast of net profit attributable to parent company of RMB 339 / 692 million in 20222023 to RMB 334 / 615 million, add the forecast of net profit attributable to parent company of RMB 868 million in 2024, slightly adjust the EPS forecast of RMB 1.13/2.31 in 20222023 to RMB 1.11/2.06, and add the EPS forecast of RMB 2.90 in 2024, corresponding to the closing price of RMB 27.33/share on April 18, 2022, and the PE in 20222024 is 25 / 13 / 9 times respectively, maintaining the “overweight” rating of the company.
Risk tips
Capacity expansion is less than expected; The downstream prosperity is lower than expected; Industry competition intensifies.
