\u3000\u30 Shenzhen Guohua Network Security Technology Co.Ltd(000004) 25 Xcmg Construction Machinery Co.Ltd(000425) )
In 2021, the net profit attributable to the parent company was 5.6 billion yuan, with a year-on-year increase of 51%, and the performance was in line with expectations
In 2021, the company achieved a revenue of 84.328 billion yuan, a year-on-year increase of 14%, and a net profit attributable to the parent company of 5.615 billion yuan, a year-on-year increase of 51%; The net profit after deducting non-profit was RMB 5.119 billion, a year-on-year increase of 51%. Among them, Q4 achieved a revenue of 14.531 billion yuan in a single quarter, a year-on-year decrease of 36%, and Q4 achieved a net profit attributable to the parent company of 1.005 billion yuan in a single quarter, a year-on-year decrease of 22%. The decline in Q4 in a single quarter was mainly due to the delayed commencement of the epidemic in 2020, resulting in a high base due to the delayed demand, and the performance was in line with expectations.
The ability of expense control continued to be strengthened, and the net profit margin of sales in 2021 increased by 1.6pct year-on-year
The company further promoted the strategy of risk control and cost reduction and efficiency increase, continued to build a "alliance, advance and retreat" supply chain system, and promoted cost reduction in the whole value chain. In 2021, the ability of cost control was enhanced. Under the rising price of raw materials, the gross profit margin of sales was 16% (down 0.8pct year-on-year) and the net profit margin of sales was 7% (up 1.6pct year-on-year). The interest expense decreased from 97.9% to 32.9% of the total income during the period.
New expansion of industrial layout, "new XCMG" is expected to be stronger!
In 2021, the company and its parent company XCMG Co., Ltd. made concerted efforts to realize that 12 types of main engines ranked first in China's industry, and the share of 22 types of products increased. Among them, the company's mobile cranes, hoisting machinery, piling machinery and horizontal directional drilling ranked first in the world; Road machinery and truck mounted cranes ranked third in the world, and loaders rose to fifth in the world. "New XCMG" is expected to be stronger. In the future, XCMG's construction machinery assets such as excavators (the second largest in China and the sixth largest in the world), concrete machinery (the third largest in China), mining machinery (the fifth largest in the world) and tower cranes (the second largest in the world) will be injected into listed companies. According to the performance commitment in the related party transaction report issued by the company on March 30, XCMG excavators The total net profit of tower crane from 2021 to 2024 will be RMB 1.5 billion, RMB 1.57 billion, RMB 1.63 billion and RMB 1.7 billion. According to this calculation, the net profit of "new XCMG" in 2022 is about RMB 8.2 billion.
In 2021, overseas revenue increased by 112% year-on-year, a record high, and continued to promote international layout
In 2021, the company achieved overseas revenue of 12.9 billion yuan, an increase of 112% year-on-year, accounting for about 15% of the company's total revenue, an increase of 7pct year-on-year. Among them, the export of medium and large equipment increased by 110% year-on-year, the export of pavement machinery increased by 92% year-on-year, and the export of truck cranes increased by 59% year-on-year. Exports from key regions grew rapidly, with a year-on-year increase of 50.8% in the Asia Pacific region, 129.8% in Central Asia and 93.1% in Africa. Major breakthroughs were made in the high-end markets in Europe and the United States. The company continues to promote the localization of manufacturing and talents. At present, the preliminary demonstration of projects in North America has been completed and the implementation is being accelerated. With the improvement of overseas and local response speed, the market share will increase again.
Investment suggestion: it is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 6.6/72/8 billion yuan, with a year-on-year increase of 17% / 10% / 10%, corresponding to PE of 6.4 / 5.9 / 5.3 respectively. Maintain buy rating.
Risk tips: 1) capital construction and real estate investment are not as expected; 2) The progress of asset injection was less than expected.
