\u3000\u30003 Bichamp Cutting Technology(Hunan) Co.Ltd(002843) 00284)
Core conclusion
Event: the company released its 2021 annual report. In 21 years, the company achieved a revenue of 5.119 billion yuan, a year-on-year decrease of 6.91%, and a net profit attributable to the parent company of 472 million yuan, a year-on-year increase of 21.53%. Among them, the revenue in Q4 was 1.994 billion yuan, a year-on-year increase of 0.98%, and the net profit attributable to the parent company was 212 million yuan, a year-on-year increase of 18.07%, which was in line with expectations.
Comments: income pressure, profit improvement. In the 21st year, the revenue was 5.119 billion yuan, a year-on-year decrease of 6.91%, mainly due to the impact of the epidemic and the strategy of reducing contracting business, and the business income of the group decreased. The net profit attributable to the parent company in 21 years was 472 million yuan, with a year-on-year increase of 21.53%, mainly due to the group’s strengthening of cost control and the high-quality and efficient selection and quality control of projects, the decrease of expenses and the thickening of profits.
Reduce management fees and increase profits through exchange. In 21 years, the gross profit margin of the company was 38.27%, with a year-on-year increase of 2.44 PCT, and the net profit margin was 9.79%, with a year-on-year increase of 2.25 PCT, which was mainly due to the company’s preferred projects. At the same time, the management was strengthened, and the expense rate decreased steadily. In terms of expense rate, the company’s rate during the 21-year period was 18.79%, a year-on-year decrease of 0.19pct. Specifically, the management rate was 10.91%, with a year-on-year increase of 1.36pct, the R & D rate was 4.19%, with a year-on-year decrease of 0.13pct, the sales expense rate was 2.04%, with a year-on-year increase of 0.33pct, the financial expense rate was 1.64%, with a year-on-year decrease of 1.76pct. The sharp decline in financial expense rate is mainly due to the exchange gain of 10.73 million yuan in 21 years (20 years – 67.87 million yuan).
The company actively explores the layout of diversified testing business market to meet the needs of new infrastructure. In recent years, the company has optimized, updated and iterated on the basis of the detection cloud platform, further expanded the detection business capabilities of railway detection, aviation detection, water conservancy detection, municipal detection, residential construction detection, measurement calibration, food detection and environmental detection, and actively explored the layout of diversified detection business markets. In the past 21 years, the company’s detection business has fully blossomed in Jiangsu, Guangdong, Zhejiang, Yunnan, Guizhou, Sichuan and other places.
Investment suggestion: it is predicted that the net profit attributable to the parent company in 22-24 years will be RMB 575 / 670 / 768 million, corresponding to pe15 / 13 / 12 times, maintaining the rating of “overweight”.
Risk warning: slowdown risk of infrastructure investment, bad debt risk of accounts receivable, project quality accident risk
