\u3000\u3 China Vanke Co.Ltd(000002) 438 Jiangsu Shentong Valve Co.Ltd(002438) )
Core view
In 2021, the revenue increased by 20.45% year-on-year, and the net profit attributable to the parent company increased by 17.30% year-on-year. The company achieved a revenue of 1.91 billion yuan in 2021, with a year-on-year increase of 20.45%; The net profit attributable to the parent company was 253 million yuan, with a year-on-year increase of 17.30%. The performance growth was mainly due to the increase in the delivery of nuclear power valves and spent fuel reprocessing equipment and the increase in the demand of the energy industry for valves, flanges and forgings. In 2021, the gross profit margin / net profit margin was 31.23% / 13.27%, with a year-on-year decrease of 0.91/0.36 PCT, mainly due to the rise in the price of raw materials. In 2021, the company's sales / management / R & D / financial expense ratio was 5.60% / 4.45% / 4.17% / 0.56%, with a year-on-year change of -0.84 / - 4.35 / + 0.08 / - 0.55 PCT, and the company's overall expense ratio during the period was well controlled.
The net operating cash flow of the company was 199 million yuan, with a year-on-year increase of 32.05%, and the payment collection was good. In 2022, the company's business objectives are to increase revenue by 10% - 30% year-on-year and net profit by 15% - 35% year-on-year. New orders reached a new high, with a year-on-year increase of 119.59%. From the perspective of business, the company's Metallurgical / nuclear power / energy / energy-saving service revenue was RMB 4.88/5.05/5.71/110 million respectively, with a year-on-year change of -0.58%/+45.61%/+31.42%/-36.73%. The year-on-year decline in metallurgy was caused by the delay in the commencement of metallurgical projects due to the dual control policy; The growth of nuclear power is due to the increase in the delivery of nuclear power valves and spent fuel equipment; The growth of energy business is the result of the company's market development and the increase of sales volume; The year-on-year decline in energy-saving services is mainly due to the long construction investment period of the project, and the production restriction caused by the stricter maintenance of some blast furnaces and environmental protection. From the perspective of orders, the company added 5.033 billion yuan of orders in 2021, a year-on-year increase of 119.59%, reaching a new high, mainly due to the significant increase in orders for energy and energy-saving projects. Specifically, nuclear power (including R Project) / metallurgy / energy / Wuxi flange / Ruifan energy saving were 750 (2.07) / 6.00/2.02/6542827 billion yuan respectively, with a year-on-year change of + 14.50% / + 3.45% / + 32.89% / + 34.29% / + 576.32%.
Nuclear power has turned to positive and orderly development, and the company is expected to benefit in depth. In 2021, the state newly approved 5 nuclear power units. In the 14th five year plan, it is proposed that nuclear power will turn to positive and orderly development, and nuclear power is expected to form a trend of mass construction. As the leader of nuclear grade butterfly valve and ball valve, the market share of the company exceeds 90%, and the company is expected to benefit deeply. In addition, China's spent fuel reprocessing is imminent, and the market space is vast. The company has entered the field of spent fuel treatment, and has obtained an order of about 370million yuan in the first spent fuel reprocessing project. The second project is also in the bidding process. The prosperity of the nuclear power industry and the vast spent fuel space drive the company's performance to continue to grow.
Risk tips: changes in nuclear power development policies; New business expansion is less than expected; The price of raw materials fluctuates.
Investment suggestion: the company is the leader of special valves, with steady growth of metallurgical energy business and rapid growth of nuclear power business. At the same time, the company cuts into metallurgical general valves through "valve housekeeper" and continues to make breakthroughs in the field of energy saving and hydrogen energy valves. Considering the impact of the epidemic on the manufacturing industry, we lowered the net profit attributable to the parent company in 202224 to RMB 329 / 428 / 564 million (the value before 202223 was RMB 392 / 480 million), corresponding to 22 / 17 / 13 times of PE, and maintained the "buy" rating.
