\u3000\u3 Guocheng Mining Co.Ltd(000688) 518 Shenzhen United Winners Laser Co.Ltd(688518) )
Core view
In 2021, the revenue increased by 59.44% year-on-year, and the net profit attributable to the parent company increased by 37.39% year-on-year. The company achieved a revenue of 1.4 billion yuan in 2021, a year-on-year increase of 59.44%; The net profit attributable to the parent company was 92 million yuan, with a year-on-year increase of 37.39%. On the one hand, the increase was mainly due to the low base number caused by the impact of the epidemic on production and equipment installation in 2020; On the other hand, there were many new orders signed in the previous year, and the production status returned to normal delivery in 2021, resulting in a significant year-on-year increase in operating performance in 2021.
The profitability remained stable in 2021, and the expense rate increased slightly during the period. In 2021, the company’s gross profit margin / net profit margin was 37.04% / 6.58%, with a year-on-year change of + 0.38 / – 1.05 PCT. In 2021, the company’s sales expense rate / management expense rate / financial expense rate / R & D expense rate was 5.99% / 18.91% / – 0.11% / 7.38%, with a year-on-year change of -1.25 / + 3.02 / – 0.60 / – 0.85 PCT. The increase of management expense rate was mainly due to the increase of management expense caused by the sharp increase of personnel.
The power battery business maintained high growth, with sufficient orders on hand. In 2021, the revenue of power battery / hardware and auto parts / IT consumer electronics / optical communication industry of the company was RMB 997 / 171 / 155 / 0.12 million respectively, with a year-on-year change of + 62.05% / + 42.47% / + 108.97% / – 13.01%. In 2021, the company signed 3.599 billion yuan of new orders (including tax), a year-on-year increase of 138.66%, of which 85.30% of the new orders came from the power battery industry, which provided a guarantee for the subsequent performance growth of the company.
Respond to market demand and actively expand production capacity. The production capacity of the company is mainly determined by the area of production site and the number of employees. In terms of site, 1) the 34000 square meter plant in phase II of Jiangsu base has been put into use in the first half of 2021, and the 52000 square meter plant in phase III has been constructed in the second half of 2021. 2) The 47000 square meter plant in phase I of Huizhou base has been put into use in the fourth quarter of 2021, and the 50000 square meter plant in phase II is expected to be completed in the second half of 2022. 3) The company plans to build 50000 square meters of plant and supporting facilities in Yibin. With the completion of the above construction projects, the company will add 233000 square meters of plant, with an area of more than three times that of the end of 2020. In terms of personnel, by the end of 2021, the company had 3517 employees, and 1615 new employees were added in 2021, an increase of 84.91% over the end of the previous year, mainly R & D, design, production and commissioning personnel. At present, the company is still expanding technical and production personnel and strengthening training to further improve production efficiency and expand production capacity. The significant expansion of site and personnel provides guarantee for the smooth delivery of orders.
Risk warning: risk of technology iteration and upgrading; Industry competition accelerates; Customer expansion was less than expected.
Investment suggestion: considering the abundant orders of the company and the strong demand for downstream power battery equipment, we maintain the net profit attributable to the parent company in 202224 as 295 / 431 / 549 million yuan, corresponding to pe28 / 19 / 15 times, and maintain the “overweight” rating.
