\u3000\u3 Guocheng Mining Co.Ltd(000688) 518 Shenzhen United Winners Laser Co.Ltd(688518) )
The company issued the annual report of 2021. 1) Throughout the year, the company achieved a revenue of 1.4 billion yuan, a year-on-year increase of + 59.44%, and a net profit attributable to the parent company of 92 million yuan, a year-on-year increase of + 37.39%; The net profit attributable to the parent company slightly exceeded the previous performance express; 2) From the fourth quarter alone, Q4 achieved a revenue of 484 million yuan (year-on-year + 21.00% / month on month + 23.55%) and a net profit attributable to the parent company of 36 million yuan (year-on-year – 34.04% / month on month + 11.75%).
The annual gross profit margin is basically the same as that of last year; The comprehensive gross profit margin of Q4 was 38.42%, up 2.48pct month on month. In 2021, the company’s comprehensive gross profit margin was 36.00%, a slight increase of 0.72 PCT year-on-year. It is commendable that the company’s comprehensive gross profit margin remained basically stable under the background of rising prices of raw materials and intensifying industrial competition. By industry, except for the slight decline in the field of power battery, the gross profit margin of other products has increased to varying degrees. Among them, the gross profit margin of consumer battery, power battery, optical communication, automobile and hardware is 48.92% / 31.74% / 57.21% / 46.39% respectively, with a year-on-year increase of + 4.60pct / – 0.46pct / + 8.12pct / + 5.25pct.
Sufficient orders on hand to support the company’s future performance development. 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, totaling about 3.070 billion yuan, providing guarantee for the subsequent performance growth of the company. The company’s production capacity is mainly affected by two factors: the area of production site and the number of employees. 1) in terms of site construction: 81000 square meters of plant and distribution facilities will be completed and put into use in 2021 (including 3.4 in Jiangsu phase II and 4.7 in Huizhou phase I); In the second half of 2021, 102000 square meters will be constructed (including Jiangsu phase III 5.2 + Huizhou phase II 5). In addition, Sichuan Yibin plans to open 50000 square meters of plant and supporting facilities. With the projects under construction put into operation in the second half of 2022, it is expected that the company’s production site will be increased from 101000 square meters at the beginning of 2021 to 253000 square meters. 2) In terms of personnel recruitment: the number of employees at the end of 2021 was 3517, with 1615 new employees throughout the year, an increase of 84.91% over the end of the previous year, mainly R & D, design, production and commissioning personnel. Due to the strong non-standard nature of the company’s products and high demand for technical and production personnel, the company is still expanding relevant personnel and strengthening training to further improve productivity and expand production capacity. We believe that with the continuous completion of plants, the maturity of personnel training and the continuous promotion of product standardization, the company’s net profit margin is expected to increase significantly in 2022.
Continue to maintain R & D innovation and enhance the competitiveness of the company. In 2021, the company’s R & D expense was 103 million yuan, a year-on-year increase of + 43.05%, and the R & D expense rate was 7.35%. In terms of laser R & D, the company also has the development and production capacity of YAG laser, semiconductor laser, fiber laser and blue laser, so as to realize partial replacement of lasers. In terms of automation R & D and process R & D, complete the R & D of new products and technologies for new battery structures such as blade batteries and technical difficulties such as high-precision welding. In addition, the company continues to strengthen information construction, vigorously promote standardization construction, improve some standardization in non-standard automatic manufacturing process and standardization in product delivery, installation and commissioning, minimize production costs and improve production efficiency.
Investment suggestion: as the leader of welding equipment, the company fully benefits from the industrial dividend of downstream lithium battery expansion. We expect the company to realize the net profit attributable to the parent company of RMB 326 / 515 / 685 million from 2022 to 2024, with a year-on-year increase of 254% / 58% / 33%. The current share price corresponds to PE of 25 / 16 / 12 times respectively, maintaining the “recommended” rating.
Risk tip: the plant construction is less than expected, the downstream lithium demand is less than expected, and the epidemic situation in China is repeated.
