\u3000\u3 Shengda Resources Co.Ltd(000603) Leon Technology Co.Ltd(300603) 300)
Q1 continued the trend of rapid expansion, with performance growth exceeding expectations. The company achieved a revenue of 640 million yuan in 2022q1, an increase of 55% at the same time; The net profit attributable to the parent company was 110 million yuan, an increase of 41% at the same time, exceeding the market expectation (the company previously predicted that the net profit attributable to the parent company in Q1 was 100 million yuan, an increase of 36% at the same time); The net profit attributable to the parent company increased by 43% after deducting non profits.
As of the end of the year, the company continued to expand its business scale of 1.25 million high-altitude operation platforms, ranking the second in the country, with the number of key high-altitude operation platforms increasing by the same year. The revenue of 2022q1 aerial work platform is 300 million yuan, accounting for 47% of the company’s total revenue, with a significant year-on-year increase of 114%. Aerial work platform has become the main driving force for the company’s scale expansion and profit growth. Despite the high base of Q1 last year, the increasing downward pressure on the economy in Q1 this year and the repeated outbreaks in many places across the country, the company still achieved rapid growth in revenue performance, highlighting the good overall demand of the aerial work platform leasing industry and the excellent business development ability of the company.
The gross profit margin has declined, the scale effect appears, and the cost rate continues to decline. The gross profit margin of 2022q1 company is 43.6%, yoy-7.0 PCT, and the gross profit margin has decreased. It is estimated that the main reasons are: 1) the rapid increase in the amount of equipment and the superposition of the impact of the epidemic, resulting in a slight decrease in the rental rate of the company’s aerial work platform; 2) The proportion of low gross profit products in construction support equipment has increased, which has dragged down the overall gross profit margin level of the company. During the period, the expense rate was 27.4%, yoy-0.7 PCT, of which the sales / management / R & D / financial expense rates were yoy + 1.0 / – 0.7 / – 0.8 / – 0.2 PCT respectively. The increase in the sales expense rate was mainly due to the increase in the company’s personnel and the corresponding increase in employee compensation; The rate of management and R & D expenses continues to decline with the continuous and rapid expansion of the company’s scale and the emergence of scale benefits. The income tax rate is 13.4%, yoy-4.1 PCT. The net interest rate is 16.7%, yoy-1.6 PCT. The net operating cash flow inflow of Q1 company was 250 million yuan, a year-on-year decrease of about 80 million yuan. It is expected that the epidemic will affect the collection rhythm, and some taxes in previous years will be deferred to Q1 this year under preferential tax policies. The cash to cash ratio is 112%, and yoy-28 PCTs.
Asset light business is the next city to help continuously improve profitability. Asset light has become one of the company’s current development strategies. Last year, the subsidiary of thermolink Huatie, which cooperated with thermolink group for asset light, has been officially put into operation. It is planned that the total investment scale will not be less than 3 billion yuan for the purchase of leased assets within three years, and the young asset business has generated about 120 million income in 2021. Recently, the company has conducted strategic cooperation with XCMG Guanglian leasing, a wholly-owned subsidiary of XCMG group, in the direction of asset light. The initial cooperation amount is 500 million yuan, which is expected to further reduce the company’s capital constraints, expand the scale of equipment under management and improve the level of roe. In addition, the two sides will conduct in-depth cooperation on the trusted uplink T-box products launched by the company in the early stage, actively explore the role of Internet of things, blockchain and other technologies in equipment leasing operation, and create the first mover advantage of trusted development of construction machinery.
Investment suggestion: we predict that the net profit attributable to the parent company from 2022 to 2024 will be RMB 670 / 9.0 / 1.2 billion respectively, with an increase of 34% / 34% / 33%, EPS will be RMB 0.74/1.00/1.33 respectively, CAGR will be 34% from 2021 to 2024, and the current share price corresponding to PE will be 16 / 12 / 9 times, maintaining the “buy” rating.
Risk warning: downward risk of rental rate of main equipment; The risk of rent decline due to the intensification of industry competition; The promotion of asset light business is less than the expected risk, etc.
