\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 54 Donghua Testing Technology Co.Ltd(300354) )
Event: the company released the first quarterly report of 2022 and realized an operating revenue of 46.51 million yuan in 2022q1, a year-on-year increase of + 55%; The net profit attributable to the parent company was 4.76 million yuan, a year-on-year increase of + 364%.
Benefiting from the high outlook of the military industry, the revenue of 2022q1 company slightly exceeded the market expectation
In 2022q1, the company achieved an operating revenue of 46.51 million yuan, a year-on-year increase of + 55%. Under the background that the epidemic affected the delivery of some orders, it still increased significantly year-on-year, slightly exceeding the market expectation. From the perspective of business: 1) structural mechanical property test system: the demand of the military industry continues to be strong. Superimposed on the deferred confirmation income of some orders in December 2021, we judge that 2022q1 has achieved significant growth, which is the core driving force expected by the revenue side supermarket; 2) PHM: we judge that the revenue in the field of national defense and military industry is still growing rapidly, and the business development in the civil field is affected by some epidemic situations; 3) Electrochemical workstation: the income is still mainly concentrated in the field of scientific instruments such as colleges and universities and scientific research institutions, which has also achieved good growth.
The scale effect appeared & the impairment loss decreased and the profitability of Q1 increased significantly
In 2022q1, the company achieved a net profit attributable to the parent company of 4.76 million yuan, a year-on-year increase of + 364%, and a net profit deducted from non attributable to the parent company of 4.49 million yuan, a significant increase of + 402%, which is mainly due to the strong seasonality of the company’s income, the relatively low proportion of Q1 income (the proportion of Q1 income in 20202021 was 11% and 12%), the high expense rate and the low net profit base in 2021q1. In 2022q1, the company’s net profit margin on sales was 10.23%, a year-on-year increase of + 6.81pct; The net profit margin of non deductible sales was 9.65%, with a year-on-year increase of + 6.67pct, and the profitability was significantly improved. Specifically: 1) gross profit side: the gross profit margin of 2022q1 company’s sales is 66.95%, with a year-on-year decrease of -0.23pct, which is still maintained at a high level. 2) Expense side: during 2022q1, the expense rate was 56.48%, with a year-on-year rate of -2.42pct, showing a scale effect. Among them, the rates of sales, management, R & D and financial expenses were -5.90 / + 1.23 / + 2.06 / + 0.19pct year-on-year respectively. The increase in the rates of management and R & D expenses was due to the amortization of equity incentive costs of about 3.58 million yuan and the increase of R & D investment. It can be seen that the actual profitability of the company is better. 3) In addition, the credit impairment loss of 2021q1 is 2.17 million yuan, while that of 2022q1 is only 550000 yuan, which also promotes the improvement of profitability.
The main business of structural mechanics continues to grow rapidly, and PHM + electrochemistry opens up growth space
While stabilizing the leading position of structural mechanical property testing system, the company actively expands the field of PHM & electrochemical workstation, and the growth space continues to open. ① Structural mechanical property test: compared with the overseas leading American Ni, the company’s revenue and profit scale are still small, and it is expected to maintain rapid growth driven by the high outlook of the military industry & independent control. ② PHM: it is the core technology of modern weapons and equipment, and has broad application prospects in civilian markets such as intelligent manufacturing. The company is one of the few private enterprises in China that fully master the core technology of PHM, with great growth potential. ③ Electrochemical workstation: the company has perfect product series and has formed strategic cooperation with many universities. The demand of new energy industry will further open up growth space.
Profit forecast and investment rating: Based on the high outlook of the military industry, we maintain the forecast of the company’s net profit attributable to the parent company from 2022 to 2024 as 144 million yuan, 216 million yuan and 302 million yuan respectively, and the corresponding dynamic PE of the current stock price is 25 / 17 / 12 times respectively. The company has outstanding growth and maintains the “buy” rating.
Risk tip: the industry competition intensifies, the income is seasonal, and the progress of new business is less than expected.
