\u3000\u30003 Shanxi Yongdong Chemistry Industry Co.Ltd(002753) 00275)
Event: on April 19, 2022, the company released the annual report of 2021 and the first quarterly report of 2022. In 2021, the company's revenue was 309347400 yuan, a year-on-year increase of 8.64%; The net profit attributable to the parent company was 292239 million yuan, a year-on-year increase of 7.90%; In 2022, Q1 company's revenue was 770969 million yuan, a year-on-year increase of 40.10%, and the net profit attributable to the parent company was 8.0265 million yuan, a year-on-year increase of 55.25%, deducting non net profit of 6.9891 million yuan, a year-on-year increase of 59.78%; Equity incentive is released simultaneously. The total number of incentive objects granted by the incentive plan is 93, and the total number of restricted shares to be granted to the incentive objects is 4.26 million, with the grant price of 6.58 yuan, accounting for 2.2633% of the total share capital of the company at the time of announcement of the incentive plan. The incentive attribution assessment is based on the deduction of non net profit in 2021. The growth rate of deduction of non net profit in 2022, 2023 and 2024 shall not be less than 20%, 44% and 72.8% respectively.
Orders increased rapidly and fundamentals continued to improve. In 2021, the company's annual order amount was 495 million yuan, an increase of 48.09% over the same period of last year. The company's cash received from selling goods and providing labor services increased significantly. The net cash flow from Q1 operating activities in 2022 was 261465 million yuan, a year-on-year increase of 554.16%; Gradually separated from the government subsidy, the government subsidy of Q1 in 2022 was 120600 yuan, a year-on-year decrease of 84.56%.
Product standardization has achieved initial results, and the net interest rate has increased steadily. With the release and implementation of a series of policies and standards related to the construction of smart / smart mines issued by the state and local governments, the company has realized standardized production for existing products since 2021 and settled in the blue ocean market of smart mines in advance. At present, the company has established a standardized and intelligent operation and maintenance service platform that meets the requirements of ITSS standards. In 2022, Q1 net interest rate was 10.46%, with a year-on-year increase of 1.2%.
Focus on the existing business, strengthen the integration of technology chain and product chain, and lead or participate in the preparation of industry standards. With Chongqing Mas Sci.& Tech.Co.Ltd(300275) R & D center as the core, the company has efficiently completed the localization adaptation certification of Xiaoan Yilian industrial Internet operating system, and successively completed the adaptation and Optimization for domestic CPUs such as Kunpeng, Feiteng, Godson and Hisilicon, so as to realize the localization of core technology completely independent and controllable. At the same time, the company actively LED or participated in the preparation of relevant industry standards to improve the company's business synergy and market share. As an ISV independent software supplier, the company joined the Huawei Solution Partner Program, jointly launched the overall solution of coal mine data intelligence system with Alibaba cloud, and jointly promoted the implementation of coal safety production related projects. In August 2021, by acquiring 10% of the equity of Huayang Communication Technology Co., Ltd., the company integrated its advantageous products such as coal mine AI video products into the company's smart mine solutions, which helps to improve the competitiveness of the company's smart mine solutions.
Investment suggestion: as the core tool of sustainable coal production, smart mine shoulders the important mission of steady supply of China's coal production capacity. The wave composed of high demand of downstream customers + establishment of industry standardization + long-term high attention of policies is continuously determining the high prosperity of the industry. As a leading enterprise in the safety production of Shengeng coal mine for decades, the company will fully benefit from the development of the industry. It is estimated that the company's revenue from 2022 to 2024 will reach 533, 975 and 1413 million yuan respectively, and the net profit attributable to the parent company will be 84, 158 and 231 million yuan, corresponding to PE multiples of 25X, 13X and 9x, maintaining the "recommended" rating.
Risk tip: the promotion of smart mines is less than expected, and the repeated epidemic has brought the risk of delivery less than expected.
