\u3000\u3 Shengda Resources Co.Ltd(000603) Leon Technology Co.Ltd(300603) 300)
Event: on the evening of April 19, the company released the first quarterly report of 2022.
Continuous high performance growth; In 2022q1, the revenue increased by 55% year-on-year and the performance increased by 41% year-on-year
The company’s Q1 revenue and performance continued to grow rapidly in 2022, with revenue of 643 million yuan, a year-on-year increase of 55% and net profit attributable to the parent company of 107 million yuan, a year-on-year increase of 41%, exceeding the previous performance forecast expectation (previous performance forecast of 103 million yuan). The net profit attributable to the parent company after deduction was 97 million yuan, a year-on-year increase of 43%.
As a result of the epidemic, the gross profit margin fell by 7 PCT year-on-year, and the period cost rate under the scale effect decreased by 0.7 PCT year-on-year
In 2022q1, the gross profit margin of sales / net profit margin of sales were 44% / 18.5% respectively. The gross profit margin fell by about 7pct year-on-year and the net profit margin fell by about 3.2pct year-on-year. It is expected that the decline in gross profit margin is mainly due to the increase in costs caused by the expansion of business scale, the superposition of the impact of the epidemic and the decline in the rental rate of leasing business. During 2022q1, the expense rate was about 27%, a year-on-year decrease of 0.7pct, and the sales / management / R & D / financial expense rate increased by 1.0pct/decreased by 0.7pct/decreased by 0.8pct/decreased by 0.2pct respectively year-on-year. We believe that with the slowdown of the epidemic, the prosperity of the industry will pick up, boost the rental rate, and the profitability of the company will pick up.
In the first quarter, the company’s aerial work platform sector developed strongly, and the steady growth of infrastructure real estate is expected to boost the prosperity of the industry
The company’s 2022q1 aerial work platform sector became the largest revenue sector, with a revenue of about 302 million yuan, a year-on-year increase of 114%, accounting for about 47% of the total revenue, an increase of 5pct over the whole year of 2021, reaching a record high. The scale of management equipment exceeded 54000, with a year-on-year increase of 122%, and the number of customers exceeded 66000, with a year-on-year increase of 129%. In March 2022, the company achieved a revenue of about 164 million yuan in the high-altitude operation platform sector, with a year-on-year increase of about 111%. The rental rate is expected to decline slightly in March due to the impact of the epidemic, resulting in a decline in the year-on-year growth rate in March alone in 2022 compared with the year-on-year growth rate from January to February. At present, the capital construction is growing steadily. In March 2022, the capital construction investment increased by 11.8% year-on-year (8.6% from January to February), rising sharply by 3.2pct, and the rhythm of 2022q1 special bonds accelerated (the issuance of Q1 accounted for about 36%, an increase of 5 or 7 PCT compared with the same period in 2020 / 2019). With the development of infrastructure in the second half of the year, the boom of aerial work platform will pick up, and the company’s aerial work platform leasing business is expected to increase significantly.
Continue to promote the layout of asset light mode, and work with XCMG Guanglian leasing to explore asset light cooperation
The layout of asset light mode of the company has been continuously promoted. Recently, the company has reached asset light cooperation with XCMG Guanglian leasing, with a cooperation amount of 500 million yuan, including but not limited to entrusted operation and management, sublease and other forms. In the future, the company is expected to take advantage of the strong capital chain advantages of XCMG group to further reduce capital constraints, expand the management scale of leased equipment, and further transform the scale advantages into sustainable development advantages.
Profit forecast
It is estimated that the company’s revenue from 2022 to 2024 will be 3.5/47/6 billion yuan, with a year-on-year increase of 35% / 33% / 29%; The net profit attributable to the parent company was 670 / 880 / 1.13 billion yuan respectively, with a year-on-year increase of 34% / 32% / 28%, corresponding to P / E16 / 12 / 9x. Maintain the company’s “buy” rating.
Risk tips
1) the repeated epidemic has led to the decline of rental rate; 2) Intensified competition leads to downward rent
