\u3000\u3 Guocheng Mining Co.Ltd(000688) 518 Shenzhen United Winners Laser Co.Ltd(688518) )
Event: the company released its annual report for 2021, and achieved an operating revenue of 1.4 billion yuan in 2021, a year-on-year increase of + 59.44%; The net profit attributable to the parent company was 92 million yuan, a year-on-year increase of + 37.39%.
The newly signed orders have increased significantly year-on-year, and the revenue end of the company will achieve rapid growth in 2022
In 2021, the company achieved an operating revenue of 1.4 billion yuan, with a year-on-year increase of 59.44%, in line with market expectations. On the one hand, the income base in 2020 is low due to the impact of covid-19 epidemic; On the other hand, in 2021, the number of employees of the company continued to grow, the production capacity continued to improve, and the delivery and confirmation of orders accelerated. By industry: ① the power battery industry achieved a revenue of 997 million yuan, with a year-on-year increase of 62.05%. It is the largest source of revenue for the company, mainly benefiting from the rapid expansion of downstream power batteries; ② The revenue of the consumer electronics industry was 155 million yuan, a year-on-year increase of 108.97%, mainly due to the company’s increased market development in related industries; ③ The revenue of automobile and hardware industry was 171 million yuan, with a year-on-year increase of 42.47%, continuing the rapid growth trend; ④ Optical communication and other businesses achieved revenue of 12 million yuan and 17 million yuan respectively, with year-on-year changes of – 13.01% and + 19.29% respectively. 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; At the same time, the company added 1615 employees in 2021, and the number of workers reached 3517 at the end of 2021. Sufficient orders + production capacity will ensure the continuous high-speed growth of the company’s revenue in 2022.
The sharp increase in the number of employees affects the current expense rate, and the inflection point of the company’s profitability has appeared
In 2021, the company realized a net profit attributable to the parent company of 92 million yuan, with a year-on-year increase of 37.39%, which was lower than the growth rate at the revenue end, and the profit level declined to a certain extent. The net profit margin of sales in 2021 was 6.58%, with a year-on-year increase of -1.05pct: ① at the gross profit margin end, the overall gross profit margin of the company in 2021 was 37.04%, with a year-on-year increase of + 0.37pct, and the gross profit margins of power battery, consumer electronics, automobile and hardware industries were 31.74%, 48.92% and 46.39% respectively, with a year-on-year change of -0.46pct +5.25pct, the gross profit margin of consumer electronics, automobile and hardware industry increased, driving the overall gross profit margin of the company. ② On the expense side, the company’s expense rate during 2021 was 32.16%, with a year-on-year increase of + 0.33pct, of which the sales / Management (including R & D) / financial expense rate changed by -1.24pct / + 2.18pct / – 0.59pct respectively year-on-year. The increase of management expense rate is related to personnel expansion. Considering the decrease of the period expense rate caused by the advance of expenses and the increase of per capita output value, we judge that the profitability of the company is expected to be significantly improved in 2022.
The company has benefited from the expansion of power battery production for a long time, and the horizontal expansion opens up room for growth
Benefiting from the wave of power battery production expansion, the company’s relevant business income will enter a period of rapid growth. In addition, the company continues to expand into the fields of automobile, consumer electronics and other fields to further open the growth space of the company: ① we predict that the global power battery laser welding equipment market will reach 25.7 billion yuan in 2025. The company deeply binds Contemporary Amperex Technology Co.Limited(300750) , and actively develops second and third tier customers, which will fully benefit from the large-scale expansion of production downstream; ② The development trend of automobile towards light weight and intelligence appears, and the advantages of laser welding technology will become increasingly prominent. Relying on the technology and customer resources accumulated in the field of power battery, the company has a certain first mover advantage; ③ Laser processing is in the golden rising period in the consumer electronics industry. The company is actively carrying out R & D layout, and there is a large growth space in the follow-up.
Profit forecast and investment rating: considering the order demand brought by the continuous expansion of the power battery industry, we maintain the company’s net profit attributable to the parent company in 20222023 to be RMB 327 million and RMB 614 million respectively, and expect the company’s net profit attributable to the parent company in 2024 to be RMB 890 million, and the corresponding dynamic PE of the current stock price is 25, 13 and 9 times respectively. As the leader of laser welding equipment in China, the company will fully benefit from the expansion of power battery production and maintain the “buy” rating.
Risk tip: the expansion of power battery production is less than expected, the increase of net interest rate is less than expected, and the delivery of orders is less than expected.
