\u3000\u3 Guocheng Mining Co.Ltd(000688) 395 Shenzhen Sine Electric Co.Ltd(688395) )
Performance summary: the company achieved an operating revenue of 445 million yuan in 2021, with a year-on-year increase of 10.55%; The net profit attributable to the parent company was 731869 million yuan, a year-on-year increase of 4.02%; The net profit deducted from non parent company was 66.45 million yuan, a year-on-year decrease of 0.26%; EPS is 0.93 yuan. Among them, the revenue in the fourth quarter was 844959 million yuan, a year-on-year decrease of 20.4%; The net profit attributable to the parent company was 137986 million yuan, a year-on-year decrease of 23.26%.
The frequency converter business is growing steadily and the profit is expected to recover. In 2021, the company’s general frequency converter business achieved a revenue of 194 million yuan, a year-on-year increase of 11.83%, and the gross profit margin was 34.86%, a year-on-year decrease of 3.75pp; The integrated special plane achieved a revenue of 143 million yuan, a year-on-year increase of 4.96%, and the gross profit margin was 36.14%, a year-on-year decrease of 3.34pp. The rise in the price of raw materials led to an increase in operating costs, which in turn affected the profitability of the company. In terms of volume and price, the sales volume of the company’s general frequency converters in 2021 was 225100 units, with a year-on-year increase of 15.95%, and the average price of products decreased to 862.60 yuan / unit; The sales volume of integrated special aircraft was 48200, a year-on-year decrease of 7.71%, and the average product price increased to 297466 yuan / set. We believe that despite the temporary decline of the company’s gross profit margin, the company remains at the forefront of domestic manufacturers compared with its competitors in the industry environment where the cost side continues to rise, and is expected to restore its profitability by reducing the cost of technology.
Servo products are widely used, and the products iterate quickly to consolidate their advantages. In 2021, the company’s servo business revenue was 990574 million yuan, with a year-on-year increase of 17.92%, and the business proportion increased to 22.24%, realizing steady growth. In terms of volume and price, the sales volume of servo products was 96700 units, with a year-on-year increase of 25.36%, and the average price decreased to 102477 yuan / unit. At present, the company’s servo products are widely used in polysilicon multi wire cutting machine, intelligent driving, brewing Siasun Robot&Automation Co.Ltd(300024) and other emerging industries in the photovoltaic industry. The growth of downstream demand promotes the realization of large-scale business. In addition, the full closed-loop and high-performance servo system of the company’s research project has entered the pilot stage. In the future, the company’s products will be widely applicable to occasions with higher precision and higher cost requirements, and the competitiveness of products is expected to be further improved.
Profit forecast and investment suggestions. It is estimated that the company’s revenue from 2022 to 2024 will be 601 million yuan, 719 million yuan and 838 million yuan respectively, and the net profit attributable to the parent company will maintain a compound growth rate of 26.34% in the next three years. The company is at the advanced level in the industry in terms of product quality, technical level and operation efficiency. In the long run, the performance is expected to be fully realized and maintain the “buy” rating.
Risk tips: risks of new product development; Risk of dependence on import of IC chips, IGBT and other electronic components.
