\u3000\u3 Bohai Water Industry Co.Ltd(000605) 117 Ningbo Deye Technology Co.Ltd(605117) )
Event: on April 20, 2022, Ningbo Deye Technology Co.Ltd(605117) issued the 2021 annual report. In 2021, the company realized an operating revenue of 4.168 billion yuan, a year-on-year increase of + 37.85%, and a net profit attributable to the parent company of 579 million yuan, a year-on-year increase of + 51.28%. Q4 company achieved an operating revenue of 1.139 billion yuan, a year-on-year increase of + 44.24%, and a net profit attributable to the parent company of 178 million yuan, a year-on-year increase of + 73.08%. It is proposed to pay a cash dividend of RMB 12 per 10 shares, with a dividend rate of 46.16% and a dividend rate of 0.61%; It is proposed to convert capital reserve into share capital, with 4 shares for every 10 shares.
Q4 performance met expectations and the inverter business grew rapidly. In terms of products, the heat exchange business achieved a revenue of 2.328 billion yuan in 21 years, a year-on-year increase of + 12.42%, accounting for 56.21% of the revenue. The increase in revenue was mainly due to the company’s increase in the ex factory unit price of products under the background of the rise in the price of raw materials; The revenue of inverter business reached 1.198 billion yuan, a year-on-year increase of + 262.34%, accounting for 28.92%. Among them, the revenue of energy storage / series grid connection / micro inverter was + 265.27% / 265.53% / 257.94% year-on-year respectively, and the three products maintained a high growth trend; The dehumidifier business achieved a revenue of 562 million yuan, a year-on-year increase of + 23.75%, accounting for 13.58%, of which the demand in the overseas market increased rapidly, the revenue was + 33.2% year-on-year, and the brand share was further expanded. In terms of regions, the domestic sales revenue was 2.879 billion yuan, a year-on-year increase of + 12.71%, and the export sales revenue was + 182.18%.
The profitability of inverter is strong, driving the gross profit margin to rise steadily. The gross profit margin for the whole year of 21 was 22.95%, with a year-on-year increase of + 0.31pct; The net interest rate was 13.88%, a year-on-year increase of + 1.23pct. Q4 gross profit margin was 25.32%, year-on-year + 1.60pct; The net interest rate was 15.62%, year-on-year + 2.60pct; Q4 gross sales difference dimension + 1.51pct year on year. In the first half of the year, the company prepared the main electronic components in advance to control the cost. In terms of expense ratio, without considering the change of sales expense caliber, the annual sales, management and R & D expense ratio is divided into 2.18%, 2.24 and 3.20%, respectively + 0.05, + 0.20 and -0.17pct year-on-year; Q4 sales, management and R & D expense rates are divided into 2.07, 2.77 and 3.21%, respectively + 0.09, + 0.74 and -0.05pct year-on-year.
The collection speed of accounts receivable has increased significantly. 1) In 21 years, the company’s cash + other current assets totaled 1.686 billion yuan, a year-on-year increase of + 218.04%, mainly due to the company’s IPO fund-raising during the reporting period; Contract liabilities + other current liabilities totaled 56 million yuan, a year-on-year increase of + 22.38%; Notes and accounts receivable totaled 276 million yuan, a year-on-year increase of – 14.86%; At the end of the year, the inventory was 456 million yuan, a year-on-year increase of + 41.79%, mainly due to the increase of spare inventory caused by the increase of inverter sales and the increase of raw material prices. 2) In terms of turnover, the company’s inventory turnover days in 21 years were + 5.06 days year-on-year; The turnover days of accounts receivable were 25.66 days, with a year-on-year increase of -8.48 days. The company’s collection of accounts receivable was strengthened. 3) The net operating cash flow of the company in 21 years was 797 million yuan, a year-on-year increase of + 75.59%; Q4’s net operating cash flow was 291 million, a year-on-year increase of + 39.71%, mainly due to the substantial growth of the company’s inverter revenue.
Vigorously invest in R & D and accelerate the localization and substitution process of inverter chips. In 2021, the global chip supply was tight, and the industry faced the risk of insufficient supply of imported chips and rising production costs. In response to this situation, the company increased relevant R & D investment, tested and completed the localization substitution of most chips, and effectively reduced the risks related to chip supply in the future. In addition, in response to the demand of overseas market, in the past 21 years, the company has invested heavily in R & D and successfully launched 8kw / 10kW / 12KW three-phase low-voltage household energy storage inverter, 15kw low-voltage split phase energy storage inverter and other brand-new products, improved the product matrix and further improved the market competitiveness. In the future, as the company further introduces high-end talents and improves the layout of products and new and old markets, it is expected to continue to expand, optimize and strengthen in the field of new energy.
Profit forecast: the company’s traditional main business of electric heat exchanger and dehumidifier business have grown steadily, and the second curve photovoltaic inverter business has set sail. With the continuous advancement of domestic substitution process and the continuous development of overseas markets, the company is expected to continue to maintain high-speed growth in the future. We estimate that the company’s operating revenue in 22-24 years will be 5.642/72.03/8.743 billion yuan respectively, with a year-on-year increase of + 35.4% / + 27.6% / + 21.6% respectively; The net profit attributable to the parent company was 875 / 12.00 / 1.518 billion yuan, with a year-on-year increase of + 51.2% / + 37.2% / + 26.5% respectively, corresponding to 38.57/28.12/22.22 times of PE.
Risk factors: rising raw material prices, fluctuations in downstream industries, dependence on the largest customer, exchange rate fluctuations, shortage of electronic components, foreign trade policies and the risk of deterioration of the international situation.
