\u3000\u30003 Anhui Fuhuang Steel Structure Co.Ltd(002743) 00274)
Period expenses drag down performance, and future profits are expected to gradually reverse
The company released the annual report of 2021 and the first quarterly report of 2022, and the period expenses dragged down the company’s performance. In 2021, the company achieved an operating revenue of 24.137 billion yuan, a year-on-year increase of 25.15%, and a net profit attributable to the parent company of 1.583 billion yuan, a year-on-year decrease of 19.01%. In the first quarter of 2022, the company realized an operating revenue of 4.568 billion yuan, a year-on-year increase of 36.48%, and a net profit attributable to the parent company of 411 million yuan, a year-on-year increase of 6.26%. The decline in the company’s net profit was mainly due to the increase in sales expenses and the mention of credit impairment losses in the asset impairment plan. In 2021, the company increased the construction of overseas sales channels. At the same time, the loss of accounts receivable increased due to the delayed grid connection of some overseas power stations, and the impairment loss caused by the impact of the epidemic on the performance of some contracts. Looking forward to 2022, we believe that the company’s early investment will lay a solid foundation for future development, and the company’s expense rate is expected to gradually return to the normal level. We adjusted the profit forecast for 2022 / 2023 and added the profit forecast for 2024. It is estimated that the net profit attributable to the parent company from 2022 to 2024 is expected to reach 3.107 (- 6.38) / 4.111 (- 2.95) / 5.205 billion yuan, EPS is 2.09/2.77/3.50 yuan / share respectively, and the corresponding P / E ratio of the current stock price is 34.5/26.0/20.6 times respectively, maintaining the “buy” rating.
Photovoltaic inverter business maintains high growth, and the cost pressure is expected to be gradually relieved
The inverter business of the company maintains high growth, and the cost pressure is expected to be gradually relieved. In 2021, the company shipped 47gw photovoltaic inverters, with a year-on-year increase of 34% and a global market share of more than 23%. The operating revenue of photovoltaic inverter business was 9.051 billion yuan, with a year-on-year increase of 20.44%. Subject to the increase of raw material costs, the gross profit margin decreased by 1.23 PCT to 33.80%. In 2022, the company’s PV inverter shipment is expected to reach 70gw, and the market share will continue to rise steadily. At the same time, with the gradual release of IGBT supply, the cost side pressure is expected to be gradually relieved, and the gross profit margin of the company’s inverter business is expected to stabilize and recover.
The energy storage business has performed well and is expected to open up new profit growth points
The rapid growth of the company’s energy storage business is expected to open a new profit growth point for the company. In 2021, the shipment volume of the company’s energy storage system reached 3gwh, with a year-on-year increase of 275%. The energy storage business achieved an operating revenue of 3.138 billion yuan, with a year-on-year increase of 168.51%, accounting for 13% of the revenue. The energy storage market maintains a high outlook. The company’s energy storage system shipments have ranked first in the market for many consecutive years. It is expected to fully benefit from the rapid growth of the industry in the future.
Risk tips: intensified competition in photovoltaic market, less than expected expansion of overseas market, rising cost of raw materials, etc
