\u3000\u3 Guocheng Mining Co.Ltd(000688) 333 Xi’An Bright Laser Technologies Co.Ltd(688333) )
Event: Recently, the company released its annual report for 2021, realizing an operating revenue of 552 million yuan, a year-on-year increase of 33.92%, and a net profit attributable to the parent company of – 53 million yuan, a year-on-year decrease of 140 million yuan.
The share based payment fee resulted in negative net profit attributable to the parent company in 2021. The company implemented the incentive plan of granting restricted shares to incentive objects in November 2020, and confirmed the share payment fee of 173 million yuan in 2021, resulting in negative net profit attributable to the parent company in 2021. After deducting this part of expenses, the actual net profit attributable to the parent company was about 120 million yuan, an increase of 37.7% year-on-year.
The aerospace sector has made great efforts, and its revenue has increased rapidly. The company’s customized metal 3D printing products have a high market share in China’s aerospace additive manufacturing and metal parts products. Customers include subordinate units of AVIC, AVIC, aerospace science and industry, Aerospace Hi-Tech Holding Group Co.Ltd(000901) , COMAC and Airbus. In 2021, the company’s revenue in the aerospace field increased by 45.84% year-on-year, accounting for 57.27%. The revenue in the industrial field increased by 53.91% year-on-year, accounting for 32.11%. By product, the gross profit margin and revenue of self-developed 3D printing equipment further increased, accounting for 53.21% and 39.51% respectively, with a year-on-year increase of 2.59pct and 1.67pct. The gross profit margin and revenue of customized 3D printing products accounted for 48.89% and 50.35% respectively, with a year-on-year decrease of 10.82pct and 2.76pct.
Inventories and contract liabilities increased significantly, and a large number of projects under construction were transferred to fixed assets. The company’s inventory was 391 million yuan, an increase of 99.94% over the beginning of the period; Contract liabilities were 38 million yuan, an increase of 143.81% over the beginning of the period; It shows that the company has sufficient orders on hand and is active in production and preparation. The company’s fixed assets were 726 million yuan, an increase of 104.09% over the beginning of the period, mainly due to the construction of projects invested with raised funds and the conversion of projects under construction to fixed assets.
China’s largest metal additive manufacturer will fully benefit from the scale advantage in the future. During the reporting period, the preparation and application verification of titanium alloy and superalloy powder materials were completed, mass production was realized, and the production capacity reached more than 400 tons. Phase II metal additive manufacturing intelligent factory project was completed and put into production. The product application of additive manufacturing technology has gradually entered the stage of small batch production from customized products. The industrial chain maturity, cost reduction and manufacturing mode transformation brought by batch production will continue to expand the downstream customer group, and the company’s performance is expected to maintain high-speed growth.
Continue to increase R & D investment and consolidate its leading position in material addition. The company’s R & D expenses reached 4.07 billion yuan in 2021, a year-on-year increase of 4.01%. This is mainly due to the company’s promotion of industrial development through technological innovation, further strengthening the construction of R & D capacity, the increase in the number of R & D personnel and their salaries, and the increase in R & D projects. During the reporting period, the company broke through a number of technical difficulties in the optimization of additive manufacturing equipment, process, raw materials and structural design, obtained a number of patents, and further improved the stability of equipment and the engineering application of products. At present, the company has ten major projects under research. With the gradual implementation of research results, the company’s products are expected to further obtain market recognition and consolidate its leading position in the industry.
Investment suggestion: the company is a leading enterprise in the field of metal additive. The product layout is comprehensive, covering 3D printing equipment, 3D printing customized products, 3D printing raw materials, etc. The company has strong technical strength and its product performance is at the leading level in China. In the future, additive products will gradually enter the stage of mass production, and the company’s revenue is expected to maintain a high-speed growth trend. We predict that the net profit of the company from 2022 to 2024 will be 139 million yuan, 217 million yuan and 324 million yuan respectively, and the corresponding PE will be 84.2, 53.8 and 36.1 respectively. For the first time, give a “overweight” rating.
Risk tip: the downstream customer expansion is unfavorable, and the reliability of additive products is lower than expected.
