\u3000\u30 Xuchang Ketop Testing Research Institute Co.Ltd(003008) 55 Jiangsu Toland Alloy Co.Ltd(300855) )
Event: Jiangsu Toland Alloy Co.Ltd(300855) released the 2021 annual report. In 2021, the company achieved an operating revenue of 698 million yuan, a year-on-year increase of + 27.7%; The net profit attributable to the parent company was 180 million yuan, a year-on-year increase of + 66.2%; Deduct the net profit not attributable to the parent company of 160 million yuan, a year-on-year increase of + 73.5%. The company also released the first quarterly report of 2022. In the first quarter, the operating revenue was 210 million yuan, a year-on-year increase of + 42.2%; The net profit attributable to the parent company was 40.4 million yuan, a year-on-year increase of + 11.9%; Deduct 40.14 million yuan of non parent net profit, a year-on-year increase of + 22.1%.
The revenue of casting superalloy business increased by 45.4%, and the gross profit margin of each business segment increased: the company sold 713 tons of casting superalloy in 2021, realizing a revenue of 290 million yuan, a year-on-year increase of + 45.4%; The gross profit margin was 51.1%, an increase of 6 percentage points year-on-year. The sales volume of deformed superalloys was 1354 tons, with a revenue of 200 million yuan, a year-on-year increase of + 4.9%; The gross profit margin was 28.1%, up 2.5 percentage points year-on-year. The sales volume of special stainless steel was 352 tons, realizing an income of 87.47 million yuan, a year-on-year increase of + 60.4%; The gross profit margin was 42.3%, an increase of 7 percentage points year-on-year. The sales volume of other alloy products was 803 tons, with a revenue of 110 million yuan, a year-on-year increase of + 29.4%; The gross profit margin was 12%, down 1.3 percentage points year-on-year.
The level of profit margin has been greatly improved, and the R & D investment continues to be increased: the overall gross profit margin of the company in 2021 was 37.3%, an increase of 4.8 percentage points year-on-year; The net interest rate was 26%, up 6 percentage points year-on-year. The increase of net profit margin is greater than that of gross profit margin, mainly because the company received 38.64 million yuan of government subsidies for major infrastructure projects in 2021, resulting in an increase of 21.55 million yuan in other income compared with 2020. The sales expense ratio was 1.1%, with a year-on-year decrease of 0.3 percentage points; The management fee rate was 6.4%, with a year-on-year increase of 2.1 percentage points, mainly due to the implementation of the equity incentive plan and the confirmation of share based payment expenses; The R & D expense rate was 6.4%, with a year-on-year increase of 0.2 percentage points.
Steady progress has been made in the development and verification of supporting products: the company has successively completed the trial production and verification of DZ40M, DZ417G directional casting superalloy master alloys, k417g, k40m, K465 and other axial crystal casting superalloy master alloys in 2021, and will gradually enter the batch production stage. The development of deformed superalloy rods and wires for fasteners such as GH2132, GH4169 and GH4738 has been completed, and some products have been supplied in batches. Complete the trial production of several models of precision castings and the development of Seamless High-Strength pipes for aviation. With the gradual realization of mass production of supporting developed products, it is expected to contribute to the sales revenue of the company during the 14th Five Year Plan period.
The raised investment project progressed orderly, and Shenyang Tunan subsidiary was established to expand the business of small and medium-sized parts for aviation: in 2021, due to the impact of the epidemic, the procurement of some imported equipment was delayed. The investment progress of the raised investment project “construction project of ultra pure high-performance superalloy materials with an annual output of 1000 tons” and “construction project of 3300 complex thin-walled superalloy structural parts” was 39.6% and 21.07%. At present, the procurement of some imported and domestic equipment is basically determined, and the project construction will be accelerated in 2022. The company set up a wholly-owned subsidiary Shenyang Tunan in July 2021 to carry out the construction of automatic processing production line of small and medium-sized parts for aviation; It is expected that in the year of reaching production capacity, 500000 pieces (sets) of various aviation small and medium-sized parts can be formed, so as to realize the extension and expansion of products and further enhance the competitiveness of the company.
Investment suggestion: it is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 240 / 32 / 420 million respectively, and the current share price corresponding to PE is 37 / 27 / 21 times, maintaining the “overweight” rating.
Risk tip: the risk of repeated impact of the epidemic on the macro economy; The risk of sharp fluctuations in the price of raw materials; Risk that the progress of new product development and batch production is less than expected.
