\u3000\u30003 Anhui Fuhuang Steel Structure Co.Ltd(002743) 00274)
Event:
The company issued the annual report of 2021 and the first quarter report of 2022.
In 2021, the company’s operating revenue was 24.137 billion yuan, a year-on-year increase of 25.15%; The net profit attributable to the parent company was 1.583 billion yuan, a year-on-year decrease of 19.01%.
In the first quarter of 2022, the company’s operating revenue was 4.568 billion yuan, a year-on-year increase of 36.48%; The net profit attributable to the parent company was 411 million yuan, a year-on-year increase of 6.26%
Key investment points:
Multi business development, revenue scale in line with expectations, in 2021, the company’s photovoltaic inverter revenue was 9.051 billion yuan, an increase of 20.4% year-on-year; The investment and development income of the power station was 9.679 billion yuan, a year-on-year increase of 17.65%; The revenue of energy storage system was 3.138 billion yuan, a year-on-year increase of 168.51%, and the revenue of wind power converter was 1.177 billion yuan, a year-on-year decrease of 16.79%; The power generation revenue of photovoltaic power stations was 486 million yuan, an increase of 29.80% year-on-year. The company’s inverter shipment volume is 47gw, with a year-on-year increase, including 18gw in China and 29gw overseas, with a global market share of more than 30%. In addition, the company delivered more than 15gw of wind power converters and 3gwh of energy storage system. Except that the revenue of wind power business has decreased, other businesses have maintained growth. Among them, the business of energy storage system has doubled, accounting for 13% of the operating revenue, which is expected to become a new performance growth point of the company.
We strengthened technology R & D and sales promotion, and the company’s short-term profitability was under pressure. By the end of 2021, the number of employees reached 6726, an increase of 50% year-on-year. Among them, the number of production, sales and technical personnel of the company increased by 52%, 45% and 50% respectively. Meanwhile, the company’s sales expense in 2021 was 1.583 billion yuan, a year-on-year increase of 63%; The R & D cost was 1.161 billion yuan, a year-on-year increase of 44%. We believe that the company will increase its business support in household photovoltaic and household energy storage, such as increasing sales channels and the scale of sales personnel, and strengthening product research and development. In the long run, it is expected to support the further expansion of the company’s business, resulting in a certain increase in cost rate in the short term and pressure on profitability. In the long run, it is expected to help the company’s business expansion.
The energy storage business is expected to become a new growth point of the company. In 2021, the global shipment volume of the company’s energy storage system business reached 3gwh, the revenue growth rate reached 168.51%, and the revenue accounted for 13%. The company has launched 5 ~ 10kW / 9.6 ~ 102.4kwh household energy storage system and 50KW ~ 1MW / 2 ~ 5h distributed energy storage system, which have been applied in batch in the global market. We believe that under the current trend of global energy shortage, the energy consumption cost in Europe and the United States has increased, which will stimulate the demand for more energy storage systems, especially household energy storage systems.
Profit forecast and investment rating we predict that the net profit attributable to the parent company from 2022 to 2024 is expected to reach 3.210 billion yuan, 4.136 billion yuan and 5.208 billion yuan. We believe that the company currently has a high market share in the field of inverter and rapidly expands the field of household use. At the same time, the company vigorously expands its energy storage business, which is expected to become a new performance growth point of the company. The company will increase sales and R & D investment, expand marketing channels and product categories, and is expected to continue to achieve performance growth. For the first time, give a “buy” rating.
Risk tip: the continuous rise in the price of photovoltaic modules leads to the lower than expected installed capacity of downstream photovoltaic; The business promotion of the company’s new products is less than expected; The continuous shortage of chip raw materials led to the company’s shipment falling short of expectations; The excessive rise in the price of energy storage cells leads to the lower than expected income and profitability of energy storage business; Overseas business expansion was less than expected.
