\u3000\u3 Guocheng Mining Co.Ltd(000688) 665 Cubic Sensor And Instrument Co.Ltd(688665) )
Event: the company released its annual report for 2021, achieving a revenue of 547 million yuan, a year-on-year increase of 77.80%, a net profit attributable to the parent of 180 million yuan, a year-on-year increase of 112.70%, and deducting a net profit not attributable to the parent of 173 million yuan, a year-on-year increase of 114.23%.
Strengthen supply chain management, improve product quality and efficiency, increase revenue rapidly, and continuously improve profitability
In terms of revenue, the company achieved a revenue of 547 million in 21 years, with a year-on-year increase of 77.80%, mainly due to the increase in the application fields of air quality gas sensors and medical and health gas sensors and the improvement of market share, the entry of on-board sensors into the output period, and the rapid growth of foreign trade business. Among them, CO2 gas sensor and dust sensor, as the core products of civil air quality sensor, the sales revenue maintained a rapid growth year-on-year, 256.78% and 61.81% respectively; In terms of foreign trade business, in the past 21 years, the company strengthened the construction of foreign trade team, further expanded the international market share of air quality sensors, actively expanded foreign trade businesses such as vehicle mounted sensors, ultrasonic gas meters and high temperature sensors, and expanded the company’s international brand popularity. The sales revenue of foreign trade business increased by 119.99% year-on-year.
From the perspective of profitability, the company realized a net profit attributable to the parent company of 180 million yuan in 21 years, with a year-on-year increase of 112.70%. The gross profit margin and net profit margin in 21 years were 50.93% and 33.15% respectively, with a year-on-year increase of 3.77 and 5.80 percentage points respectively, which was mainly due to the company’s increasing the self-production rate of key parts, increasing the sales of high gross profit products, and effectively controlling sales and management expenses through precision marketing, cost reduction and efficiency increase. In terms of supply chain, in the past 21 years, the company has actively optimized the supplier structure, improved the domestic substitution rate of MCU and other parts, and enhanced the autonomy and controllability of the supply chain; The self production rate of parts is further strengthened. The self production rate of laser tube and fan based on dust sensor is 84.74% and 74.75% respectively. The detector based on infrared gas sensor has been self-produced; In terms of various expenses, the company’s sales expense rate, management expense rate and financial expense rate in 21 years were 5.85% / 3.76% / – 1.79% respectively, with a year-on-year decrease of 0.91/0.73/2.09 percentage points respectively. The three expense rates in 21 years totaled 7.82%, with a year-on-year decrease of 3.73 percentage points. In terms of R & D expenses, the company further strengthened the R & D of core technology innovation and new products to maintain the company’s core competitiveness. The R & D expenses in 21 years were 437192 million yuan, Accounting for 7.99% of the company’s operating revenue.
Accelerate the expansion of downstream areas, and continuously increase the market share of original advantageous industries
1) the civil air quality gas sensor business continues to maintain rapid growth: the company’s civil air quality sensor products expand from monitoring CO2, dust, formaldehyde, VOC and radon to oil fume concentration and turbidity, the product types expand from sensors to controllers, and the downstream application fields expand from environmental appliances to cleaning appliances, kitchen appliances, smart buildings, atmospheric environmental protection monitoring, clean rooms and other application fields, and in environmental appliances The market share of clean electrical appliances and other fields is increasing. 2) The product line of on-board sensors has been continuously enriched, entering the production period from the output period: in 21 years, the company’s on-board sensors were applied to the field of automotive comfort system and on-board safety, and the sales revenue increased by 139.94% year-on-year. The gas sensor product line of automobile comfort system extends from vehicle air quality sensor to vehicle air quality improvement device, from monitoring CO2, dust, formaldehyde and VOC to anion, plasma and fragrance generator, and further improves the value contribution and industry threshold of single vehicle through functional integration; The field of vehicle safety includes refrigerant leakage monitoring sensor, new energy vehicle power battery thermal runaway sensor, etc. By the end of the year, the company has continuously expanded the number of fixed-point gas sensors, especially the number of on-board gas sensors, and has entered the field of vehicle safety sensors. By the end of the year, the company has continuously expanded the market of about 10 million new energy sensors. 3) Focusing on the new needs of “double carbon” and “national six year plan”, the gas analysis instrument business has continuously launched new products: the company has launched greenhouse gas emission analyzer and portable greenhouse gas emission analyzer, which can accurately measure the change of CO concentration in CO2, CH4, N2O and other greenhouse gases and flue gas at the same time, and make product reserves for carbon monitoring related businesses in the 14th five year plan.
The projects invested with raised funds have been promoted in an orderly manner, and the three Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) have become important growth points
The transformation ability of achievements in the fields of ultrasonic gas meter, high temperature sensor and medical and health gas sensor was further improved. 1) China’s one belt, one road project, is built in Jiashan. The main purpose of the project is to build an ultrasonic industrial gas meter. The pilot project is in the test and certification stage. The market is worth the import of the ultrasonic gas meter module in the Chinese market. 2) The company has built a high-temperature sensor and high-temperature sensor production platform (ceramic chip packaging), and has built a batch of high-temperature sensor and non-thermal sensor production line to meet the needs of customers, and provided a breakthrough in the market of high-temperature sensor, high-temperature sensor, high-temperature sensor and other fields NOx and particulate matter sensor product solutions. 3) The application fields of medical and health gas sensors were further expanded. After the company upgraded the production line of medical oxygen sensors, the daily output increased by 317.67%. The products are mainly used in ventilator, oxygen generator, high flow oxygen therapy instrument, anesthesia machine, monitor, diffusion lung function instrument, cardiopulmonary analyzer and Plateau diffusion oxygen concentration monitoring, and the sales revenue increased by 128.70% year-on-year.
Relying on the comprehensive technical platform and product portfolio advantages, continue to develop China’s international top customers
The company has a relatively comprehensive gas sensing technology platform. Its products have covered the fields of air quality, environmental monitoring, industrial process, safety monitoring, medical health, intelligent measurement and so on, and have formed a product portfolio of initial scale. The company’s products have been matched with terminal products of well-known brands at home and abroad, such as Philips, Daikin, Panasonic, Midea, Gree, Haier, Hisense, Xiaomi, TCL, Kingclean Electric Co.Ltd(603355) , Jiangsu Yuyue Medical Equipment And Supply Co.Ltd(002223) , Jaguar Land Rover, Valeo, Mahler, German Bosch, FAW Volkswagen, FAW Hongqi, Changan Ford, great wall, Hezhong new energy and so on. With the improvement of the company’s brand influence and internationalization, relying on precision marketing, the company has the ability to continuously develop China’s international top customers.
Profit forecast and investment suggestions: as an excellent supplier of gas sensors and analytical instruments, the company’s customer structure is relatively stable. Its main customers are well-known enterprises at home and abroad, with a prominent industry position; The expansion of market scale and domestic demand for gas sensors and gas analysis instruments provides a good development opportunity for the company. It is estimated that the net profit attributable to the parent company in 22-24 years will be 260 million / 374 million / 492 million yuan, corresponding to 29 / 20 / 15 times of PE, maintaining the “overweight” rating.
Risk warning: the progress of new business is not as expected, the market competition is intensified, and the covid-19 epidemic continues
