\u3000\u3 China Vanke Co.Ltd(000002) 851 Shenzhen Megmeet Electrical Co.Ltd(002851) )
Matters:
The company released its annual report for 2021. During the reporting period, the operating revenue was 4.156 billion yuan, a year-on-year increase of 23.08%; The net profit attributable to the shareholders of the listed company was 389 million yuan, a year-on-year decrease of 3.50%; The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was 262 million yuan, a year-on-year decrease of 14.12%. The company plans to pay a cash dividend of 0.16 yuan per share (including tax) and does not convert the capital reserve into share capital. The company’s performance is in line with expectations.
The company released the first quarterly report of 22 years. During the reporting period, the operating revenue was 1.193 billion yuan, a year-on-year increase of 34.13%; The net profit attributable to the shareholders of the listed company was 73 million yuan, a year-on-year decrease of 9.25%; The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was 62 million yuan, a year-on-year decrease of 4.03%.
Ping An View:
Many factors led to pressure on the cost side, and the company’s order growth was upward. The company achieved an operating revenue of 4.156 billion yuan in 21 years, with a year-on-year increase of 23.08%; The net profit attributable to the shareholders of the listed company was 389 million yuan, a year-on-year decrease of 3.50%; The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was 262 million yuan, a year-on-year decrease of 14.12%. 1q22 achieved an operating revenue of 1.193 billion yuan, a year-on-year increase of 34.13%; The net profit attributable to the shareholders of the listed company was 73 million yuan, a year-on-year decrease of 9.25%; The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was 62 million yuan, a year-on-year decrease of 4.03%. The growth rate of the company’s net profit is lower than that of its revenue. The main reasons include the high price of main raw materials in the company’s product line, the shortage of medium and high-end chips, the company’s increasing R & D investment and developing emerging businesses. From the perspective of orders, the orders of 1q22 and 1q22 companies increased by 48% / 59% year-on-year respectively, which were significantly higher than the growth rate of revenue. Looking forward to the whole year of 22 years, we expect that the company is expected to achieve better performance growth with the weakening impact of the Chinese epidemic on delivery and the gradual easing of the shortage of chip supply.
All businesses continue the good development trend and realize the business ladder layout around the core technology. In the 21st year, the company’s revenue of intelligent home appliance electronic control / industrial power supply / industrial automation / new energy and rail transit business increased or decreased by + 23.69% / + 26.09% / + 45.38% / – 14.32% respectively year-on-year. Among them, the orders of new energy vehicle business increased rapidly, but the revenue decreased slightly due to delivery problems; Excluding the new energy vehicle business, the revenue of other businesses increased by 28.14% year-on-year. Focusing on the core technology platform, the company continues to expand the high boom segment market. At present, the company’s new businesses such as intelligent welding machine, precision connection and hydraulic servo pump are expanding smoothly; Preliminary progress has been made in Beijing Emerging Eastern Aviation Equipment Co.Ltd(002933) businesses such as intelligent oil production equipment and industrial microwave equipment; At the same time, the company has also invested in the fields of linear motor, magnetic encoder and thermal management of new energy vehicles. In the past 21 years, the R & D expense rate of the company has reached 11.09%. Focusing on the core technology of power electronics, the company has continued to develop new businesses. At present, a ladder layout of “incubating, growing, developing and mature” has been gradually formed, which has laid a solid foundation for the medium and long-term development of the company.
Release the convertible bond plan to boost the capacity construction and help the business expansion: the company issued the convertible bond fund-raising plan on February 22. It plans to raise no more than 1.22 billion yuan for the following projects: Hangzhou high-end equipment industry center / Zhuzhou base expansion (phase II) / intelligent warehousing / replenishment of working capital, and the funds to be invested are 3.0/3.1/2.5/360 billion yuan respectively. Among them, the Hangzhou high-end equipment industry center project will build the company’s Hangzhou industrial center, accelerate the development of oil production system business and promote the continuous expansion of intelligent bathroom business; Zhuzhou base (phase II) project will expand the production capacity of the company’s frequency conversion controller and industrial power supply, and improve the company’s ability to provide system integration products in the field of industrial power supply. We believe that the successful implementation of the company’s convertible bond project will promote the sustained growth of many of the company’s current main businesses in the medium and long term.
Focus on the development momentum of the company’s core business and realize the development trend of multi-core technology. Although the company’s cost side pressure increases and order delivery lags behind due to external factors in the short term, the company’s current order growth rate is upward and maintains a good development trend. In the medium and long term, the growth path of the company is clear. With the improvement and continuous extension of the platform construction, the share growth of the original business and the large volume of new business are expected to promote the rapid growth of the company’s performance. Considering the impact of the high price of raw materials, the shortage of medium and high-end chips and other factors on the delivery of the company, we lowered the forecast of the net profit attributable to the parent company for 22 / 23 years to 505 / 690 million yuan respectively (the previous value was 645 / 870 million yuan respectively), and increased the forecast of the net profit attributable to the parent company for 24 years to 1.005 billion yuan, corresponding to the closing price of PE on April 21 to 19.4/14.2/9.7 times respectively. Maintain a “recommended” rating.
Risk tips: 1) if there is a continuous shortage of upstream core raw materials such as IGBT and chip, it will have an adverse impact on the company’s performance; 2) If the macro-economy drops sharply, it will have an adverse impact on the company’s performance; 3) If the competition in power supply, industrial automation and other industries intensifies, it will have an adverse impact on the company’s performance.
