\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 18 Zhejiang Changsheng Sliding Bearings Co.Ltd(300718) )
Event: on April 21, the company released the annual report of 2021 and the first quarterly report of 2022. In 2021, the company achieved a revenue of 985 million yuan, a year-on-year increase of 50.32%; The net profit attributable to the parent company was 155 million yuan, a year-on-year increase of 6.69%; The net profit attributable to the parent company after deduction was 116 million yuan, a year-on-year increase of 2.55%; The company plans to distribute a cash bonus of 3.50 yuan for every 10 shares. In the first quarter of 2022, the company achieved a revenue of 260 million yuan, a year-on-year increase of 17.38%; The net profit attributable to the parent company was 302524 million yuan, a year-on-year decrease of 26.55%.
The company's revenue maintained rapid growth, and the rise in the price of raw materials suppressed the profitability.
(1) in 2021, the company's revenue increased by 50.32% year-on-year, the net profit attributable to the parent increased by 6.69% year-on-year, and the net profit attributable to the parent increased by 2.55% year-on-year after deduction. In 2021, the company's income from metal plastic polymer self-lubricating rolled bearing / bimetallic boundary lubricating rolled bearing / Metal Based Self-lubricating Bearing / non-metallic self-lubricating bearing / copper based boundary lubricating rolled bearing was RMB 3.00/2.49/1.95/0.69/0.39 billion respectively, with a year-on-year increase of 37.81% / 40.06% / 54.68% / 24.91% / 65.54% respectively. In the first quarter of 2022, the company's revenue increased by 17.38% year-on-year, and the net profit attributable to the parent decreased by 26.55% year-on-year; In the first quarter, the company's revenue maintained rapid growth, and the level of net profit declined.
(2) in 2021, the company's gross profit margin was 27.66%, a year-on-year decrease of 8.16 percentage points; The net interest rate was 15.81%, a year-on-year decrease of 6.50 percentage points; The weighted average return on net assets was 11.80%, with a year-on-year increase of 0.02 percentage points; The sales expense rate / management expense rate / R & D expense rate / financial expense rate were 1.92% / 5.96% / 4.18% / 1.19% respectively, with a year-on-year increase of -0.45 / - 0.58 / - 0.92/1.15 percentage points respectively. In the first quarter of 2022, the gross profit margin of the company was 24.74%, a year-on-year decrease of 6.13 percentage points, and the net profit margin was 11.62%, a year-on-year decrease of 7.02 percentage points. Affected by the continuous high price of raw materials such as steel and copper powder, the gross profit margin and net profit margin of the company have declined significantly.
(3) in 2021, the company's accounts receivable turnover days were 78.94 days, a year-on-year decrease of 9.10 days; The inventory turnover days were 70.28 days, a year-on-year decrease of 6.82 days. In 2021, the company's net cash flow from operating activities was 81.232 million yuan, a year-on-year decrease of 21.44%. The turnover of the company has been accelerating, the operation capacity has been gradually improved, and the operation quality is still stable.
The advantages of customer resources are obvious, and the market share in subdivided fields is leading. After many years of development in China's medium and high-end engineering and machinery markets, many companies have accumulated high-quality products in China's new energy and machinery markets. The company has established long-term and stable cooperative relations with advantageous enterprises in the industry, such as Sany group, caterpillar, Komatsu, Jiangsu Hengli Hydraulic Co.Ltd(601100) , Tata Motors, Bosch, Knorr, Faurecia, FAW east machinery, Shanghai Zhenhua Heavy Industries Co.Ltd(600320) , Haitian plastic machinery, Himile Mechanical Science And Technology (Shandong) Co.Ltd(002595) . The company was awarded the honors of "the first licensed supplier of Sany group's' excellent peer 'project", "caterpillar strategic partner", "Mitsubishi MMX best qualified supplier", "Knorr excellent supplier", "FAW East mechanic excellent supplier" and "Carraro partner", which fully reflects the product competitiveness and brand reputation of the company. According to the announcement of the company, the market share of the company's products in Sany excavator chassis bushing parts in China is about 90%; In the world, the proportion of excavator chassis bushing parts can reach more than 30%; The market share of reducer and push rod components in the photovoltaic industry has reached more than 30%; The market share of photothermal equipment support has reached more than 40%; In the wind power industry, the company's products have been applied in pitch and reducer; The market share of the company's self-lubricating antifriction sector products in injection molding machines is about 40%, of which the market share of the products of a new generation of large injection molding machines suitable for high-end self-lubricating bearing products is up to 60%.
Product technology advantages are prominent, and new categories continue to expand, injecting new impetus into future development. The company has been deeply engaged in the self-lubricating bearing industry for more than 20 years, leading the industry in the R & D, innovation, promotion and application of self-lubricating bearing technology and materials, and has mastered the core technologies in the fields of antifriction materials, polymers and so on. The company's R & D investment has continued to increase in recent years. In 2021, the company's R & D investment reached 412071 million yuan, a year-on-year increase of 23.37%, accounting for 4.2% of revenue. The company's products have outstanding technical advantages, and has established a more comprehensive product system in the industry. The products involve tens of thousands of specifications, which basically meets the one-stop procurement needs of customers; The stability, reliability, service life and other comprehensive properties of batch products have been widely recognized by the market. Based on the research of tribological materials and high-performance polymers, the company continues to expand new products and applications. Anhui Changsheng precision was established in 2020, mainly producing the shaft and end cap of excavator chassis system and the friction parts forming friction pairs with the company's original self-lubricating bearing products. In 2021, the income of Changsheng precision reached 745509 million yuan, which is expected to bring 300 million yuan of incremental revenue in the future. In addition, the company further brings performance flexibility to the company through the layout of new categories such as vehicle antifriction parts.
Maintain the "buy" rating. The company is a leading enterprise in China's self-lubricating bearing industry. Its products are exported overseas and its customer resource advantages are prominent. It is a typical representative of "import substitution + going abroad" of China's core parts of mechanical equipment; However, the profitability of the company has been suppressed due to the continuous high price of raw materials and the multi-point spread of the national epidemic. We lowered the company's profit forecast. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 176, 207 and 239 million yuan respectively (the value before 2022 and 2023 will be 262 and 352 million yuan respectively), and the corresponding PE will be 21.6, 18.3 and 15.9 times respectively, maintaining the "buy" rating.
Risk tips: macroeconomic cyclical fluctuations, slowdown in downstream demand, sharp rise in raw material prices, sharp fluctuations in exchange rates, deterioration of overseas trade environment, lower performance than expected risks, etc.
