\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 15 Jiangsu Canlon Building Materials Co.Ltd(300715) )
Key investment points
Event: the company released the 2021 annual report and the first quarterly report of 2022. In 2021, the revenue reached 2.586 billion yuan, a year-on-year increase of + 28.80%; The net profit attributable to the parent company was 72 million yuan, a year-on-year increase of – 74.18%. In 2022q1, the revenue was 326million yuan, a year-on-year -26.85%; The net profit attributable to the parent company was 8.5863 million yuan, a year-on-year increase of – 84.14%.
Affected by the industry boom and the company’s strict risk control, the income of 21q4 and 22q1 is under pressure. The revenue growth rate of 2021q1-q4 was 81.78% / 47.42% / 33.02% / – 6.42% respectively. The company achieved high growth in operating revenue in the first three quarters, but since Q4, the company has actively controlled the business of risk customers. In addition, the industry boom has declined, and the revenue growth rate has declined year-on-year. 22q1 due to the weak real estate construction and the impact of the epidemic, the revenue decreased by 26.85% year-on-year. In terms of business, the revenue of waterproof coiled materials in 2021 was 1.788 billion yuan, a year-on-year increase of + 12.97%; The operating revenue of waterproof coating was 576 million yuan, a year-on-year increase of 67.80%; The construction revenue was RMB 27.0 billion, a year-on-year increase of 1.01%.
21q4 gross profit margin improved month on month, and the provision for large impairment affected profits. On a quarterly basis, the gross profit of 21q3 company was under pressure due to the sharp rise in the price of raw materials in the petrochemical chain, and the cost of Q4 was alleviated compared with Q3. In Q1 2022, due to the rapid rise of raw material prices after the Spring Festival, the gross profit margin decreased significantly year-on-year. In terms of products, the gross profit margin of waterproof coiled materials in 2021 was 34.5%, a year-on-year decrease of 10.2 percentage points; Waterproof coating was 17.4%, down 21.3 percentage points year-on-year, mainly in the waterproof coating, the low-end products grew faster and the low-end products were significantly affected by the price of lotion. The construction of the project was 27.5%, down 4.1 percentage points year-on-year. In 2021, the company’s net sales interest rate was 2.76%, with a year-on-year decrease of 11.12pct. The company accrued credit impairment loss of 202 million yuan in Q4, mainly due to the company’s individual provision for bad debt reserves for the debts of Evergrande group, Blu ray group, Rongsheng real estate and other companies.
In the 21st year, the cash flow from operating activities was under pressure, the funds in hand were abundant, and the asset liability ratio decreased. The company’s net cash flow from operating activities in 2021 was -384 million yuan, a year-on-year change of -272 million yuan, of which the net cash flow from operating activities in the fourth quarter was 76.3 million yuan. 1) Cash to cash ratio: in 2021, the cash to cash ratio was 61.65%, with a year-on-year change of -369pct. At the end of 21, the balance of accounts and notes receivable of the company was 2.019 billion yuan, with a year-on-year increase of 30.10%; 2) Cash ratio: in 2021, the cash ratio was 86.18%, with a year-on-year change of -5.51pct. After the fixed increase fund-raising of the company is in place, the funds in hand are relatively abundant. At the end of 21, the asset liability ratio of the company was 49.94%, with a year-on-year change of -11.64pct.
Profit forecast and investment rating: the company competes differently in polymer waterproof coiled materials, continuously increases R & D investment and improves technical strength. With the improvement of waterproof standards, polymer waterproof coiled materials continue to penetrate, and the proportion of product demand has great room for improvement. The company continues to increase production capacity and channel expansion, continuously expand market share, increase 1.5 billion to supplement flow and enhance its strength. We estimate that the net profit attributable to the parent company from 2022 to 2024 will be RMB 247 / 333 / 439 million respectively, and the corresponding PE will be 21x / 16x / 12x respectively. Considering the future growth and performance repair flexibility of the company, we will give the rating of “overweight” for the first time.
Risk tip: the risk of fluctuation in the downstream real estate industry; Risk of sharp fluctuations in raw material prices; The risk of intensified industry competition; Risk of accounts receivable; Equity pledge risk
