\u3000\u3 Shengda Resources Co.Ltd(000603) 100 Chongqing Chuanyi Automation Co.Ltd(603100) )
Event: Recently, the company released its 2021 annual report. In 2021, the company achieved an operating revenue of 5.487 billion yuan, a year-on-year increase of 28.99%; The net profit attributable to the owners of the parent company was 539 million yuan, a year-on-year increase of 41.32%.
Comments:
Abundant orders on hand and improved profitability. On the revenue side, the company's revenue in 2021 was 5.487 billion yuan, an increase of 28.99% at the same time. Quarterly, the revenue growth of 2021q1-q4 was 60.02%, 28.84%, 17.63% and 24.06% respectively. The new orders increased by 30% at the same time in 2021. The downstream demand was good, and the revenue growth picked up in the fourth quarter. At the beginning of the year, there were abundant orders on hand. By the end of 2021, the inventory had increased by 34.48% and the contract liabilities had increased by 80.94%; On the profit side, the company realized a net profit attributable to the parent company of 539 million yuan in 2021, an increase of 41.32% at the same time. The growth rate of net profit attributable to the parent company from Q1 to Q4 in 2021 was 507.44%, 34.67%, - 7.33% and - 33.70% respectively. The decline in Q4 profit was mainly due to the large changes in credit impairment losses, which offset the impairment of photovoltaic projects individually accrued in the same period of last year. In 2021, the gross profit margin was 34.94%, with an increase of 0.32 PCT and the net profit margin was 9.85%, with an increase of 0.96 PCT, mainly due to the improvement of product R & D and process technology level, and the enhancement of intelligent manufacturing and fine management ability.
The business of industrial automation instruments and devices maintained rapid growth. In 2021, the company's industrial automation instrument and device revenue was 4.685 billion, an increase of 26.12% at the same time, accounting for 85.4% of the revenue, and the gross profit margin was 36.45%, an increase of 1.28 PCT at the same time. The main reasons were the continuous launch of new products driven by R & D, the improvement of the intelligent level of the production line and the improvement of process efficiency. In 2021, the top three areas of the company's revenue were petrochemical, metallurgy and electric power. The commencement of large-scale refining and chemical integration projects in the petrochemical field maintained rapid growth. The company continued to deepen and bind key customers such as PetroChina, Sinopec and Wanhua Chemical Group Co.Ltd(600309) and continued to increase market share. The transformation of ultra-low emission in the metallurgical field was accelerated under the background of double carbon. The company landed multiple orders such as Panzhihua Iron and steel, and the power field accelerated biomass power generation Nuclear power and other clean energy, the company landed in many key projects such as CNNC and CGN.
The company benefits from the trend of intellectualization and localization of process industry in the medium and long term. The numerical control rate of key processes of Industrial Enterprises above Designated Size in key fields in China is about 55%, and there is still much room for improvement. The company continues to expand its layout of new businesses and new markets. In 2021, the company's products such as intelligent transmitter, intelligent regulating valve and intelligent flow meter made new breakthroughs in the markets of new materials, wine making, biopharmaceutical and lithium battery, continued to strengthen the promotion of pas300 control system, and actively created demonstration cases of integrated solutions in the fields of fine chemicals, cement manufacturing and waste incineration. We believe that the company will fully benefit from the continuous deepening of intelligent and digital upgrading of process industry. In addition, at present, many instrument single products are highly dependent on imports. For example, the proportion of foreign investment in the company's largest single product regulating valve and the second largest single product pressure transmitter is high. With the improvement of the company's technical strength, the comprehensive advantages in product performance and pricing will be more prominent, and there is more room for domestic products to replace.
Profit forecast and investment rating: we expect the net profit attributable to the parent company from 2022 to 2024 to be 523 million yuan, 650 million yuan and 781 million yuan respectively, and the corresponding EPS are 1.32 yuan / share, 1.65 yuan / share and 1.98 yuan / share respectively, corresponding to 10 times, 8 times and 7 times of the current share price PE respectively. Maintain the company's "buy" rating.
Risk factors: the risk of changes in economic environment and trade policies, the risk of sudden and disastrous events such as repeated epidemics, the risk of intensified market competition, the risk of price fluctuations of raw materials, etc.
