\u3000\u30 Xuchang Ketop Testing Research Institute Co.Ltd(003008) 55 Jiangsu Toland Alloy Co.Ltd(300855) )
Event: the company released the 2021 annual report and the first quarterly report of 2022: the revenue in 2021 was 698 million yuan, a year-on-year increase of + 27.73%; The net profit attributable to the parent company was 181 million yuan, a year-on-year increase of + 66.24%; Deduct non net profit of 164 million yuan, a year-on-year increase of + 73.51%; In 2022q1, the revenue was 212 million yuan, a year-on-year increase of + 42.15%, the net profit attributable to the parent company was 40 million yuan, a year-on-year increase of + 11.86%, and the net profit not attributable to the parent company was 40 million yuan, a year-on-year increase of + 22.08%.
Key investment points
In 2021, the revenue level and profitability went hand in hand, and the revenue in 2022q1 maintained a rapid growth: the company's performance grew steadily in 2021, and the revenue of casting superalloys was 291 million yuan, a year-on-year increase of + 45.41%,; The income of deformed superalloy was 197 million yuan, a year-on-year increase of + 4.90%; The income of special stainless steel was 87 million yuan, a year-on-year increase of + 60.42%. The overall gross profit margin was 37.31%, with a year-on-year increase of + 4.75pct, mainly due to the decrease of 3.37pct and 1.52pct in the proportion of direct material cost and manufacturing cost; The net interest rate attributable to the parent company was 25.98%, a year-on-year increase of + 6.01pct, mainly due to the significant increase of 112.53% in government subsidies. In 2022q1, the company achieved a revenue of 212 million yuan, a year-on-year increase of + 42.15%, a net profit attributable to the parent company of 40 million yuan, a year-on-year increase of + 11.86%, and an overall gross profit margin of 34.02%, a year-on-year increase of -3.11pct, mainly due to the rise in the cost of raw materials.
The core supplier of high-temperature parent alloy and precision casting case for military aircraft launch continues to benefit from the high prosperity of the aircraft launch track: the company focuses on the R & D, production and sales of high-performance alloy materials and products such as high-temperature alloy and special stainless steel, of which the high-temperature alloy parent alloy and precision casting products are used in the field of aircraft launch, and the deformed high-temperature alloy is used in the field of aviation, gas turbine and other high-end civil equipment, Special stainless steel is used in various conduits of aeroengine, oil pipelines and hydraulic pipelines of aircraft fuselage. The company develops the market with differentiated competition and technical services, and arranges the high-temperature alloy field in the whole industrial chain. With the improvement of prosperity and demand growth in the aviation development field, the company will continue to benefit from its product advantages.
The production of superalloys continued to expand, and the subsidiary Shenyang Tunan was established to expand its business scope: by the end of 2021, the investment progress of the company's fund-raising projects "construction project of ultra pure high-performance high alloy materials with an annual output of 1000 tons" and "construction project of complex thin-walled superalloy structures with an annual output of 3300 pieces" were 39.59% and 21.07% respectively. The demand for superalloys in aerospace and other fields is strong, and the company will usher in greater growth with the expansion of production capacity. In July 2021, the company set up a subsidiary, Shenyang Tunan, to invest in the construction of the automatic processing production line project of small and medium-sized aviation parts, which will form a complete R & D and manufacturing business capacity of aviation parts, further expand the business scope and enhance the competitiveness.
Profit forecast and investment rating: Based on the high prosperity of the military industry during the 14th Five Year Plan period and the company's leading position in advanced metal materials in China, it is estimated that the net profit attributable to the parent company of the company from 2022 to 2024 will be 220 million yuan, 313 million yuan and 425 million yuan respectively, and the EPS will be 1.10 yuan, 1.57 yuan and 2.13 yuan respectively, corresponding to 38 / 27 / 20 times of PE respectively. It will be covered for the first time and given a "buy" rating.
Risk tips: 1) risk of military order fluctuation; 2) New product R & D and market development are not as expected; 3) Systemic risk.
