\u3000\u3 China Vanke Co.Ltd(000002) 979 China Leadshine Technology Co.Ltd(002979) )
Key investment points
Performance summary: the company achieved an operating revenue of 1.203 billion yuan in 2021, with a year-on-year increase of 27.13%; The net profit attributable to the parent company was 218 million yuan, a year-on-year increase of 24.57%; The net profit deducted from non parent company was 203 million yuan, a year-on-year decrease of 25.58%; EPS is 0.73 yuan. In the first quarter of 2022, the revenue reached 302 million yuan, a year-on-year increase of 1.05%; The net profit attributable to the parent company was 55 million yuan, a year-on-year decrease of 10.64%.
The rise in product prices is expected to stabilize and improve profitability in response to rising costs. In 2021, the company’s gross profit margin was 41.64%, with a year-on-year decrease of 0.98pp. In the first quarter of 2022, the gross profit margin was 40.51%, with a year-on-year decrease of 1.43pp. In April 2022, the company said that in order to cope with the rise of raw materials and other cost factors, the company implemented a price increase of 5% – 8% for the whole series of products on April 25, so as to alleviate the great pressure on the cost side, and the profitability is expected to recover rapidly.
The high growth of downstream demand is expected to drive the full volume of servo products of the company. In 2021, the company’s servo system products achieved a revenue of 317 million yuan, a year-on-year increase of 48.26%, and the proportion in revenue increased to 26.34%. AC servo system: in 2021, the sales increased by 52.30% year on year. The company’s seventh generation L7 series and eighth generation L8 high-end series of AC servo performed well, greatly improved the stability and added value of products, and made breakthroughs in emerging markets such as photovoltaic, lithium battery, Siasun Robot&Automation Co.Ltd(300024) and so on; In the low-voltage servo system, the sales revenue of the low-voltage servo system increased by 47.50% year-on-year, benefiting from the demand recovery of downstream spray printing photo equipment and textile and garment equipment, as well as the market breakthrough of AGV equipment industry. We believe that the technical advantages of the company’s servo system products are widely recognized by customers, and the integrated layout maintains customer stickiness. With the higher accuracy requirements of industrial control products put forward by emerging downstream fields, the company’s “technology + customer” dual advantages are expected to benefit first.
Control technology products are abundant, and the performance has achieved stable growth. In 2021, the company’s control technology products achieved a revenue of 181 million yuan, a year-on-year increase of 22.21%, and the proportion remained unchanged. The company’s control technology products continue to iterate, and new products such as small motion control PLC, medium motion control PLC, plug-in remote IO module and HMI launched in recent two years have achieved rapid growth. In the future, as the company continues to increase R & D investment in control technology products, control products are expected to accelerate the expansion in many fields and promote the overall performance of the company.
Profit forecast and investment suggestions. It is estimated that the company’s revenue from 2022 to 2024 will be 1.546 billion yuan, 1.899 billion yuan and 2.337 billion yuan respectively, and the net profit attributable to the parent company will maintain a compound growth rate of 24.21% in the next three years. The company accelerated the integrated layout of industrial control products. In the long run, the performance is expected to be fully realized, and the “hold” rating is given for the first time.
Risk warning: the risk of intensified market competition; Risk of rising raw materials; The risk of efficiency reduction caused by the rapid increase of personnel.
