\u3000\u3 China Vanke Co.Ltd(000002) 851 Shenzhen Megmeet Electrical Co.Ltd(002851) )
Performance summary: the company achieved an operating revenue of 4.156 billion yuan in 2021, with a year-on-year increase of 23.08%; The net profit attributable to the parent company was 389 million yuan, a year-on-year decrease of 3.5%; The net profit deducted from non parent company was 262 million yuan, a year-on-year decrease of 14.12%; EPS is 0.78 yuan. In the first quarter of 2022, the revenue was 1.193 billion yuan, a year-on-year increase of 34.13%; The net profit attributable to the parent company was 73 million yuan, a year-on-year decrease of 9.25%.
The business is advancing steadily, and industrial automation products are developing rapidly. In 2021, the company’s revenue of industrial automation products was 781 million yuan, with a year-on-year increase of 45.38%, accounting for 18.79% of the revenue; The revenue of industrial power supply was 882 million yuan, a year-on-year increase of 26.09%; The revenue of electronic control of smart appliances was 2.171 billion yuan, a year-on-year increase of 23.69%. The company adopts differentiation and the positioning of emerging industries, which is different from comparable companies in the industry, and the product automation rate is further improved. In the future, with the continuous expansion of new business, the scale effect is expected to boost profitability.
Orders are growing rapidly, and long-term performance is expected to be fully realized. In 2021, the company continued the good development trend, and the total order volume increased by 48%. However, due to the impact of external supply situation, the increase of order delivery was less than that of order growth. By business, the medical power supply business declined slightly due to the long order delivery cycle. However, in the medium and long term, the epidemic will lead to the improvement of the configuration of medical equipment in the global health system, and the corresponding long-term demand space for medical power supply is still expected. In addition, the company’s new energy vehicles and rail transit business achieved rapid growth in orders in 2021, and tried new product breakthroughs in vehicle compressors, thermal management systems and other directions, but also led to a decline in revenue due to tight delivery. We believe that the company’s continuous expansion of new customers provides a strong support for business growth. With the smooth delivery of future orders, the company’s medium and long-term performance is still good.
Issue convertible bonds to build the regional layout of the Yangtze River Delta and further consolidate its leading edge. The company announced the feasibility announcement of issuing convertible bonds on February 22, 2022, and plans to invest 300 million yuan / 310 million yuan / 250 million yuan / 360 million yuan respectively in Hangzhou high-end equipment project, Zhuzhou base expansion project (phase II), intelligent warehousing and supplementary working capital project. It aims to improve the company’s regional layout in the Yangtze River Delta, expand intelligent talent system site equipment, and accelerate the expansion of oil production business. We believe that with the promotion of convertible bond investment projects, the company’s regional layout will be more perfect, and greater synergy value is expected to consolidate its leading position in the industry.
Profit forecast and investment suggestions. It is estimated that the company’s revenue from 2022 to 2024 will be 5.386 billion yuan, 6.888 billion yuan and 8.499 billion yuan respectively, and the net profit attributable to the parent company will maintain a compound growth rate of 31.95% in the next three years. The company has strengthened its regional layout. In the long run, its performance is expected to be fully realized, and it is given a “hold” rating for the first time.
Risk warning: the risk of market demand decline caused by macroeconomic fluctuations; The risk of intensified market competition caused by the increase of foreign investment; The risk that the development of new products and technologies fails to meet the expectations.
