\u3000\u30 Beijing Jingyeda Technology Co.Ltd(003005) 93 Beijing Relpow Technology Co.Ltd(300593) )
Event: the company released its 2021 annual report and the first quarterly report of 2022. In 2021, it realized revenue (1.478 billion yuan, + 75.37%) and net profit attributable to the parent company (274 million yuan, + 122.02%); 22 Q1 achieved revenue (471 million yuan, + 66.48%) and net profit attributable to the parent company (87 million yuan, + 69.69%), and the performance in the first quarter exceeded the market expectation.
Special fields continued to accelerate, and capacity expansion laid the foundation for sustainable growth
In 2021, the company responded to customer demand, actively completed capacity construction and guaranteed product delivery, and achieved rapid growth in overall revenue and profit, including:
1) in special fields, give full play to the advantages of multiple categories of the company's products, expand the market share of existing customers and the product coverage of new development projects, ensure the delivery of key model projects, and realize revenue (880 million yuan, + 62.31%);
2) in the field of communication and network, the revenue was realized (543 million yuan, + 133.12%), which mainly benefited from the continuous promotion of 5g communication base station construction outside China, especially the rapid recovery of export business, which increased its proportion in the annual revenue from 8.25% to 25.74%.
In addition, we believe that we should focus on the situation of the parent company. In 2021, the parent company achieved revenue (684 million yuan, + 66.02%) and net profit (222 million yuan, + 111.43%). Considering that the parent company mainly undertakes business in special fields, it is expected that the high growth rate will be caused by the significant increase in product delivery in special fields, and the reference parent company's net interest rate will increase by 6.96 PCT to 32.45% compared with that in 2020, With the continuous increase in the delivery of special products, the company's subsequent profitability still has a certain room for improvement.
Quarterly data rose steadily, and capacity expansion laid the foundation for sustainable growth. The company's net profit attributable to the parent company from Q1 to Q1 was 51 million yuan, 68 million yuan, 75 million yuan, 79 million yuan and 87 million yuan respectively, showing a steady upward trend on the whole. With reference to the gross profit margin of each quarter, it was 49.83%, 51.20%, 48.23%, 42.12% and 45.03% respectively. The expected fluctuation was mainly due to the change of product delivery structure in each quarter. At the same time, according to the annual report, Beijing leineng's production capacity continues to improve by means of site adjustment, new production lines, personnel expansion, process upgrading and automation equipment expansion. At the same time, Yongli science and Technology Park plans to put 22h1 into use. In addition, according to the first quarterly report, the company's customer order demand in special fields is still increasing, and the export business orders in the communication field recover rapidly after the improvement of the foreign epidemic. Based on this, we expect that, Under the background of continuous upward downstream demand, the company is actively strengthening its production capacity to lay a solid foundation for subsequent sustained and rapid growth.
The product structure led to a slight decline in gross profit margin and a gradual increase in net profit margin. The company's gross profit margin fell by 0.99pct to 47.28% in 2021, which is expected to be mainly due to the increase of 9.11pct to 36.78% of revenue from communication and network business with relatively low gross profit margin in 2021; At the same time, during 2021, the expense rate decreased by 5.18 PCT to 24.34%, driving the net profit margin to increase by 2.64 PCT to 19.84%. Considering the high gross profit margin of power supply in special fields, it is expected that after its proportion in revenue continues to increase, the company's overall profitability may still have room for improvement, and the performance is still flexible.
The relevant indicators of the balance sheet continued the high boom, and all cash flows fell. In 021, the company's prepayment increased by 81.40% compared with the beginning of the period, and the inventory increased by 77.64%. The raw materials, products in process and goods issued in the inventory account increased by 123%, 71% and 134% respectively. At the same time, the contract liabilities increased by 90%, which reflects that the company's downstream demand is full and is actively preparing for production, while the long acceptance cycle leads to a large increase in products in process and goods issued, It is expected that the subsequent delivery and revenue recognition will continue to be cashed to the revenue side; At the same time, the company's construction in progress is expected to increase by 115.54% due to the project expenditure of Yongli science and Technology Park, which further verifies that the company's production capacity is still in the stage of active expansion. The company's demand for unsold goods is mainly due to the increase of cash flow in 2021, which is mainly due to the increase of the company's demand for unsold orders or notes, and the company's demand for unsold goods is expected to increase in 2021.
Deep cultivation of military power supply for many years, with rich product categories and large downstream demand
1) from the supply side, the company has been involved in the military power supply industry since 2000 and has established a market leading position with complete supporting qualifications. At the same time, it has formed a perfect product technology reserve in the aerospace field by adhering to a high proportion of R & D investment throughout the year, and has further realized the comprehensive coverage of military application fields by purchasing Yongli technology into the field of marine ships. In addition, The company is still expanding its military production capacity to actively respond to the rapid growth of demand in aerospace and other fields during the 14th Five Year Plan period;
2) from the demand side, the gap between Chinese power supply enterprises and foreign brands in technology has been narrowing in recent years. At the same time, due to the military information construction or the top priority during the 14th Five Year Plan period, the continuous batch production of models in key fields such as aerospace and domestic substitution are imperative, the market increment of military power supply industry will be sufficient in the future. We believe that considering the company's complete technology and product reserves, with the gradual batch production and accelerated assembly of aerospace multi-type key weapons and equipment, the growth certainty and sustainability of military products business in the future are strong. At the same time, the gross profit margin of military products power supply business is high, and it is expected that the superposition of scale effect after increasing the proportion of revenue will also help the company continuously improve its profitability, and the future growth can be expected.
Investment suggestion: the company has been deeply engaged in the field of modular power supply for more than 20 years, has established a clear market leading position, and has fully reserved relevant products and technologies through a high proportion of R & D investment throughout the year. In the field of military products, the company invested in R & D in the early stage, and the batch production of products. With the accelerated assembly of weapons and equipment in downstream aerospace and other fields, it is expected that the company's future performance growth will be more deterministic and sustainable, and it is also expected to further improve its profitability through scale effect; In the field of communication, with the continuous promotion of China's 5g construction and the gradual improvement of export business, it is expected to remain a stable source of profit in the future. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 430 million, RMB 620 million and RMB 840 million respectively, with corresponding valuations of 24, 17 and 12 times respectively, maintaining the "Buy-A" rating.
Risk warning: military orders are less than expected; Civil product orders are less than expected; Capacity expansion was less than expected.
