\u3000\u3 Shengda Resources Co.Ltd(000603) 303 Hengdian Group Tospo Lighting Co.Ltd(603303) )
Hengdian Group Tospo Lighting Co.Ltd(603303) announced the first quarterly report of 2022, Q1 company achieved an operating revenue of 1.256 billion yuan, yoy + 4.56%; The net profit attributable to the parent company was 60 million yuan, yoy-36.62%; The net profit deducted from non parent company is 64 million yuan, yoy + 0.28%.
Key points supporting rating
Q1 lighting products continued the strong export level in 2021, with revenue yoy + 17.5% under the same caliber. According to the company’s financial report, the company achieved a revenue of 1.256 billion yuan in Q1, a year-on-year increase of + 4.56%. However, the Q1 engineering plastics business has not been stripped off in 2021. The 2021q1 engineering plastics revenue is 132 million yuan, the cost is 117 million yuan and the gross profit is 16 million yuan; At the same time, liangqin and liangxinpeng merged in Q2 last year. If these two parts are excluded, the company’s Q1 same caliber revenue is + 14% year-on-year and gross profit yoy + 19%. After the outbreak, the overseas demand for general lighting was strong. In 2021, the export volume exceeded US $65 billion, an increase of 25% year-on-year, and the global market share reached more than 60%. The company’s single quarter revenue in 2021 was RMB 1.07/12.6/12.5/1.57 billion respectively. The revenue of 1.26 billion in Q1 this year shows that the company has continued the strong level of export last year. Commercial lighting is expected to have a good growth rate this year, and the company is expected to gain more market share in tob commercial business. The company has put into operation two new LDM production lines this year, and BMS production line is expected to be put into operation in Q3. Shanghai and Wuhan bases actively promote the improvement and expansion of equipment intelligence, and continue to make efforts in vehicle business.
In Q1, the margin of gross profit margin improved significantly in a single quarter, and the gross profit margin increased month on month. The high cost pressure of raw materials has eased, and the gross profit margin of Q1 company is 15.9%, which is 5pct higher than that of 2021q4. With the mitigation of the epidemic situation in Shanghai, the Shanghai base is expected to resume work and production in Q2. It is expected to restore the normal rhythm of export. The company can also transfer higher raw material costs through price increases and other measures in the future. At the same time, in the context of the Fed’s interest rate hike, the international exchange rate fluctuated greatly this year. The company also disclosed in its annual report that it would carry out foreign exchange derivatives trading business to reduce the impact of exchange rate fluctuations on the company’s performance.
Profit forecast
It is estimated that the company’s revenue from 2022 to 2024 will be 5.9/7/8.1 billion, and its net profit will be 4 / 6 / 8 billion, corresponding to pe13x / 10x / 7X from 2022 to 2024, maintaining the overweight rating.
Main risks of rating
The cost of raw materials has risen sharply, the epidemic in the Yangtze River Delta has developed beyond expectations, and the industry competition has intensified significantly.
