\u3000\u30 Shaanxi Zhongtian Rocket Technology Co.Ltd(003009) 93 Shandong Yuma Sun-Shading Technology Corp.Ltd(300993) )
Event: in 2021, the company realized an income of 520 million yuan, an increase of 35.16% at the same time, a net profit attributable to the parent of 140 million yuan, a decrease of 29.87% at the same time, a deduction of 135 million yuan from non net profit, a decrease of 39.55% at the same time, an EPS of 1.19 yuan, and a dividend of 2 yuan (tax included) for every 10 shares. The demand of the company's downstream building shading products increased rapidly, and the performance met expectations. In 2022q1, the company realized a revenue of 114 million yuan, an increase of 9.64% at the same time. The net profit attributable to the parent company was 269343 million yuan, a decrease of 12.77% at the same time. The non net profit deducted was 268437 million yuan, a decrease of 9.49% at the same time. Affected by the repeated covid-19 pneumonia epidemic in China and the conflict between Russia and Ukraine, the revenue growth slowed down, and the rise of crude oil, energy consumption and other costs led to a year-on-year decline in profits.
Comments:
The downstream demand recovered rapidly, and the production and sales of shading materials increased. From the perspective of spin off, in 2021, the company's revenue from shading fabrics, dimmable fabrics and sunshine fabrics reached 178 million yuan, 162 million yuan and 160 million yuan, with an increase of 34.42%, 45.16% and 29.82% respectively. The impact of covid-19 epidemic weakened, the prosperity of building shading industry was high, the demand of downstream customers outside China of the company recovered rapidly, the production capacity of shading fabrics continued to expand, and the output and sales distribution of shading fabrics increased by 37.81% in 202137.43% to 44.46 million square meters and 44.99 million square meters. In March 2022, the conflict between Russia and Ukraine led to the postponement of some customer orders, and the spread of covid-19 epidemic in China affected production and logistics, and the growth rate of revenue slowed down in 2022q1.
The cost of raw materials affects the gross profit margin, and the financial expense rate decreases year-on-year. 1) In 2021, the gross profit margin of the company decreased by 3.01pct to 43.57% at the same time, which was mainly affected by the rise in the cost of raw materials. Among them, the gross profit margin of shading fabrics, dimmable fabrics and sunshine fabrics decreased by 2.08pct, 0.97pct, 5.09pct to 33.70%, 54.16% and 46.58% at the same time. In 2022q1, the gross profit margin of the company decreased by 5.09pct to 41.53%, which was greatly affected by the rise of raw material costs and the recurrence of epidemic diseases. 2) In 2021, the company's sales, management, R & D and financial expense rates increased by -0.03pct, -0.44pct, 0.21pct, -3.38pct to 3.18%, 5.67%, 3.35% and - 0.60%. The impact of exchange rate and the increase of interest income led to a significant decline in the financial expense rate, while other expense rates remained basically stable. 3) In 2021, the company's net cash flow from operating activities increased by 2.02% to 152 million yuan, mainly due to the expansion of production, the increase of commodity purchase and related taxes, resulting in the growth rate lower than the profit performance.
The functional sunshade market continues to expand, and the company improves the competitiveness of the industry. The penetration rate of functional sunshade products in China is at a low level, only 4.27% in 2021. With the improvement of consumers' concept of green energy conservation and environmental protection, the government encourages the development of functional sunshade products, and the market scale of functional sunshade industry is expected to maintain rapid growth. As an industry leader, the company won the honors of "China industry university research cooperation innovation demonstration enterprise" and "outstanding contributor of Shandong innovation driven development award" in 2021 to further improve product R & D capability, improve the conversion rate of scientific research achievements, and continue to improve the intelligence and automation level of production process. The company promotes the project of raising investment and expanding production, strives to achieve full production in 2022, continues to expand the orders of key customers, and promotes the growth of revenue.
Profit forecast and investment suggestion: due to the short-term impact of the conflict between Russia and Ukraine on the delivery of the company's products to Europe, we slightly lowered the forecast of the company's net profit attributable to the parent company from 2022 to 2023 to 177 / 228 million yuan (the original value was 182 / 235 million yuan), and the forecast of the net profit attributable to the parent company in 2024 to 272 million yuan. At present, the stock price corresponds to 30.93 times PE in 22 years. The company has obvious advantages in the industry. The functional building sunshade market has a large space for development in the future. After short-term stock price adjustment, the valuation is at a low level and maintains the "buy" rating.
Risk factors: covid-19 epidemic spread risk, exchange rate fluctuation risk, raw material price fluctuation risk, Russia Ukraine conflict risk, etc.
