\u3000\u30 Beijing Jingyeda Technology Co.Ltd(003005) 93 Beijing Relpow Technology Co.Ltd(300593) )
Event: the company released its 2021 annual report and achieved a revenue of 1.478 billion yuan, a year-on-year increase of 75.37%. The net profit attributable to the parent company was 274 million yuan, a year-on-year increase of 122.02%. In 2022q1, the revenue was 471 million yuan, a year-on-year increase of 66.48%; The net profit attributable to the parent company was 87 million yuan, a year-on-year increase of 69.69%.
In a single quarter, it continued to grow month on month, with a strong momentum. In 2021, the company realized an operating revenue of 1.478 billion yuan (YoY + 75.37%) and a net profit attributable to the parent company of 274 million yuan (YoY + 122.02%). The increase of income and profit is mainly due to the sharp decline of the company's expense rate during the period while the demand of special and communication industries is large, and the profit is thickened. The expense rate during 2021 is 24.3%, a year-on-year decrease of 5.2pct.
1) quarterly, the company's 2021q4 revenue is 470 million yuan (YoY + 66.0%, QoQ + 21.7%), and the net profit attributable to the parent company is 79 million yuan (YoY + 43.9%, QoQ + 5.2%). In 2022q1, the revenue was 471 million yuan (YoY + 66.5%, QoQ + 0.3%), and the net profit attributable to the parent was 87 million yuan (YoY + 69.7%, QoQ + 9.9%). The single quarter revenue and net profit reached a new high, maintaining a month on month growth trend under the condition of a high base in 2021.
2) in terms of products, the continuous increase of aerospace market scale and the significant improvement of electrification level have led to the year-on-year increase of power products required for unit aerospace equipment. In 2021, the company achieved an operating revenue of 880 million yuan in special application fields such as aviation, aerospace and shipbuilding, with a year-on-year increase of 62.3%, of which Wuhan Yongli's revenue and net profit attributable to parent company were 285 million yuan (YoY + 23.7%) and 34 million yuan (yoy-11.93%) respectively, The decline in net profit was mainly due to the decline in comprehensive gross profit margin caused by the change in the structure of sales products. Benefiting from the accelerated construction of 5g communication base stations outside China and the rapid recovery of the communication industry, especially the export business from the epidemic, the company realized an operating revenue of 543 million yuan in the field of communication and network, with a year-on-year increase of 133.12%.
The gross profit margin has decreased, and the effect of cost control is obvious. The company's gross profit margin in 2021 was 47.3%, down 1.0pct from the same period of the previous year. It was mainly due to the change of product structure, and the sales of communication products increased significantly. Its gross profit margin in 2021 was 26.8%, which was far from the special products with a gross profit margin of 60.9%. In 2021, the company's expense ratio (including R & D expenses) during the period was 24.3%, with a sharp year-on-year decrease of 5.2pct, of which the sales expense ratio and management expense ratio were 4.1% and 5.2% respectively, with a year-on-year decrease of 0.7pct and 2.5pct respectively. In addition, the R & D expense rate of the company in 2021 was 13.6%, although it decreased by 1.0pct year-on-year, but the R & D investment was at a high level all year round, and the R & D expense increased by 63.2% over the previous year. At present, the localization rate of most products of the company can meet the strict requirements of customers and enhance the ability of the company to obtain orders. The company has a certain scale effect. Under the condition of ensuring the continuous promotion of R & D, the expense rate has decreased significantly and the profitability has increased significantly.
The inventory has increased significantly, and the high growth on the revenue side can be expected. At the end of the 21st century, the company's inventory was 739 million, an increase of 77.5% compared with the beginning of the period and 15.2% month on month. Among them, raw materials and products in process increased by 122.2% and 71.6% respectively compared with the beginning of the period. The significant increase in goods preparation indicates the increase of the company's order demand. The "goods issued" in the inventory increased by 133.93% compared with the beginning of the period, which verified the high growth of 22q1 income to a certain extent. The inventory of 2022q1 was 776 million, an increase of 5.0% month on month, and the future growth is still expected. In the past 21 years, the company's operating cash flow was - 65 million yuan, with a large difference from the net profit, mainly due to the rapid growth of business and the company's preparation for business expansion: 1) the increase of order demand led to the increase of material preparation reserves and the payment for raw materials; 2) the increase of personnel led to the increase of employee compensation expenses; 3) The expansion of business scale and the collection cycle of downstream customers affect the company's cash flow. Combined with multiple financial indicators and environmental factors, we believe that the company is currently in the period of strategic expansion, and the short-term decline in cash flow does not change the good situation of the company's operation.
Actively expand production to meet the strong demand of downstream. The company announced a fixed increase project, which plans to raise no more than 1.58 billion yuan for the construction of special power supply expansion project (construction period of 2 years), high reliability SIP power microsystem product industrialization project (construction period of 2 years), 5g communication and server power supply expansion project (construction period of 1 year), R & D center project and supplement working capital. In the future, as the company's raised investment projects are put into operation, the annual income will increase by 1.27 billion yuan and the net profit will increase by 245 million yuan. In addition, Yongli science and technology park has been basically completed by the end of 2021 and is planned to be put into use in the first half of 2022. We believe that this round of production expansion will contribute to the sustainable development of the company.
Investment suggestion: it is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 416 million, 586 million and 806 million respectively, EPS will be 156 yuan, 2.20 yuan and 3.03 yuan, and the corresponding PE of the current stock price is 25X, 18x and 13X. The company has been deeply engaged in special power supply and civil power supply for many years, and is expected to benefit from domestic substitution and the rapid growth of downstream demand, help the sustainable development of the company and maintain the "recommended" rating.
Risk warning: the risk of demand fluctuation in downstream industries; The risk that the capacity expansion is less than expected; The risk of goodwill impairment of Yongli technology.
