\u3000\u3 Guocheng Mining Co.Ltd(000688) 676 Hainan Jinpan Smart Technology Co.Ltd(688676) )
Events
Hainan Jinpan Smart Technology Co.Ltd(688676) released the annual report of 2021. In 2021, the company achieved an operating revenue of 3.302 billion yuan, an increase of 36.32% at the same time; The net profit attributable to the parent company was 235 million yuan, an increase of 1.31% at the same time; Deduct the net profit not attributable to the parent company of 202 million yuan, with a decrease of – 0.97%. The corresponding revenue of 2021q4 was 1.015 billion yuan, an increase of 45.14% at the same time; The net profit attributable to the parent company was 67 million yuan, a decrease of 1.77%.
Key investment points
The performance is in line with expectations and profitability is expected to improve
The company’s performance is in line with expectations. In 2021, the growth rate of the company’s profit was lower than that of its revenue, mainly due to the rise in the price of the company’s raw materials and the significant rise in the freight of its export business caused by the overseas epidemic, while the direct material cost of the company’s products accounted for more than 80% of the cost of its main business. The gross profit margin of the company’s main business in 2021 was 23.38%, down 3.16pcts. The pricing of the company basically adopts the cost plus method. With the company gradually completing the low-cost orders signed earlier, the company’s gross profit margin is expected to gradually rise in 2022.
The dry-type transformer industry is leading, and new energy drives downstream demand
The company is one of the advantageous enterprises in the global dry-type transformer industry. It mainly faces the medium and high-end market and has established long-term customer cooperative relations with many enterprises in the industry. The downstream application fields of the company’s dry-type transformer are mainly new energy, rail transit, high efficiency and energy saving, especially in wind power, high-power fan, photovoltaic raw material manufacturing, photovoltaic industrial and commercial power generation and other links. In 2021, the company’s revenue in the new energy field was 1.48 billion yuan, accounting for 45% of the main business revenue, an increase of 34.12% over the same period of last year, including 118.27% in the offshore wind power field, 60.46% in the Cecep Solar Energy Co.Ltd(000591) field and 87.84% in the energy storage field. We expect that with the development of offshore wind power, industrial and commercial distributed photovoltaic and photovoltaic upstream raw materials, the company is expected to continue to benefit from the demand brought by the high boom of new energy.
Energy storage business brings the second growth curve
The company is gradually launching energy storage business products. In addition to conventional low-voltage energy storage equipment, it has also launched medium and high-voltage direct hanging energy storage products. With the gradual operation of the company’s energy storage digital chemical plant in the future, the digital production of electrochemical energy storage equipment will be realized through the series interconnection of various production equipment and information systems, which can realize the annual capacity of energy storage products of 3.9gwh and open the second growth curve of the company.
Profit forecast
We predict that the company’s revenue from 2022 to 2024 will be 4.331 billion yuan, 5.569 billion yuan and 7.198 billion yuan respectively, and the EPS will be 0.95, 1.31 and 1.84 yuan respectively. The corresponding PE of the current stock price will be 17, 12 and 9 times respectively, giving the “recommended” investment rating.
Risk tips
The promotion of energy storage business did not meet expectations, the installation of wind power did not meet expectations, the installation of photovoltaic did not meet expectations, and the progress of convertible bond projects was not as expected.
