\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 82 Suzhou Slac Precision Equipment Co.Ltd(300382) )
Event: the company released its 2021 annual report. In 2021, the company realized an operating revenue of 1.003 billion yuan, a year-on-year increase of 13.66%; The net profit attributable to the owners of the parent company was 107 million yuan, a year-on-year increase of 67.95%.
Comments:
Revenue growth picked up and profitability picked up. On the revenue side, the company's revenue in 2021 was 1.003 billion yuan, an increase of 13.66% at the same time. Quarterly, the revenue growth rate of 2021q1-q4 was - 0.58%, 3.82%, 23.93% and 21.96% respectively. At this stage, the company's traditional business cans and easy lid equipment still account for a large proportion of revenue. Affected by the epidemic, the revenue growth rate was under pressure in 2020, and showed a gradual recovery trend in 2021; On the profit side, the company realized a net profit attributable to the parent company of 107 million yuan in 2021, an increase of 67.95% at the same time. The growth rate of Q1-Q4 net profit attributable to the parent company was 110.32%, - 42.07%, 162.58% and 378.67% respectively. In 2021, the gross profit margin was 37.26%, an increase of 3.12 PCT at the same time, the net profit margin was 9.18% and an increase of 273 PCT at the same time. With the recovery of income scale, the profitability showed signs of improvement. In 2021, the sales expense rate was 2.64%, decreased by 0.46 PCT, the management expense rate was 10.55%, decreased by 0.09 PCT, the financial expense rate was 3.06%, decreased by 1.66 PCT, the R & D expense rate was 3.82%, increased by 0.4 PCT, the R & D investment continued to increase, and the competitiveness continued to consolidate.
The main business of can and lid equipment is expected to maintain rapid growth. In 2021, the demand of the pop can market recovered after the epidemic, and the orders of the company increased rapidly. In 2021, the business income of the pop can production line of the company was 365 million, an increase of 25.76%, the gross profit margin was 37.97%, an increase of 11.69 PCT, and the business income of the pop lid production line was 293 million, a decrease of 9.40%, the gross profit margin was 48.13%, an increase of 7.23 PCT. The company plans to use 150 million of the fixed raised investment fund for the manufacturing project of Suzhou aluminum bottle high-speed automatic production line, overweight the traditional main business and increase the layout of aluminum bottle packaging cans. In addition, the company has abundant orders on hand. Up to now, the top five customer orders of the company are orders for cans and lids. The orders of other customers totaled 268 million, with a total of 952 million orders on hand, a year-on-year increase of 110.15%. The short-term performance is guaranteed.
Steadily promote the layout of new energy shell business and release key battery capacity. Taking advantage of the long-term exploration, reserve and pre research in the field of ultra-thin metal forming technology and automatic process in the field of can making and cover making, and combined with the characteristics of new energy batteries, the company has specifically studied and developed a high-speed automatic battery shell production line, which has high forming accuracy, better consistency and higher production line efficiency. In 2021, the company will continue to accelerate the further implementation of Xinxiang Shengda, Anhui Sixiang and Changzhou Lesheng projects. At present, the plant construction of Xinxiang Shengda and Anhui Sixiang has come to an end. Changzhou Laisheng has also completed the registration procedures for the change of ownership of the land use right in March 2022 and obtained the real estate ownership certificate. The first line of cylindrical aluminum shell has been running for more than half a year and has achieved mass production. Two new lines are under commissioning. The large-diameter cylindrical steel shell has completed the relevant process verification and technical reserve, entered the sample trial production stage, and the core host equipment for mass production has also been put into manufacturing. At present, the laboratory simulation and the design of some main production equipment of square aluminum shell have been completed, and the research of key process has also been verified by experiments. The company will focus on the layout of new energy battery shell business in the future, which is expected to open the second growth curve.
Profit forecast and investment rating: we estimate that the net profit attributable to the parent company from 2022 to 2024 will be 208 million yuan, 315 million yuan and 468 million yuan respectively, and the corresponding EPS will be 0.36 yuan / share, 0.54 yuan / share and 0.81 yuan / share respectively. The corresponding PE of the current stock price will be 29 times, 19 times and 13 times respectively. Based on the potential expansion space of the company's future business, we maintain the "buy" rating of the company.
Risk factors: the expansion of the company's battery case business did not meet expectations, and the uniqueness and leadership of the company's technology were broken.
