\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 60 Hangzhou Sunrise Technology Co.Ltd(300360) )
Event: the company released its annual report for 2021, and achieved a revenue of 1.21 billion yuan in 2021, with a year-on-year increase of 10.32%; The net profit attributable to the parent company was 318 million yuan, a year-on-year increase of 8.36%, which was in line with our expectations; At the same time, the company released the first quarter report of 2022, and achieved a revenue of 294 million yuan in the first quarter of 2022, with a year-on-year increase of 37.56%; The net profit attributable to the parent company was 71 million yuan, a year-on-year increase of 16.83%.
Ir46 Standard promotes a new round of meter replacement cycle, and AMI business grows steadily.
As a kind of measuring instrument for compulsory verification, the verification cycle of smart meter generally does not exceed 8 years. Starting from 2018, the first round of smart meters began to enter the peak of replacement. The second batch of bidding began in 2020, and the State Grid began to fully implement 698-ir46 smart meters, so as to promote a new round of meter replacement cycle. The company's intelligent measurement and acquisition system (AMI) segment had an operating revenue of 896 million yuan in 2021, with a year-on-year increase of 0.95%, accounting for 74% of the total revenue. The gross profit margin in 2021 was 40.07%, with a year-on-year increase of 2.48 PCT. Affected by the lack of core, the delivery of some smart meter orders was delayed. The revenue of intelligent power terminals and systems was 116 million yuan, a year-on-year increase of 23.2%; The revenue of intelligent flow instruments and systems was 28 million yuan, a year-on-year increase of 40.2%; The revenue of intelligent power distribution products and systems was 126 million yuan, a year-on-year increase of 118.7%; The revenue of IOT sensors and accessories was 29 million yuan, a year-on-year increase of 66.6%.
In the first quarter of 2022, the company's revenue increased by 37.56% year-on-year to 294 million yuan, mainly based on sufficient orders on hand and overcoming the delivery pressure under the epidemic to realize order confirmation. The growth rate of net profit attributable to the parent company was less than that of revenue, mainly due to the rise of raw materials and logistics costs under the epidemic.
The company's production capacity is expected to be further improved after the raised investment project is completed.
In 2017, the company raised 637 million yuan through non-public offering for the production and construction of Internet of things information platform on the energy demand side (production and construction projects of power, water, gas, heat metering and information acquisition system products on the demand side), intelligent manufacturing and construction of intelligent power instruments and intelligent power distribution equipment, etc. The annual report shows that by the end of 2021, the above construction projects have been closed, and the investment progress has reached more than 90%. In the first half of 2022, we expect to increase the production capacity of the above-mentioned smart terminal and distribution systems, which will also provide support for the company's smart terminal and distribution systems.
Profit forecast, valuation and rating: under the background of "double carbon" target, electronic watt hour meter has entered the intelligent era. On the basis of having the most basic power consumption measurement function, intelligent watt hour meter also meets the functional requirements of two-way measurement, step price, time-of-use price, peak and valley price, electricity theft prevention, information storage and processing. We maintain the forecast of net profit attributable to the parent company from 2022 to 2023 of RMB 406 / 526 million, increase the forecast net profit of RMB 660 million in 2024, and the current share price corresponds to 10 times of PE in 2022. The company's smart meter business demand is upward, the equipment terminal shipment is smooth, and the "buy" rating is maintained.
Risk tip: the bidding amount of power grid is less than expected, the expansion of energy consumption monitoring system is less than expected, and the price of raw materials increases.
