\u3000\u3 Shengda Resources Co.Ltd(000603) 416 Wuxi Xinje Electric Co.Ltd(603416) )
Performance summary: the company achieved an operating revenue of 1.299 billion yuan in 2021, with a year-on-year increase of 14.54%; The net profit attributable to the parent company was 3.03 yuan, a year-on-year decrease of 8.46%; The net profit deducted from non parent company was 265 million yuan, a year-on-year decrease of 11.33%; EPS was 2.16 yuan. In the first quarter of 2022, the revenue was 321 million yuan, a year-on-year increase of 4.23%; The net profit attributable to the parent company was 75 million yuan, a year-on-year decrease of 15.62%.
The company actively responded to the price rise of industrial control, and the profit is expected to recover quickly. In 2021, the company’s gross profit margin was 40.37%, a year-on-year decrease of 3.43pp, and in the first quarter of 2022, the gross profit margin was 39.83%, a year-on-year increase of 0.08pp. On April 16, the company issued a notice on servo price adjustment, in which DS3 series 750W and below increased by 70 yuan and 850w-2.6kw by 80 yuan on the basis of the original price; Ds5c1 and ds5c series 750W and below will increase by 50 yuan on the basis of non terminal price, and 850w-2.6kw will increase by 80 yuan on May 1. We believe that this price adjustment will enable the company to better cope with the risk of rising raw material prices, and also show that the company has certain bargaining power with downstream equipment manufacturers, which is expected to drive the gross profit margin to stabilize and rise.
The product technology has achieved a breakthrough, and the driving system resonates with the downstream emerging industries at the same frequency. In 2021, the company’s driving system business achieved a revenue of 531 million yuan, a year-on-year increase of 24.8%, and the business proportion increased to 40.97%. The scale exceeded the PLC business for the first time. During the reporting period, the six in one multi axis drive EtherCAT bus servo ds5c-m series was grandly launched. While saving installation space, it can perfectly realize the synchronization of gantry and provide better solutions for multi axis equipment. In addition, with the rapid growth of 3C and lithium batteries and the improvement of the penetration rate of industrial Siasun Robot&Automation Co.Ltd(300024) the driving system will fully benefit.
The penetration of Small PLC is accelerated, and the brand and scale effect promote the company to enter the medium-sized PLC market. In 2021, the company’s PLC business achieved a revenue of 516 million yuan, a year-on-year increase of 5.17%. The company makes full use of the brand advantages of PLC, actively expands the market, and still maintains the leading position of domestic capital in the small PLC market. With the improvement of localization rate, the company is expected to take the lead in realizing the penetration of medium-sized PLC market by using PLC technology experience, boost the company’s accelerated expansion in 3C, photovoltaic, semiconductor and other high-end manufacturing fields, and its performance is expected to be fully realized.
Profit forecast and investment suggestions. It is estimated that the company’s revenue from 2022 to 2024 will be 1.619 billion yuan, 1.987 billion yuan and 2.407 billion yuan respectively, and the net profit attributable to the parent company will maintain a compound growth rate of 20.13% in the next three years. The company has established the brand advantage of core products, and technological innovation is expected to promote the company’s performance and maintain the “hold” rating.
Risk tip: the risk of macroeconomic fluctuations; Risk of price rise of raw materials such as IGBT; Risk of changes in preferential tax policies.
