\u3000\u30 Beijing Telesound Electronics Co.Ltd(003004) 50 Wuxi Lead Intelligent Equipment Co.Ltd(300450) )
Key investment points
Event:
1. The company released its annual report for 2021, with annual revenue of 10 billion yuan, a year-on-year increase of 71%; The net profit attributable to the parent company was 1.585 billion yuan, a year-on-year increase of 106%; Net profit deducted from non parent company was 1.532 billion yuan, with a year-on-year increase of 118%. 2. The company released the first quarterly report of 2022, and achieved a revenue of 2.9 billion yuan during the period, with a year-on-year increase of 142%; The net profit attributable to the parent company was 346 million yuan, a year-on-year increase of 73%; Net profit deducted from non parent company was 341 million yuan, with a year-on-year increase of 75%.
In 2021, the performance slightly exceeded expectations, lithium battery equipment maintained high profitability, and the proportion of revenue increased
1) in 2021, the company’s revenue and profit increased significantly, mainly due to the rapid development of lithium battery industry, and the rapid development of non lithium battery businesses such as intelligent logistics, 3C and automobile intelligent production line. 2) In 2021, the revenue of lithium battery equipment / intelligent logistics / photovoltaic equipment / 3C equipment accounted for 69% / 11% / 6% / 6% respectively, of which the revenue of lithium battery equipment increased by 14 PCT. 3) In 2021, the gross profit margin of lithium battery equipment was 34.6%, with a year-on-year increase of 1.1pct, maintaining a high profit level. 4) In 2021, the wholly-owned subsidiary Zhuhai Titan (mainly engaged in lithium battery equipment in the back section) achieved a revenue of 1.943 billion yuan, a net profit of 170 million yuan (only 3 million yuan in the first half of the year), and the annual net profit rate increased to 8.7%.
Maintain rapid growth in the first quarter of 2022; Affected by the increase of product structure and outsourcing, the gross profit margin decreased slightly, a large number of orders were delivered, and the company’s revenue and profit maintained rapid growth in the first quarter of 2022. The comprehensive gross profit margins of 2021q4 and 2022q1 companies are 29% / 31% respectively. The low profitability is mainly due to the change of product structure. In the second half of 2021, the revenue proportion of intelligent logistics system increased, and its gross profit margin was 15%, far lower than that of lithium battery equipment.
The international layout is fruitful. Overseas orders in 2022 are expected to become a new growth point of lithium battery equipment business. The company is an equipment enterprise with international layout earlier in China. At present, it has set up subsidiaries in the United States, Germany, Sweden, Japan and South Korea. The company maintains good cooperation with Volkswagen, northvolt, ACC and other global first-line main engine manufacturers and battery manufacturers. It is expected that overseas lithium battery equipment orders, especially in Europe, will exceed expectations in 2022.
New product expansion, benefiting from the wave of lithium battery production expansion, and full orders; Build a non-standard automation platform enterprise. The company is a global leader in lithium battery equipment. New products such as coater, roller press and high-speed lamination machine are constantly introduced to the market and continue to have strong competitiveness. In 2021, the company signed a total of 18.7 billion yuan of new equipment orders (excluding tax), a record high over the years. It is expected that the performance will maintain rapid growth in 2022. Taking advantage of the competitive advantages of platform companies, the company is expected to replicate its advanced R & D and management experience to other fields and become the leader of non-standard automation equipment.
Profit forecast and valuation
It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 2.55/36.7/4.63 billion respectively, with a three-year compound growth rate of 43%, corresponding to 27 / 19 / 15 times of PE respectively. Maintain the “buy” rating.
Risk tip: the production expansion of lithium battery enterprises is lower than expected; New business expansion was lower than expected.
