\u3000\u3 Shengda Resources Co.Ltd(000603) 606 Ningbo Orient Wires & Cables Co.Ltd(603606) )
Event:
The company released the report for the first quarter of 2022. In the first quarter, the revenue was 1.816 billion yuan, with a year-on-year increase of 25.6%, and the net profit attributable to the parent was 278.3 million yuan, with a year-on-year increase of 0.16%. After deduction, the net profit attributable to the parent was 277.4 million yuan, with a year-on-year increase of 0.76%. The performance was in line with expectations.
Comments:
Due to the epidemic, accounts receivable increased by 877 million yuan from January to March, and the accrual rules affected the performance of net profit
In the first quarter, the epidemic occurred frequently all over the country, affecting the recovery of payment for goods. According to the determination method and accounting treatment method of the expected credit loss of the company's accounts receivable, the expected loss rate of accounts receivable within one year is 5%, and the corresponding credit impairment loss is 43.85 million yuan. We believe that the credit of the company's main customers is good, and the provision will not actually occur. After removing this part, the net profit attributable to the parent company should be 316 million yuan, a year-on-year increase of 13.71%.
Strong orders in hand, supporting the annual performance and continuing high growth on the basis of a high base
2021 is a big year for offshore wind power rush. Most of the operating revenue of Companies in the industry has reached a historical height. It is challenging to maintain a double-digit revenue growth on the basis of a high base. At the end of February 2022, the company's orders on hand were 6.311 billion yuan, and large orders were obtained in March. At the end of the month, the cumulative orders on hand reached 9.187 billion yuan. According to the conservative estimation of the average implementation cycle of the 11 month project, we believe that the identifiable revenue in the next nine months is about 7.5 billion yuan, and the annual revenue can reach about 9.3 billion yuan, with a year-on-year increase of about 17.7%.
Offshore engineering will consolidate its leading position and provide additional space for overseas markets
The company actively expanded its offshore engineering business, with orders totaling 839 million yuan The transformation of the company into EPC general contractor provides customers with complete sets of submarine cable solutions, which helps to consolidate the leading position in the market. The company actively develops one belt, one road, and other international high-end markets, and the participating TenneT consortium won the bid for the high voltage submarine cable project, which has far-reaching significance for the layout of the high-end European market. Based on the company's good development prospects, we maintain the original forecast, that is, from 2022 to 2024, the operating revenue is 93 / 111 / 14.1 billion respectively, the net profit is 12.7/16.2/21.1 billion respectively, the closing price corresponding to PE on April 22, 2022 is 23.4/18.3/14.1 times respectively, maintain the "overweight" rating and maintain the target price of 51.52 yuan.
Risk tips
New market development is less than expected; The rhythm of sea breeze installation slows down; The release of new capacity was less than expected.
