\u3000\u30 Xuchang Ketop Testing Research Institute Co.Ltd(003008) 87 Pony Testing International Group Co.Ltd(300887) )
Event:
The company’s 2021 revenue and net profit attributable to the parent company reached RMB 207million and RMB 220million respectively year-on-year, with year-on-year growth of 40.70% and 34.54%. The performance exceeded expectations, and the detection business and measurement business grew rapidly.
Key investment points:
The net profit attributable to the parent company in 2021 increased by 34.54% year-on-year, and the performance slightly exceeded expectations.
Benefiting from the growing demand of various testing sectors and the company’s continuous mergers and acquisitions, the company achieved a revenue of RMB 2.007 billion in 2021, a year-on-year increase of 40.70%, and a net profit attributable to the parent company of RMB 220 million, a year-on-year increase of 34.70%. Among them, the revenue of testing business was 1.998 billion yuan, a year-on-year increase of 58.50%, and the revenue of measurement business was 7.5879 million yuan, a year-on-year increase of 47.09%
The company has integrated advantages in many fields, and its revenue and profit have been continuously improved.
The company’s business covers the fields of life science, health and environmental protection, automobile and other consumer goods, safety assurance, electronics and electricity. Businesses in sectors other than food and environmental testing, such as automobile, medical treatment and military industry, grew rapidly. In the 21st year, the revenue from health and environmental protection testing was 1.724 billion yuan, the revenue from automobiles and other consumer goods was 188 million yuan, the measurement revenue was 7.5879 million yuan, and the certification revenue was 1.306 million yuan. The revenue and profit exceeded the target.
The company completed the additional issuance, and the net interest rate increased significantly.
On September 28, 2021, the company announced that in 2022, the company issued 22418670 ordinary shares to specific objects at a price of 55.30 yuan per share, raising a total of 1.24 billion yuan. After deducting the issuance expenses, the net amount of funds raised was 1.227 billion yuan. The gross profit margin and net profit margin in 21 years were 46.16% and 10.98% respectively.
Maintain the “buy” rating of the company and maintain the target price of 81.95 yuan.
It is estimated that the company’s revenue from 2022 to 2024 will be 25.08 (+ 2.23, 9.76%), 30.85 (+ 2.3, 8.1%) and 3.764 billion yuan respectively; The net profit attributable to the parent company is 2.85 (+ 0.11, 4.01%), 3.74 (+ 0.12, 3.31%) and 491 million yuan, corresponding to EPS of 179, 2.35 and 3.08 yuan respectively. Considering that the company is the comprehensive leader of third-party testing, it maintains the target price of 81.95 yuan, corresponding to 45 times PE in 2022, and maintains the “buy” rating.
Risk tips
The brand and credibility are adversely affected; Management risks brought by expansion; Changes in industrial policies.
