\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 100 Jiangsu Hengli Hydraulic Co.Ltd(601100) )
In 2021, the revenue increased by 18.51% year-on-year, and the net profit attributable to the parent company increased by 19.51% year-on-year. The company achieved a revenue of 9.309 billion yuan in 2021, with a year-on-year increase of 18.51%; The net profit attributable to the parent company was 2.694 billion yuan, with a year-on-year increase of 19.51%. The performance growth was mainly due to: 1) actively expanding the share of domestic export models and the overseas market share of foreign brands; 2) Actively follow the trend of electrification of construction machinery; 3) Optimize and adjust the product structure. In 2021, the gross profit margin / net profit margin was 44.01% / 28.99%, with a year-on-year change of -0.09/0.21 PCT. The stability of the company’s profitability was due to the improvement of the company’s international market share, the stability of the gross profit margin under the background of rising raw material costs, and the good control of the cost rate during the period. In 2021, the company’s sales / management / R & D / financial expense ratio was 1.20% / 2.44% / 6.83% / 0.96%, with a year-on-year change of -0.16 / – 0.11 / – 0.97 / + 2.90 PCT. The net operating cash flow of the company was 2.796 billion yuan, a year-on-year increase of 41.15%. The company’s revenue in the first quarter of 2022 was 2.200 billion yuan, a year-on-year decrease of 22.97%; The net profit attributable to the parent company was 528 million yuan, a year-on-year decrease of 32.56%, mainly due to the decline in the prosperity of the construction machinery industry.
The market share of excavator oil cylinder / hydraulic pump valve continues to increase. In terms of products, 1) the revenue of hydraulic cylinder was 5.187 billion yuan, with a year-on-year increase of 15.34%, which was caused by the rising demand for global infrastructure and the export growth of domestic brands. Specifically, the sales volume of excavator cylinder / non-standard cylinder was 8553 / 168400, with a year-on-year increase of 21.13% / 36.23%. In 2021, China sold 342800 excavators, with a year-on-year increase of 4.63%. The growth rate of the company’s Excavator cylinder sales was significantly higher than that of the industry, indicating that the market share of the company’s products has increased. Meanwhile, the revenue of lifting and new energy products in non-standard oil cylinders increased by 57.94% and 88.84% year-on-year. 2) The revenue of hydraulic pump and valve was 3.236 billion yuan, with a year-on-year increase of 38.37%. The increase was mainly due to the continuous improvement of the market share of main control pump and valve and motor reducer assembly for excavator, the obvious large-scale export of aerial work vehicles in China and the successful mass production of proportional solenoid valves in non construction machinery field. 3) The revenue of hydraulic system was 1.963 billion yuan, with a year-on-year increase of 25.07%. The products have been widely used in hydraulic component testing, tunneling, new energy development, petrochemical industry and other fields.
Actively promote the internationalization and diversification strategy, and the R & D investment continues to increase. In terms of internationalization, in 2021, the company’s China / overseas revenue was RMB 8.0611235 billion, with a year-on-year increase of 16.61% / 33.39%. The company actively promoted the establishment of overseas factories and has successfully established factories in Mexico at present; In terms of diversification, the company actively researched and developed non excavator products and successively launched industrial pumps, proportional solenoid valves, cycloidal motors and other products to expand from excavator to non excavator industry. Meanwhile, the company continued to increase R & D investment, with R & D expenses of 636 million yuan in 2021, a year-on-year increase of 106.09%.
Risk warning: downstream demand is less than expected; Risk of recurrent outbreaks; The expansion of new fields is less than expected.
Investment suggestion: considering the impact of the epidemic on the manufacturing industry, we lowered the net profit attributable to the parent company in 202224 to RMB 2.716/30.10/3.370 billion (RMB 3.211/3.685 billion before 202223), corresponding to pe20 / 18 / 16 times, and maintained the “buy” rating.
