\u3000\u3 Guocheng Mining Co.Ltd(000688) 777 Zhejiang Supcon Technology Co.Ltd(688777) )
Event:
On the evening of April 25, Zhejiang Supcon Technology Co.Ltd(688777) released the first quarterly report of 2022, realizing an operating revenue of 981 million yuan, a year-on-year increase of 34.56%; The net profit attributable to the parent company was 60 million yuan, with a year-on-year increase of 70.94%; Deduct non net profit of 40 million yuan, with a year-on-year increase of 144.78%; The basic earnings per share was 0.12 yuan, a year-on-year increase of 71.43%.
Comments:
Downstream industries have strong digital demand
In the first quarter of 2022, the company’s operating revenue increased by 34.56% year-on-year. This is mainly due to the strong demand for digitization and intelligence in the downstream petrochemical, chemical, electric power, metallurgy, medicine, building materials and other industries of the company, the market share of the company’s core products continues to lead, and the continuous improvement of the ability of digital and intelligent products and services promotes the rapid growth of business income.
The gross profit margin increased and the sales expense rate decreased significantly
In the first quarter of 2022, the company’s gross profit margin was 39.14%, with a month on month increase of 0.94 PCT and a year-on-year increase of 1.81 PCT. In terms of expenses, the company’s sales expense ratio decreased by 3.55 PCT year-on-year in the first quarter of 2022; The management expense ratio increased by 1.16pct year-on-year; The financial expense ratio decreased by 0.12pct year-on-year; The R & D expense ratio increased by 0.42pct year-on-year. The overall expense ratio decreased by 1.85pct year-on-year, adding the growth factors of gross profit margin, so that the growth rate of net profit attributable to parent company exceeded the growth rate of revenue.
Profit forecast
Considering the stability of the company’s Chinese market and the great breakthrough made in the international market, we predict that the revenue in 202224 will be RMB 5.96676369621 billion, the net profit attributable to the parent company will be RMB 761/9.491235 million respectively, the EPS will be RMB 1.53/1.91/2.49/share respectively, and the corresponding PE will be 39x / 31x / 24x respectively. Maintain the “overweight” rating.
Risk tips
\u3000\u30001. Systemic risk, 2 Downstream capex volatility risk, 3 Product expansion was less than expected.
