\u3000\u3 China Vanke Co.Ltd(000002) 960 Jade Bird Fire Co.Ltd(002960) )
Event: the company released the first quarterly report of 2022. In 2022q1, the company achieved a sales revenue of 746 million yuan, a year-on-year increase of 64.71%, a net profit attributable to the parent of 67 million yuan, a year-on-year increase of 30.64%, and a net profit attributable to the parent of 63 million yuan after deduction, a year-on-year increase of 39.40%. Excluding the factors of consolidation, the sales revenue is about 140 million and the profit is about 7 million. The growth rate of the company's endogenous growth is about 33% on the revenue side and 18% on the profit side.
Core view: revenue and profit are in line with expectations. The company has made concerted efforts in internal and external growth, achieved substantial growth at the revenue end, and the growth rate at the profit end is lower than that at the revenue end. The main reasons are: ① the gross profit of left-hand lighting in the consolidated statement is low; ② The cost of raw materials has increased significantly; ③ During the period of business expansion, various expense rates are at a high level. During the reporting period, the progress of the company's industrial fire protection sector and energy storage sector was obvious, which was a major business highlight, indicating that the company accelerated into the business transition period. The company is a scarce manufacturing target with continuous improvement of traditional business (general fire protection) + clear second growth curve (emergency evacuation) + catalysis brought by high-end business (Pan industry / energy storage).
Comments:
The endogenous and external forces have made concerted efforts, and the revenue side has achieved substantial growth. Under the background of multi-point and repeated outbreaks in China, the company actively responded in terms of inventory management, logistics tracking and capacity linkage, so that all business segments carried out smoothly. ① The general fire alarm business grew steadily, the bluebird brand and overseas business were relatively stable, and the long-term brand continued to grow by more than 40%; ② Emergency lighting and intelligent evacuation business maintained a rapid growth trend, with an increase of more than 200% over the same period last year; Gas fire extinguishing and gas detection businesses maintained steady and rapid growth. ③ The pan industrial fire protection sector has brought significant business increment, with more than 10 million shipments, and the energy storage fire protection business is also advancing rapidly.
During the business expansion period, the profitability is under pressure, and the profit growth rate is lower than the revenue growth rate. In terms of gross profit margin: the gross profit margin of Q1 company in 2022 was 39.19%, year-on-year - 3.52pct, mainly due to: ① the price rise of raw materials such as electronic components and cables, and the pressure on the cost side of the company; ② The company adjusted its business structure and increased the proportion of emergency evacuation business. Through the linkage mode of external procurement + internal R & D, the company actively promotes cost reduction and efficiency increase, increases the promotion of self-developed "Crested Ibis" chips, realizes self-made core parts, and maintains the company's gross profit margin within a controllable range. In terms of expense rate: in Q1 2022, the expense rate during the period was 35.75%, with a year-on-year increase of + 50.10%, of which the expense rates of sales, management, R & D and finance were + 9.26, + 3.57, + 4.12 and -0.90pct respectively year-on-year. The company's scale expansion, sales, management, R & D and expenses reached 110 million, 60 million and 50 million respectively, with a year-on-year increase of 67%, 40% and 53% respectively. Combined with the above effects, the company's net interest rate in the first quarter was 9.85%, with a year-on-year increase of -1.36pct. We expect that the company's internal control optimization will be strengthened in the future. With the end of large amortization of equity incentive expenses, the pressure on the expense side will slow down during the year. Cash flow: in the first quarter, the company's operating cash flow was - 350 million, which was due to the company's business model and will be collected in Q4. In 2022, the operating cash flow of Q1 company increased by 21.65% year-on-year, showing a significant improvement trend, mainly due to the company's strengthening of accounts receivable management. The pan industrial fire protection sector and energy storage sector have made significant progress. Intelligent fire protection has helped the industrial upgrading, and the company has entered a business transition period. In the first quarter of 2022, the company actively and orderly promoted the pan industrial fire protection sector, delivered more than 10 million yuan, and successively won the bid for representative projects including Wanhua Chemical Group Co.Ltd(600309) Fujian Industrial Park, Ningde Fuding times lithium battery plant, AVIC lithium battery and so on; In terms of energy storage and fire fighting, the company continues to enrich, iterate, multi-dimensional, diversified and combined "detection + fire fighting" energy storage product system, and promote project implementation and multi-dimensional cooperation. Recently, the company ranked first in the "innovation of energy storage fire safety enterprises" of energy storage application branch of CESA China National Chemical Engineering Co.Ltd(601117) and physical power industry association. In the field of intelligent fire protection, the company carried out the construction of Huangshi fire safety management, Nanjing Logistics Center, Guangxi Vocational and technical college and other projects during the reporting period. According to the annual report of 2021, the number of online units of " Jade Bird Fire Co.Ltd(002960) cloud" currently exceeds 22000, and the number of online sites exceeds 1.5 million. The company's product strength is constantly moving towards high-end, actively promoting industrial upgrading and consolidating the company's all-round competitive strength.
Investment suggestion: it is estimated that the operating revenue from 2022 to 2024 will be 5.207 billion yuan, 7.294 billion yuan and 10.235 billion yuan respectively, with a year-on-year growth rate of 34.8%, 40.1% and 40.3% respectively, and the net profit attributable to the parent company will be 670 million yuan, 905 million yuan and 1.222 billion yuan respectively, with a year-on-year growth rate of 26.5%, 35.0% and 35.1% respectively. The corresponding ratings of "buy" and "buy" were -9.9 and -2.2 respectively, with the corresponding ratings of "12.59 and" 2.2 "respectively.
Risk warning: market competition intensifies; The expansion of emergency evacuation market is less than expected; Business expansion in the industrial field is less than expected; The collection is less than expected, resulting in the increase of bad debts; Poor management of major shareholders has dragged down listed companies.
