\u3000\u30 Beijing Telesound Electronics Co.Ltd(003004) 15 Guangdong Yizumi Precision Machinery Co.Ltd(300415) )
Event: the company released the annual report of 2021, and the company achieved a revenue of 3.533 billion yuan (+ 29.97% YoY) in 2021; The net profit attributable to the parent company was 516 million yuan (+ 64.24% YoY); The net profit attributable to the parent company after deducting non profits was RMB 474 million (+ 55.98% YoY).
The company released the first quarterly report of 2022. In 2022q1, the company achieved a revenue of 899 million yuan (+ 18.28% YoY); The net profit attributable to the parent company was 111 million yuan (+ 3.07% YoY); The net profit attributable to the parent company after deducting non profits was 101 million yuan (- 0.30% YoY).
Event comments:
The performance increased rapidly in 2021, reaching a record high. In 2021, the company achieved an operating revenue of RMB 3.533 billion. On the whole, the performance of the company increased rapidly in the first half of the year and developed steadily in the second half of the year. The reason for the increase in revenue is that the company’s main products, such as injection molding machines and die-casting machines, are in a high prosperity, the company’s operation is good, and its performance maintains rapid growth. In terms of products, all product sectors made concerted efforts and achieved rapid growth. The sales revenue of injection molding machines was 2.585 billion yuan (+ 27.70% YoY; the revenue accounted for 73.16%); The sales revenue of die casting machine is 572 million yuan (+ 32.20% YoY; the revenue accounts for 16.20%); Sales revenue from other businesses was 177 million yuan (+ 69.25% YoY; revenue accounted for 5.02%); The sales revenue of rubber machine is 127 million yuan (+ 57.42% YoY; the revenue accounts for 3.60%); The sales revenue of other products is 71 million yuan (accounting for 2.02%).
The prosperity of downstream industries of main products is good, which drives the increase of demand for molding equipment. As a supplier of special equipment for molding, the company’s main products are injection molding machines, die-casting machines and rubber machines. Among them, injection molding machines are mainly used in automobile industry, household appliance industry, 3C industry and packaging industry; Die casting machine is mainly used in automobile industry, motorcycle industry, 3C industry and home appliance industry; Rubber machine is mainly used in automobile, electric power and household appliance industries. In terms of sub industries, the company covers a wide range of downstream industries, mainly including automobile (revenue accounting for 18.85%), 3C products (revenue accounting for 15.64%), household appliances (revenue accounting for 12.05%), daily necessities (revenue accounting for 9.99%), packaging (revenue accounting for 9.35%), building materials (revenue accounting for 8.36%), medical treatment (revenue accounting for 3.86%) and light industry (revenue accounting for 5.85%). According to the statistics of China Automobile Association, in 2021, China’s automobile output was 26.082 million, a year-on-year increase of 3.4%, of which the output of new energy vehicles was 3.545 million, a year-on-year increase of 159.5%; According to the statistics of the Institute of information and communications technology, in 2021, the total shipments of mobile phones in China totaled 351 million, a year-on-year increase of 13.9%; According to the data of China Household Appliances Association, the income of China’s household appliance industry reached 1.73 trillion yuan in 2021, a year-on-year increase of 15.5%.
The demand side of 2022q1 is affected by covid-19 epidemic in the short term, and the driving force for long-term growth remains. In 2022q1, the company achieved a revenue of 899 million yuan (+ 18.28% YoY); The net profit attributable to the parent company was 111 million yuan (+ 3.07% YoY); The net profit attributable to the parent company after deducting non profits was 101 million yuan (- 0.30% YoY). From last year’s revenue structure, the company’s main sales areas are South China (revenue accounting for 34.00%) and East China (revenue accounting for 28.83%). In the first quarter of 2022, the epidemic situation in South China and East China was relatively serious, which had a corresponding impact on the industrial chain. The impact time depended on the progress of epidemic prevention and control. However, in the long run, the demand of the main downstream industries of the company has entered a stable stage, and Xinneng automobile is still in a rapid growth period, which is expected to drive the continuous growth of the company’s performance.
Actively arrange production capacity and make full preparations for the improvement of production capacity in the future. The company has developed well in recent years and has actively distributed production capacity at home and abroad. In China, China Gaoli headquarters and production plants mainly produce die-casting machines and semi-solid magnesium alloy injection molding machines. Wusha No.1 Factory mainly produces injection molding machines. Wusha No. 2 factory mainly provides production and manufacturing of all electric injection molding machines, high-speed packaging molding systems, rubber injection molding machines and molds. Wusha No. 3 factory is under construction. At present, Huoshen environmental protection project has been completed, and it is planned to build injection molding locomotive room and heavy machine workshop. The construction of the global innovation center has been basically completed. Suzhou Wujiang production plant mainly meets the manufacturing needs of two sector injection molding machine, Siasun Robot&Automation Co.Ltd(300024) automation system, additive manufacturing system and so on. Overseas, the Ohio production plant and North American technology center in the United States are mainly used for the production and manufacturing of HPM products. The plant in Gujarat, India mainly produces and sells injection molding machines. The new plant in Gujarat, India is under construction and is planned to produce injection molding machines. It is expected to be put into use in the second half of 2022.
Investment suggestions:
We expect that the net profit of the company from 2022 to 2024 will be RMB 533 / 578 / 634 million respectively, and the EPS will be RMB 1.14 / 1.23 / 1.35 / share respectively. At present, the corresponding P / E of the stock price is 9 / 9 / 8 times respectively, and the median p / E (excluding negative value) of the special equipment industry is 34 times. The company’s valuation has a certain room for recovery. The company’s short-term performance is under pressure due to the epidemic. In the future, with the mitigation of the epidemic, the demand of 3C and home appliance industries will return to normalization. The high prosperity new energy vehicles will become the main driving force of the company’s performance and promote the company’s long-term development. We maintain its “buy” rating.
Risk tips:
The risk of performance decline caused by the epidemic, the risk of bad debts of accounts receivable and the risk of inventory impairment.
