\u3000\u30 Zhongyan Technology Co.Ltd(003001) 24 Shenzhen Inovance Technology Co.Ltd(300124) )
Conclusions and suggestions:
Event: the company released its annual report for 2021, and achieved a revenue of 17.943 billion yuan in 2021, a year-on-year increase of 55.87%; The net profit attributable to the parent company was 3.573 billion yuan, a year-on-year increase of 70.15%, and the net profit after deducting non-profit was 2.918 billion yuan, a year-on-year increase of 52.55%. Quarter by quarter, Q4 achieved a revenue of 4.595 billion yuan, a year-on-year increase of 34.65%; The net profit attributable to the parent company was 1.082 billion yuan, a year-on-year increase of 79.7%; The net profit after deducting non recurring items was 510 million yuan, an increase of 3.1% year-on-year, mainly due to the non recurring profit and loss of about 580 million, which was due to the rapid growth of the fair value of overseas funds and derivative financial instruments year-on-year.
At the same time, the company announced the results of the first quarter of 2022, and realized a revenue of 4.778 billion yuan in 22q1, a year-on-year increase of 40.01%; The net profit attributable to the parent company was 717 million yuan, a year-on-year increase of 11%, and the net profit after deduction was 698 million yuan, a year-on-year increase of 11.62%, which was located in the performance forecast center.
Strong growth in all business segments: in the first half of 2021, the overall industrial automation market had strong downstream demand, with an industry growth of 26%. In the second half of the year, affected by the macro economy, the industry growth slowed down, but the annual industry growth rate was still as high as 17%. Secondly, the output of new energy vehicles and industrial Siasun Robot&Automation Co.Ltd(300024) shipments maintained high growth, with year-on-year growth of 158.6% and 49.5% respectively, driving the rapid growth of the company’s performance. In terms of business, 1) the revenue of general automation business was about 8.982 billion yuan, a year-on-year increase of 65.16%. Among them, the sales revenue of frequency converter is 3.145 billion yuan, the sales revenue of servo system is 3.769 billion yuan, the sales revenue of PLC & HMI is 703 million yuan, and the sales revenue of electro-hydraulic system is 765 million yuan (including EasTone); 2) The revenue of elevator electrical business was 4.967 billion yuan, a year-on-year increase of about 14.35%; 3) Due to the large volume of new forces in car making, the orders of electric drive, electronic control, power supply and other products of the company achieved explosive growth. The revenue of new energy vehicle business was 2.992 billion yuan, a year-on-year increase of 171%, of which the sales revenue of new energy passenger vehicle business was 2.3 billion yuan, a year-on-year increase of 250%; 4) Focusing on 3C manufacturing and new energy market, the company focuses on expanding 3C, lithium battery, silicon crystal and other industries. Orders have increased rapidly. The industrial Siasun Robot&Automation Co.Ltd(300024) business achieved a sales revenue of 362 million yuan, a year-on-year increase of about 110.53%, and achieved profit for the first time; 5) The revenue of rail transit business was 526 million yuan, a year-on-year increase of about 49%.
The price of raw materials affects the gross profit margin, and the cost control is good: the company’s comprehensive gross profit margin fell by 3.14pct to 35.82% year-on-year, which is mainly due to the rise of materials, procurement and other costs caused by the shortage of chips and the rise of commodity prices, as well as the change of the company’s product structure (the proportion of new energy vehicles increased). Specifically, in addition to the industrial Siasun Robot&Automation Co.Ltd(300024) gross profit margin increased by 13.34pct to 46.09% year-on-year, the gross profit margin of general automation decreased by 2.24% to 44.98%, the gross profit margin of elevator electric decreased by 3.37pct to 28.32% year-on-year, and the gross profit margin of new energy vehicles and rail transit decreased by 1.12pct to 21.91% year-on-year. In terms of expenses, the comprehensive expense rate decreased by 1.32 PCT to 19.7%, and the sales and management expense rate decreased by 1.72 PCT and 0.21 PCT year-on-year. In order to enhance the company’s core competitiveness, the company’s R & D expense rate increased by 0.5pct to 9.39% year-on-year.
The gross profit margin of 22q1 is under pressure, and the price increase is expected to improve the profit: the revenue of 22q1 increased by 40% year-on-year, and the net profit increased by 11% year-on-year. The growth rate of net profit is lower than that of the revenue side, mainly due to the sharp rise in the prices of bulk commodities, chips and other raw materials. Secondly, the proportion of sales of new energy vehicles with low gross profit increased, As well as the strategic business investment expenses, the year-on-year growth rate is high (control layer software, digitization, energy management, new energy vehicle electric drive & power supply, etc.). On April 3, the company’s official website issued a notice of price increase, which plans to raise the price of general automation and industrial Siasun Robot&Automation Co.Ltd(300024) products by 5% – 8% on April 15. After the price increase, the profitability may be repaired.
Invest in the construction of new energy vehicle core parts project to improve the competitiveness of the company: Changzhou new energy vehicle project (phase I) will be delivered in May 2022, and its production capacity will reach full capacity in 2022. Facing the demand of rapid growth of orders for products related to new energy vehicle business and improving the comprehensive competitiveness of products related to new energy vehicles, the company plans to build new energy vehicle core parts project (phase II), Including production workshops and supporting facilities involved in new energy vehicle electric drive system, motor, motor controller, power supply system and other products, with a total planned investment of no more than 3 billion yuan.
Profit forecast: as a leading enterprise in China’s industrial control field, the company gives full play to the advantages of platform leading, continues to develop in the business fields of general automation and new energy vehicles, and the performance is still expected. Considering the rebound of China’s epidemic and the rising pressure of raw material costs, the company’s profit forecast is lowered. It is estimated that the company’s net profit in 22 and 23 years will be 3.88 billion yuan and 4.85 billion yuan (the original value is 4.1 billion yuan and 5.2 billion yuan), yoy + 8.5%, + 25%, EPS is 1.47 yuan and 1.84 yuan, and the current share price corresponds to 32 times and 26 times PE, maintaining the investment proposal of “interval operation”.
Risk warning: the demand for industrial control, elevators and new energy vehicles is less than expected; Macroeconomic growth slowed down; Intensified market competition, etc
