\u3000\u30 Beijing Telesound Electronics Co.Ltd(003004) 50 Wuxi Lead Intelligent Equipment Co.Ltd(300450) )
The company released the annual report of 2021 and the first quarterly report of 2022. In 2021, the company achieved an operating revenue of 10.037 billion yuan, a year-on-year increase of 71.32%, and the net profit attributable to the parent company was 1.585 billion yuan, a year-on-year increase of 106.47%; In the first quarter of 2022, the operating revenue was 2.926 billion yuan, a year-on-year increase of 142.41%; The net profit attributable to the parent company was 346 million yuan, a year-on-year increase of 72.50%.
Key points supporting rating
Performance maintained rapid growth. Benefiting from the high prosperity of the new energy vehicle industry chain, the company’s operating revenue and net profit attributable to the parent company have achieved rapid growth. In terms of products, lithium battery equipment achieved RMB 6.956 billion in 2021, with a year-on-year increase of 114.82%, and accounts receivable accounted for 69.30%, which was the main driving force for the growth of the company’s revenue; The revenue of intelligent logistics system was 1.056 billion yuan, with a year-on-year increase of 90.54%, accounting for 10.52%; The revenue of photovoltaic intelligent equipment business was 600 million yuan, a year-on-year decrease of 44.64%, accounting for 5.98%; The revenue of 3C intelligent equipment was 591 million yuan, a year-on-year increase of 5.25%, accounting for 5.89%.
It has obtained large orders from ACC and accelerated the pace of overseas business layout. The company made a forward-looking international layout and maintained good cooperative relations with Volkswagen, northvolt, ACC and other front-line manufacturers in Europe. In 2021, the company achieved an overseas revenue of 1.478 billion yuan, a year-on-year increase of 234.15%, and achieved a great breakthrough. On April 25, the company’s wechat official account announced that it had obtained lithium battery equipment and solutions from ACC’s 14gwh battery factory. ACC plans to increase its industrial capacity to at least 120gwh by 2030.
The operation of Zhuhai Titan has continued to improve. Affected by the product structure, its profitability has declined slightly recently. In 2021, the gross profit margin of the company’s sales was 34.05%, a year-on-year decrease of 0.27pct, the period expense rate was 16.89%, a year-on-year decrease of 1.50pct, benefiting from the decrease of the period expense rate, the net profit margin of the company’s sales was 15.79%, a year-on-year increase of 2.69pct. Among them, the operation of Titan power, a wholly-owned subsidiary of the company, continued to improve. In 2021, it achieved a revenue of 1.943 billion yuan, a net profit of 170 million yuan and a net interest rate of 8.75%. The comprehensive gross profit margin in the fourth quarter of 2021 and the first quarter of 2022 were 29.05% and 30.80% respectively, both of which declined, mainly due to the increase in the proportion of revenue of intelligent logistics system with low gross profit margin. In 2021, its gross profit margin was only 14.78%, far lower than 34.63% of lithium battery equipment. In the future, it is expected that with the release of the company’s production capacity and the reduction of outsourcing orders, the overall gross profit margin will pick up.
New orders are full, supporting performance growth, multi business flowering and building a platform company. In 2021, the amount of new orders signed by the company reached 18.7 billion yuan (excluding tax), with a year-on-year increase of 69.03%, a record high over the years, providing strong support for the sustained and rapid growth of the company’s future performance. At the same time, the company actively develops non lithium battery business sectors such as intelligent logistics, photovoltaic and 3C line, and is committed to building a new energy intelligent equipment platform company, with multi-point business flowering, so as to provide assistance for the sustainable growth of the company. In the long run, the platform layout will expand the growth space of the company, and the growth of various businesses will also smooth the cycle of income fluctuation.
Valuation
It is expected that the company will achieve revenue of RMB 16.192/22.88/28.323 billion and net profit of RMB 2.615/38.96/5.281 billion from 2022 to 2024. Considering the leading position of lithium battery equipment and large volume of multi business, the company will maintain the buy rating.
Main risks of rating
The production expansion of customers is less than expected; Product and technology update iteration is blocked; New business progress is not expected.
