\u3000\u3 China Vanke Co.Ltd(000002) 960 Jade Bird Fire Co.Ltd(002960) )
Event: in the first quarter of 2021, the company achieved a revenue of 746 million yuan (+ 64.71%), a net profit attributable to the parent company of 67 million yuan (+ 30.64%), and a net profit not attributable to the parent company of 63 million yuan (+ 39.4%).
Comments:
Revenue maintained high growth, and the “one-stop” product matrix formed scale advantages: the company’s revenue growth rate in the single quarter of 21q1-22q1 was 166.8%, 39.92%, 41.3%, 52.2% and 64.71% respectively. After deducting the influence of the low base of 20q1, the company’s revenue showed a trend of quarterly acceleration. In terms of business, the general fire alarm business grew steadily, among which the bluebird brand and overseas business were relatively stable, and the growth rate of long-term brands exceeded 40%; Emergency lighting and evacuation business continued its high growth last year, with Q1 revenue increasing by more than 200% year-on-year. Under the catalysis of policies, the industry ushered in a period of rapid development. The company’s multi brand product matrix will fully benefit from the dividends brought by the high growth of the industry; The pan industrial fire fighting business has been actively and orderly promoted, with a delivery of more than 10 million yuan. It has 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. With the accumulation of project experience and the reserve of R & D advantages, it is expected to seize more market share in some subdivided fields in the future; The company’s gas fire extinguishing and gas detection business maintained steady and rapid growth. On the whole, the advantages of the company in providing one-stop products and services have gradually emerged, and the revenue scale has ushered in a period of rapid growth.
The gross profit margin decreased slightly year-on-year, and the cost control continued to be optimized during the period: the gross profit margin of the company in 2022q1 was 39.19%, down about 3.5 PCT year-on-year, on the one hand, it was due to the rise in the price of raw materials in some gas businesses; On the other hand, due to the adjustment of the company’s product structure, the proportion of products with relatively low gross profit margin increased; From the perspective of period expenses, the overall expense rate of Q1 company in 2022 was 28.9%, with a year-on-year decrease of 2.64 PCT, of which the management expense rate decreased by 1.3 PCT, which is expected to be the gradual improvement of the integration of the company’s acquisition targets and the gradual decline of the expense rate; The financial expense ratio decreased by about 1 PCT, and the book capital of the company was sufficient.
Q1 operating net cash flow outflow, asset liability ratio remained low. In the first quarter of 2022, the company’s operating net cash flow was -354 million yuan, a year-on-year decrease of 21.65%, mainly due to the company’s arrangement of preparing goods in advance and locking long orders in response to the expansion of order scale and changes in the external environment. The prepayment + inventory increased by about 361 million yuan year-on-year. If this item is added back, the company’s operating net cash flow actually improved, and the company’s Q1 employee compensation increased by about 80 million yuan; In the first quarter, the company’s revenue to cash ratio was about 0.82x, down 2 PCT year-on-year. Accounts receivable and notes receivable increased by 23.68% year-on-year, far lower than the growth rate of revenue. The company strengthened the assessment of accounts receivable, and the collection was in good condition. At the end of the reporting period, the company’s monetary cash was 1.02 billion yuan, and the asset liability ratio was 30.73%, down 3.8 PCT month on month. The company had little cash pressure and continued to optimize its debt structure, which was conducive to the steady progress of the company’s businesses. Release the fixed growth plan, capacity expansion + product upgrading to ensure long-term growth. Recently, the company issued a fixed increase plan, which is planned to be non fixed
The number of publicly issued shares shall not exceed 69787122 (i.e. no more than 20% of the total share capital of the company before the issuance), and the total amount of fund-raising shall not exceed 2.206 billion yuan, which is used for Jade Bird Fire Co.Ltd(002960) Safety Industrial Park (Anhui), Mianyang industrial base upgrading, intelligent fire fighting platform construction, overseas R & D testing center and supplementary working capital; On the one hand, the fixed increase will help the company’s capacity expansion (expansion of Anhui Ma’anshan and Sichuan Mianyang companies) and provide medium and long-term growth momentum; On the other hand, establish overseas R & D and testing centers to improve R & D strength, realize product iterative upgrading and build core competitiveness.
Investment suggestion: we maintain the company’s performance of 713 million yuan, 958 million yuan and 1.257 billion yuan respectively from 2022 to 2024, with corresponding EPS of 204 million yuan, 2.75 million yuan and 3.6 yuan respectively, and corresponding PE valuation of 15.2, 11.3 and 8.6 times respectively; Maintain the “buy” rating and target price range of 57.12-61.2 yuan.
Risk warning: policy promotion is not as expected; The industry competition intensifies and the concentration is lower than expected; Emergency evacuation and industrial fire fighting expansion are lower than expected; Energy storage and fire fighting were not advanced as expected
