\u3000\u30 Beijing Telesound Electronics Co.Ltd(003004) 50 Wuxi Lead Intelligent Equipment Co.Ltd(300450) )
Company events: the company released the annual report of 2021 and the first quarterly report of 2022. 1) Throughout the year: the company achieved revenue of 10.04 billion (YoY + 71.32%) in 2021; Net profit attributable to parent company: 1.58 billion (YoY + 106.47%); 2) 2021q4, realizing revenue of 4.09 billion, yoy + 139.22%; The net profit attributable to the parent company is 580 million; 3) 2022q1: revenue of 2.93 billion, yoy + 142.41%; The net profit attributable to the parent company was 350 million, yoy + 72.5%.
In 2021, the annual revenue reached 10.037 billion yuan, breaking 10 billion yuan, the highest level in history. In terms of products, the company’s lithium battery equipment / photovoltaic equipment / 3C intelligent equipment / intelligent logistics system achieved revenue of 69.56/6.00/5911056 billion yuan respectively, with a year-on-year increase of + 114.82% / – 44.64% / + 5.25% / + 90.54%, and the proportion of revenue was 69% / 6% / 6% / 11%, of which the proportion of lithium battery equipment increased significantly, about 14%. In addition, the export revenue reached 1.478 billion yuan, a year-on-year increase of + 234%, accounting for 14.73% of the annual revenue, with a year-on-year increase of 7.18 PCT. Both the scale of revenue and the proportion of revenue increased significantly.
Due to the increase in the proportion of intelligent logistics sector, the company’s gross profit margins in 2021q4 and 2022q1 declined to varying degrees. 1) 2021: in terms of gross profit margin, by product, the lithium battery intelligent manufacturing equipment and intelligent logistics system achieved gross profit margins of 34.63% and 14.78% respectively, with a year-on-year increase of + 1.09pct / – 7.86pct respectively. In the context of the overall rise in the price of raw materials, the gross profit margin of the lithium battery equipment sector remained basically stable, but the proportion of outsourced processing of the intelligent logistics department increased, the gross profit margin declined, and also had a certain impact on the comprehensive gross profit margin. The company’s annual net profit attributable to the parent company was 15.79%, with a year-on-year increase of 2.7pct, which mainly benefited from the reduction of the expense rate during the period: the expense rate during 2021 was about 16.89%, with a year-on-year increase of -1.5pct. 2) In 2022q1, the company’s gross profit margin was about 30.8%, down 9.41pct year-on-year and 3.26pct month on month. 3) In 2021, Titan achieved a revenue of 1.943 billion yuan, accounting for 19% of the company’s total revenue; The net interest rate in 2021 is about 8.75%, turning losses into profits.
The scale of newly signed orders reached a new high, and the level of inventory and contract liabilities increased significantly compared with the beginning of the year. By the end of 2021, the company’s inventory was about 7.776 billion yuan, an increase of 171% over the beginning of the year; The company’s contractual liabilities were about 3.863 billion yuan, an increase of 103% over the beginning of the year. Mainly due to the rapid growth of the company’s orders, inventories and contract liabilities maintained a relatively high growth: in 2021, the company signed 18.7 billion new contracts (excluding tax), a record high over the years, creating favorable conditions for the company’s future growth. Not only affected by the increase of newly signed orders, but also due to the tight supply of raw materials since this year, the company has appropriately adjusted the procurement mode. Therefore, the company’s operating cash outflow is about 1.211 billion yuan. It is expected that with the continuous promotion of equipment delivery, the annual operating cash flow will be effectively improved.
Investment suggestion: in the context of the rapid expansion of global battery capacity, leading lithium battery equipment enterprises give priority to benefit. We expect the company to achieve a revenue of RMB 15.090/19.255/23.174 billion and a net profit attributable to the parent company of RMB 2.689/38.43/4.693 billion from 2022 to 2024. The current share price corresponds to PE of 24 times, 17 times and 14 times respectively, maintaining the “recommended” rating.
Risk tip: the downstream demand is less than expected, and the epidemic situation in China is repeated.
