\u3000\u30 Xuchang Ketop Testing Research Institute Co.Ltd(003008) 37 Zhe Kuang Heavy Industry Co.Ltd(300837) )
The company issued the annual report of 2021 and the first quarterly report of 2022. In 2021, the company achieved a revenue of 573 million yuan (+ 23.86%), a net profit attributable to the parent company of 158 million yuan (+ 30.10%), and a net profit not attributable to the parent company of 151 million yuan (+ 31.72%). In the first quarter of 2022, the company achieved a revenue of 166 million yuan (+ 33.09%), a net profit attributable to the parent company of 46 million yuan (+ 27.73%), and a net profit not attributable to the parent company of 47 million yuan (+ 30.96%). Meanwhile, the company issued a plan for issuing convertible bonds with a total amount of no more than 320 million yuan to be raised: 250 million yuan to invest in the construction of demonstration base for manufacturing waste new energy battery recycling equipment, and 70 million yuan to invest in the construction of production base for construction waste resource recycling equipment (phase I).
Steady growth in performance and abundant orders on hand. In 2021, the company’s main business income was 571 million yuan (+ 23.78%), maintaining a steady growth. Among them, the sales volume of crushing equipment is 240 (+ 6.19%) and the output is 320 (+ 6.31%); The sales volume of screening equipment is 793 (+ 43.92%) and the output is 939 (+ 14.09%). In terms of products, the sales revenue of complete set production line is 342 million yuan (+ 15.35%), and the sales revenue of single equipment is 177 million yuan (+ 41.83%). The company generally collects 30% of the total contract amount as advance payment after signing the contract with Chinese customers. By the end of 2021, the company’s contract liabilities were 169 million yuan (+ 18.20%). Thanks to the company’s outstanding brand advantages, technical advantages and product advantages, the company’s performance maintained steady growth in 2021.
The cost is reasonable and controllable, and the gross profit margin remains basically stable. In 2021, the company’s main business cost of crushing and screening was 322 million yuan (+ 23.41%), and the gross profit margin was 43.56% (+ 0.17pct); In terms of products, the operating cost of the complete production line is 197 million yuan (+ 17.34%), the gross profit margin is 42.51% (- 0.97pct), the operating cost of single equipment is 97 million yuan (+ 43.73%), and the gross profit margin is 45.21% (- 0.73pct). In the context of the sharp rise in the price of raw materials such as steel, the company continued to optimize the product structure, conduct price transmission, fully control the cost, keep the gross profit margin basically stable, and reflect the strong bargaining power of the company. In 2021, the company’s sales expenses were 30 million yuan (+ 34.26%), management expenses were 27 million yuan (+ 14.46%), and R & D expenses were 18 million yuan (+ 20.97%). During this period, the expenses showed an upward trend; The increase in sales expenses was mainly due to the expansion of the company’s sales scale, in which the after-sales service fee increased significantly; The increase in R & D expenses is mainly due to the company’s increasing R & D investment in intelligent control and R & D investment in crushing and screening equipment for new application scenarios.
It is proposed to issue convertible bonds, improve the layout of subdivided fields, and expand production capacity to help the company grow. On the evening of April 24, 2022, the company announced that it planned to issue convertible bonds to the public, and the total amount of funds raised would not exceed 320 million yuan. Among them, 250 million yuan was invested in the construction project of waste new energy battery recycling equipment manufacturing demonstration base (with a total investment of 406 million yuan), and 70 million yuan was invested in the construction project of construction waste resource recycling equipment production base (phase I) (with a total investment of 154 million yuan). After the completion of the waste new energy battery project, the annual processing capacity of the company’s waste new energy battery and lithium battery production waste will reach 21000 tons, and the annual output of 10 sets of new energy battery crushing and sorting equipment will be realized. After the completion of the construction waste project, it will form an annual production capacity of 100 crushing and screening equipment that can be used for the recycling of construction waste, and the construction period is 18 months. In addition, by the end of 2021, 75.85% of the projects invested by the initial public offering funds have been completed, 61.66% of the technology center construction projects have been completed, and some of them have been put into operation.
Investment suggestion: as a leading enterprise of medium and high-end large mining machinery and equipment in China, the company has obvious advantages in products, brands and technology, and excellent customer service ability; The company actively distributes metal mines, waste batteries, construction waste and other fields; The continuous expansion of production capacity drives the company’s revenue level and realizes cost reduction and efficiency increase; The company’s product structure has been continuously optimized, and the proportion of high-end products and high gross margin products has increased; In the future, the market share of the company is expected to be further improved and the company is optimistic about its future growth. It is estimated that from 2022 to 2024, the company’s revenue will be 714 million yuan, 887 million yuan and 1.104 billion yuan respectively, and the net profit attributable to the parent company will be 216 million yuan, 264 million yuan and 322 million yuan respectively, with corresponding PE of 15.67, 12.85 and 10.52 times respectively, maintaining the “buy” rating.
Risk warning: the cost of raw materials and other materials has increased more than expected; The production progress of production capacity is less than expected; Downstream demand is lower than expected
