\u3000\u3 Jiangsu Eastern Shenghong Co.Ltd(000301) 029 Dongguan Yiheda Automation Co.Ltd(301029) )
Event overview
The company issued the annual report of 2021 and the first quarterly report of 2022. In 2021, the revenue will be 1.803 billion yuan / yoy + 49.03%, the net profit attributable to the parent company will be 401 million yuan / yoy + 47.65%, and the net profit not attributable to the parent company will be deducted by 393 million yuan / yoy + 51.01%. In the first quarter of 2022, the revenue was 487 million yuan / yoy + 52.60%, the net profit attributable to the parent was 101 million yuan / yoy + 63.72%, and the net profit not attributable to the parent was 97 million yuan / yoy + 59.41%.
Analysis and judgment:
21q4 performance is under pressure, and 22q1 performance is bright. The company’s revenue and net profit attributable to the parent company increased significantly in the past 21 years, benefiting from the continuous maintenance of a high outlook and strong competitiveness of downstream industries such as lithium battery, 3C, automobile, photovoltaic, Siasun Robot&Automation Co.Ltd(300024) and so on. 21q4’s revenue and net profit attributable to the parent company were 474 million yuan and 94 million yuan respectively, with a year-on-year increase of 24.57% and 9.71% respectively. The growth rate decreased, which was mainly affected by the delay of revenue recognition, year-end bonus and income tax provision. 22q1 company’s revenue and net profit returned to the high growth track, with a year-on-year increase of 52.60% and 63.72% respectively. From the perspective of profitability, it is mainly affected by the rise of raw material prices. The gross profit margins of 21q4 and 22q1 are 34.82% and 39.71% respectively. Although they are lower than the gross profit margin of more than 40% in the first three quarters of 21 years, 22q1 has improved month on month (+ 4.89pct); Meanwhile, the net interest rate of 22q1 company reached 20.72%, which was lower than that of 21q2 and 21q3, but it improved month on month (+ 0.9pct) and year-on-year (+ 1.41pct).
Online sales continued to develop, and the number of customers maintained growth. In 2021, the company served more than 28000 customers, with a year-on-year increase of about 24%, involving automation parts application scenarios in many industries, such as lithium battery (about 26%), 3C and mobile phone (about 26%), automobile (about 10%), photovoltaic (about 5%), Siasun Robot&Automation Co.Ltd(300024) (about 4.5%), and the total number of shipments reached 3.3 million, with a year-on-year increase of about 43%. From 2019 to 2021, the proportion of the company’s online customers was 53% / 60% / 78% and the proportion of online sales was 13% / 17% / 28% respectively. Whether in terms of the number of customers or sales, the proportion of online sales increased year by year. In 2021, customers with more than two sales records accounted for about 73%, and the sales contribution exceeded 99%; Among them, customers who placed orders more than 10 times accounted for about 26%, contributing about 94% of sales, indicating that the company has strong customer stickiness.
Strengthen regional layout and improve service capacity. In 2021, 52.53% of the company’s sales revenue came from South China and 35.71% from East China. The revenue of North China, central China and southwest China accounted for a relatively low proportion, with obvious regional concentration. In October 2021, the company established a subsidiary company of “Shandong Dongguan Yiheda Automation Co.Ltd(301029) Automation Co., Ltd.” to better serve customers in the north, reduce operating costs and enhance the brand awareness of the company; In January 2022, subsidiaries of “Guangdong Dongguan Yiheda Automation Co.Ltd(301029) Industrial Products Supply Chain Management Co., Ltd.” and “Hubei Dongguan Yiheda Automation Co.Ltd(301029) Automation Technology Co., Ltd.” were successively established to provide more services to customers in various industries and regions. At present, the company has established 12 sales engineer teams and 19 offline service teams in sales offices, which is conducive to strengthening the service capacity of various regions and helping the balanced development of various regions.
FA automated one-stop supply builds high barriers, and the digital platform enables the company to grow. The company makes in-depth development for different application scenarios in the field of non-standard automation, standardizes the original non-standard products, serializes and modularizes the existing standard models according to the customer application scenarios, and adopts the combination of self-made & OEM supply & intensive procurement to realize the agile supply of products and improve the procurement efficiency of customers. In 2021, the number of SKUs of the company increased from 680000 in 2019 to 1.1 million, and the competitive barrier continued to consolidate. At the same time, the company continues to improve the information and digital level, enable manufacturing, support the in-depth development of various businesses, and is expected to further improve the profitability of the company.
Investment suggestion: keep the profit forecast for 20222023 unchanged and add the profit forecast for 2024. We predict that the revenue from 2022 to 2024 will be 2.433 billion yuan, 3.396 billion yuan and 4.445 billion yuan respectively, and the net profit attributable to the parent company will be 568 million yuan, 804 million yuan and 1.049 billion yuan respectively, corresponding to EPS of 142 million yuan, 201 million yuan and 2.62 yuan respectively, corresponding to the closing price of 51.02 yuan / share on April 26, 2022, and PE of 36, 25 and 19 times respectively. We have not given a rating yet.
Risk tip: the prosperity of downstream industries is lower than expected, the proportion of online customers’ procurement is lower than expected, and the market competition is intensified.
