\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 100 Jiangsu Hengli Hydraulic Co.Ltd(601100) )
Event: on April 25, the company released the annual report of 2021 and the first quarterly report of 2022. In 2021, the company achieved a revenue of 9.309 billion yuan, a year-on-year increase of 18.51%; The net profit attributable to the parent company was 2.694 billion yuan, a year-on-year increase of 19.51%; The net profit attributable to the parent company after non deduction was 2.558 billion yuan, a year-on-year increase of 16.72%. The company plans to pay a cash dividend of 7.30 yuan for every 10 shares. In the first quarter of 2022, the company achieved a revenue of 2.200 billion yuan, a year-on-year decrease of 22.97%; The net profit attributable to the parent company was 528 million yuan, a year-on-year decrease of 32.56%.
In the first quarter, the operating performance declined, the R & D investment continued to increase, and the operating quality remained stable.
(1) in 2021, the company's revenue increased by 18.51% year-on-year, the net profit attributable to the parent increased by 19.51% year-on-year, and the net profit attributable to the parent increased by 16.72% year-on-year after deduction. In the fourth quarter, the company's revenue decreased by 16.00% year-on-year, and the net profit attributable to the parent decreased by 9.46% year-on-year. In the first quarter of 2022, the company's revenue decreased by 22.97% year-on-year, and the net profit attributable to the parent decreased by 32.56% year-on-year. Affected by the continuous decline of downstream excavator sales, the company's single quarter revenue and net profit attributable to the parent company have declined since the fourth quarter of 2021.
(2) in 2021, the company's gross profit margin was 44.01%, a year-on-year decrease of 0.09 percentage points; The net interest rate was 28.99%, with a year-on-year increase of 0.20 percentage points; The weighted average return on net assets was 32.83%, a year-on-year decrease of 1.90 percentage points; The sales expense rate / management expense rate / financial expense rate were 1.20% / 2.44% / 0.96% respectively, with a year-on-year decrease of 0.16/0.11/0.97 percentage points respectively. In 2021, against the background of the sharp rise in the prices of raw materials such as steel, the gross profit margin of the company was basically the same year-on-year, the net profit margin continued to improve, and the rates of sales, management and financial expenses continued to be optimized. In the first quarter of 2022, the company's gross profit margin was 37.85%, a year-on-year decrease of 3.19 percentage points; The net interest rate was 24.04, a year-on-year decrease of 3.41 percentage points; Profitability weakened in the first quarter.
(3) in 2021, the company's accounts receivable turnover days were 40.14 days, an increase of 2.54 days year-on-year; The inventory turnover days were 97.52 days, an increase of 6.75 days year-on-year. In 2021, the company's net cash flow from operating activities was 2.796 billion yuan, a year-on-year increase of 41.15%. The operating capacity of the company is still strong, the net cash flow from operating activities has reached the best level in the same period in history, and the operating quality is solid and stable.
(4) in 2021, the company invested 636 million yuan in R & D, a year-on-year increase of 106%; The R & D expense rate was 6.83%, an increase of 2.9 percentage points year-on-year. The company's R & D investment continues to increase, the technical products are comprehensively upgraded, and the competitive advantage is gradually enhanced.
The business of non-standard oil cylinder and pump valve continues to increase in volume, focusing on the anti cycle attribute.
(1) hydraulic cylinder: in 2021, the company's hydraulic cylinder business revenue was 5.187 billion yuan, a year-on-year increase of 15.34%; The gross profit margin was 44.21%, a year-on-year decrease of 2.59 percentage points. In 2021, the company sold 855300 special oil cylinders for excavators, with a year-on-year increase of 21.13%; 168400 non-standard oil cylinders were sold, with a year-on-year increase of 36.23%. Among them, the non-standard oil cylinders of hoisting series and new energy showed a bright performance, and the annual revenue increased by 57.94% and 88.84% respectively year-on-year. In the field of marine engineering, the large cylinder diameter, large piston rod and variable amplitude hydraulic cylinder of pile frame of ultra long stroke pile driving ship were paid. The expansion of the company in the non excavation field will gradually smooth the impact of the cyclical fluctuation of the excavator business.
(2) hydraulic pump and valve: in 2021, the company's hydraulic pump and valve business revenue was 3.236 billion yuan, with a year-on-year increase of 38.37%; The gross profit margin was 51.98%, a year-on-year decrease of 0.29 percentage points. The subsidiary hydraulic technology continues to consolidate and improve the share of the main control pump valve and motor reducer assembly in the excavator industry, and the market share from micro excavation to large excavation has been improved to varying degrees; In the field of non excavation construction machinery, the aerial work vehicle industry and China's exports are significantly large; In the field of non construction machinery, v30g series industrial pumps suitable for marine engineering, shield, test bench and other fields, as well as proportional solenoid valves applied in many fields, have also been successfully mass produced with their excellent performance.
(3) general hydraulic field: the company actively carries out the R & D and trial production of non digging products, and the R & D of linear drive products is in progress simultaneously with the factory construction. In 2021, the company also added two new business divisions such as cycloid motor and compact hydraulic, and successfully developed cycloid motor and brake products, balance valve series products, more than 100 kinds of electromagnetic cartridge valve products, and valve groups used in many industries. The company's product line continues to be rich. The company is expected to go through the cycle of traditional construction machinery and become a leader in the field of general hydraulic.
Maintain the "overweight" rating. The company's non-standard oil cylinder and pump valve business continues to be large-scale, and the product system continues to be improved. It is expected to become a leader in the field of anti cycle general hydraulic. However, due to the cyclical fluctuations of the downstream excavator industry, the company's Excavator cylinder business is still under pressure. We have lowered the company's profit forecast. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 2.571 billion yuan, 3.073 billion yuan and 3.743 billion yuan respectively (the value before 2022 and 2023 will be 2.957 billion yuan and 3.322 billion yuan respectively), and the corresponding PE will be 21.45, 17.95 and 14.73 times respectively. Maintain the "overweight" rating.
Risk tip: the downward pressure on the macro economy is increasing, the price of raw materials fluctuates sharply, the construction machinery industry fluctuates periodically, the market competition intensifies, and the overseas expansion is less than expected.
