\u3000\u3 China Vanke Co.Ltd(000002) 270 Huaming Power Equipment Co.Ltd(002270) )
Event: the first quarterly report of 2022 and the annual report of 2021 were released. In 2022q1, the company realized an operating revenue of 321 million yuan, an increase of 2.73% and a net profit attributable to the parent company of 66 million yuan, an increase of 54.11%. The company achieved a revenue of 1.532 billion yuan in 2021, an increase of 12.00% at the same time; The net profit attributable to the parent company was 417 million yuan, an increase of 45.13% at the same time; Deduct 180 million yuan of net profit not attributable to the parent company, an increase of 21.12% at the same time; Among them, the revenue of power equipment was 1.177 billion yuan, an increase of 17.71% and the gross profit margin was 57.21%; The revenue of power engineering was 153 million yuan, an increase of 15.57% at the same time; The revenue of CNC equipment is 156 million yuan.
Power equipment enterprises are “invisible champions” with strong profitability by arranging product maintenance services. 1) Strong profitability of tap changer business: the company is a leading enterprise of transformer tap changer in China, with the shipment volume ranking first in China and second in the world. China has an absolute leading position in the market below 500kV. 2) Cost control: the financial expenses have been continuously improved. During the reporting period, the company repaid 700 million yuan of corporate bonds and reduced interest bearing liabilities, which reduced the financial expenses of the company by 5.56% year-on-year. 3) Advantages of technology research and development: the company’s first supporting 1000 kV UHV Transformer non excitation tap changer has been delivered, and the vacuum on load tap changer of ± 800 kV UHV converter transformer has passed the national technical appraisal, helping the company to realize the localization of EHV and UHV tap changer in the future. 4) Promote the maintenance, operation and maintenance business of tap changer products: Shanghai Huaming and Changzheng electric have delivered more than 160000 products in China since 2000. At the same time, nearly 10000 products are newly put into operation every year, and there is a large demand for after-sales operation and maintenance of products. The company has carried out maintenance service business through on-site and remote technical support mode, and its performance has increased significantly. During the reporting period, the long-term power equipment maintenance and service business realized an operating revenue of 90 million yuan, with a year-on-year increase of 72.46%.
Power engineering helps “double carbon” and the steady operation of CNC machine tools. During the “14th five year plan” period, the “double carbon” target transformation mechanism was gradually implemented, and the power grid investment and related investment maintained a high growth, driving the high growth of power engineering demand. The company steadily promoted related businesses in combination with cash flow and income expectations. In terms of CNC machine tools, the company has an annual production capacity of 1000 special CNC machine tools (sets), and has participated in the designation of a number of national standards. We expect the company to achieve revenue of RMB 1.687/17.91/1.889 billion and net profit attributable to the parent company of RMB 283/3.22/356 million from 2022 to 2024, corresponding to pe1.8 billion 07 / 15.88/14.37, rated “overweight”.
Risk warning: the promotion of UHV and UHV products is not as expected; During the “14th five year plan” period, the demand for power projects was lower than expected; The market competition pattern of CNC machine tools has deteriorated.
