\u3000\u3 China Vanke Co.Ltd(000002) 484 Nantong Jianghai Capacitor Co.Ltd(002484) )
Event overview
On April 26, the company released the first quarterly report of 2022. In Q1 of 2022, the operating revenue was 980 million yuan, a year-on-year increase of 31%, the net profit attributable to the parent was 120 million yuan, a year-on-year increase of 42%, deducting the net profit not attributable to the parent was 110 million yuan, a year-on-year increase of 48%, the gross profit margin in 2022q1 was 25.09%, a year-on-year decrease of 2.5pct, the net profit margin was 11.95%, and a year-on-year increase of 0.67pct.
2022q1 has a bright performance, and the profitability of the company has been repaired
Benefiting from the high popularity of the industry and strong demand for applications in new energy, electric vehicles and industrial automation markets, the company’s revenue in 2022q1 was 980 million yuan, a year-on-year increase of 31%; The gross profit margin of the company in 2022q1 was 25.09%. In 2021, the gross profit margin of the company was under pressure due to the price of raw materials, power restriction and other factors. At present, the gross profit margin of the company has shown a repair trend, with a month on month increase of 2.65pct. The company further strengthened cost control. In 2022q1, the management expense ratio / sales expense ratio was 3.8% / 2% respectively, a year-on-year decrease of 1.2pct/1.3pct, and the net interest rate was 11.95%, an increase of 0.67pct year-on-year.
In the first quarter, the payment collection was good, and the operation capacity was further enhanced
The cash received from selling goods and providing labor services in 2022q1 was 750 million yuan, with a cash to cash ratio of 76%, a year-on-year increase of 4pct. The company’s accounts receivable turnover days in 2022q1 were 100.7 days, a year-on-year decrease of 14.2 days, the collection capacity was improved, and the inventory turnover days were 109.7 days, a year-on-year decrease of 6.6 days. The company’s operation quality was high and its operation capacity was further enhanced.
Continue to be optimistic about the company’s three major businesses and have sufficient growth momentum in the future
1) aluminum electrolytic capacitor: the downstream photovoltaic landscape is high and the customer advantage is obvious. Seven of the top 10 photovoltaic inverter manufacturers in the world have become company users. The cost advantage of aluminum electrolytic capacitor in China is obvious and the domestic substitution trend is obvious. At present, the pressure on the cost side has been alleviated to some extent, and the gross profit margin is expected to be repaired in 2022; 2) Thin film capacitors: the company has started mass delivery in the field of electric vehicles and military industry, and the production line of box thin film capacitors for distributed photovoltaic has also been mass produced. The company has won many projects from automobile brands and electric driver manufacturers, which has sufficient momentum for future development; 3) Super capacitor: it is mainly used in smart three meters, automobile etc, wind power pitch, smart grid transformation, rail transit and other fields. Benefiting from the development of new energy, the super capacitor business has a strong growth momentum.
Investment advice
We expect the net profit attributable to the parent company in 2022, 2023 and 2024 to be RMB 620 million, RMB 770 million and RMB 960 million respectively. According to the closing price of 2022 / 4 / 26, PE is 25 / 21 / 16 times, maintaining the “buy” rating.
Risk tips
The newly-built capacity is less than expected, the downstream demand is less than expected, the market development is less than expected, and the risk of peripheral environment fluctuation.
