\u3000\u3 China Vanke Co.Ltd(000002) 025 Guizhou Space Appliance Co.Ltd(002025) )
Event: the company released the first quarterly report of 2021. In the first quarter of 2022, the company realized operating revenue (1.509 billion yuan, + 34.89%), net profit attributable to the parent company (159 million yuan, + 33.50%), net profit attributable to the parent company after deduction (155 million yuan, + 31.85%), and gross profit margin (35.68%, + 0.42pcts)
Key investment points:
The company speeds up the upgrading of production capacity to ensure downstream demand
In the first quarter of 2022, the company realized operating revenue (1.509 billion yuan, + 34.89%), net profit attributable to the parent company (159 million yuan, + 33.50%), net profit attributable to the parent company after deduction of non profit (155 million yuan, + 31.85%), and gross profit margin (35.68%, + 0.42pcts). During the reporting period, the company focused on its main business and carried out industrial development, continued to strengthen market expansion, and achieved rapid growth in orders and revenue. At the same time, the company plans and optimizes internal resource allocation, speeds up production capacity improvement, and better ensures the needs of the market and customers. In addition, the balance of the company's accounts receivable increased and the provision for bad debts increased accordingly, resulting in a rapid increase in credit impairment loss (506839 million yuan, + 44.51%) and a slight decline in net interest rate (12.15%, -0.01pcts).
The company has sufficient orders, actively prepared goods and increased R & D investment
The company's three fee expense rate (10.88%, - 0.21pcts) decreased slightly, including sales expense rate (2.46%, - 0.18pcts), management expense rate (8.60%, 0.06pcts) and financial expense rate (- 0.18%, + 0.04pcts). The company's R & D expenses (109 million, + 34.50%) continued to increase. During the reporting period, the company continued to increase investment in connector, relay, optical module, motor, intelligent storage and other technologies, which contributed to the sustainable development of the company and consolidated its leading position in the industry.
The company's inventory (1.135 billion yuan, + 37.27%) increased rapidly, and the superimposed contract liabilities (248 million yuan, + 523.55%) increased significantly, reflecting the company's sufficient orders: actively preparing goods. In order to match the downstream demand, the company accelerated the improvement of production capacity, and the fixed assets (RMB 1.001 billion, + 63.36%) increased rapidly.
Net cash flow from operating activities of the company (- 507 million yuan, - 53.35% down, mainly due to the expansion of the company's business scale and the increase in cash paid by the company to ensure the delivery of materials required to moderately speed up the production of orders. Related party transactions have increased significantly and the downstream prosperity has continued. The company is a listed company under the 10th Research Institute of China Aerospace Science and industry group, which is China's leading research and production unit of air defense missiles, aviation missiles and other products. According to the company's disclosure, the company expects In the related party transactions in 2022, the scale of goods sold to related parties was 1.600 billion yuan, significantly higher than the amount of the previous year (1.078 billion yuan), which reflected the high demand of the company's downstream military products, especially in the missile field.
Fixed increase and expansion of production to meet the high growth of the 14th five year plan
The company completed the non-public offering in September 2021, and the actual net capital of Muji was 1.42 billion yuan. In addition to 196 million yuan to acquire the operating assets of aerospace Linquan and 405 million yuan to supplement the working capital, the remaining capital was invested in four industrial construction projects: special connector and relay project, connector for new infrastructure, optical communication module and micro special motor. The construction period of the projects is three years. The company expects to achieve annual sales revenue of 516 million yuan, 1188 million yuan, 269 million yuan and 388 million yuan respectively after reaching the production capacity, and the output will be effectively increased.
Investment advice
The company is a leading enterprise in connector and relay, especially in special field in China. With the promotion of the company's Mu investment project, the production capacity will be effectively expanded, and the marginal cost caused by the scale effect will also increase the profit space of some products of the company. The company's revenue and profit are expected to enter a high-speed growth period during the 14th Five Year Plan period. We estimate that the net profit attributable to the parent company from 2022 to 2024 will be 623 million yuan, 763 million yuan and 931 million yuan respectively, and EPS will be 138 yuan, 168 yuan and 206 yuan respectively, corresponding to 42.2, 34.4 and 28.2 times of PE respectively. Based on the industry position of the company and the future development prospect of the products, we maintain the "buy" rating, with the target price of 69.60 yuan / share, corresponding to pe50.00 yuan from 2022 to 2024 respectively 4. 41.4, 33.8x
Risk tip: the price of raw materials fluctuates, and the promotion of Mu investment project is less than expected
