\u3000\u3 Guocheng Mining Co.Ltd(000688) 187 Zhuzhou Crrc Times Electric Co.Ltd(688187) )
On April 26, Zhuzhou Crrc Times Electric Co.Ltd(688187) released the first quarterly report of 2022. Q1 company achieved a revenue of 2.546 billion yuan, a year-on-year increase of 22.29%, and a net profit attributable to the parent company of 341 million yuan, a year-on-year increase of 31.01%.
Q1's performance greatly exceeded expectations, and the proportion of Beijing Emerging Eastern Aviation Equipment Co.Ltd(002933) business revenue increased to 28.72%. Q1 company achieved revenue of 2.546 billion yuan, a year-on-year increase of 22.29%, and net profit attributable to parent company of 341 million yuan, a year-on-year increase of 31.01%. The gross profit margin reached 35.75%, up 7.35pct month on month, greatly exceeding market expectations. The higher than expected performance was mainly due to the positive year-on-year growth of the company's rail transit equipment business, while the year-on-year growth rate of Beijing Emerging Eastern Aviation Equipment Co.Ltd(002933) was as high as 132.77%, accounting for 28.72% of the company's revenue, compared with 15.09% in Q1 of 21.
Rail transit business is rebounding, driven by urban rail and subway: rail transit equipment business achieved a revenue of 1.771 billion yuan, a year-on-year increase of 2.79%. In terms of structure, the revenue of rail transit electrical equipment business was 1.385 billion yuan, a year-on-year decrease of 7.56%, and the revenue of rail construction machinery business was 204 million yuan, a year-on-year increase of 47.66%; The revenue of communication signal business was 73 million yuan, a year-on-year increase of 70.78%; The revenue of other rail transit equipment business was 109 million yuan, a year-on-year increase of 153.18%. At present, we believe that the "dark hour" of the company's rail transit business has passed. From the perspective of railway investment, according to China Railway Group, the national railway fixed asset investment reached 106.5 billion yuan in the first quarter, with a year-on-year increase of 3.1%, reflecting the improvement of the demand of the industrial chain. In addition, the company's signal system and other non traction system businesses accelerated their growth.
Beijing Emerging Eastern Aviation Equipment Co.Ltd(002933) welcomes the double growth rate, and IGBT, electric drive and sensor devices continue to make efforts: Beijing Emerging Eastern Aviation Equipment Co.Ltd(002933) business achieved a revenue of 731 million yuan, with a year-on-year increase of 132.77%, including 375 million yuan for power semiconductors, with a year-on-year increase of 124.99%, and about 200 million yuan for new energy vehicles. The supply and demand of downstream new energy vehicles, photovoltaic and other products continue to be tight. We expect that as the company's phase 2 IGBT production line climbs steadily, it is expected to gain a leading market share in new energy vehicles, photovoltaic and other products. In addition, the company's electric drive and sensor parts also witnessed several times of growth, among which the electric drive of new energy vehicles achieved a revenue of 183 million yuan, a year-on-year increase of 306.96%, benefiting from the help of independent IGBT devices and the batch delivery of mass production orders; The revenue of sensor parts was 48 million yuan, a year-on-year increase of 384.86%; With the relative mitigation of the overseas epidemic and the acceleration of the resumption of work and production, the income of marine equipment was 65 million yuan, a year-on-year increase of 70.25%; Industrial converter revenue was 60 million yuan, a year-on-year increase of 9.88%.
Increase the 6-inch SiC production line to create the strongest voice of automobile grade IGBT and SiC: the company announced on April 12 that it plans to invest 462 million yuan to increase the silicon carbide production capacity from 4-inch 10000 pieces / year to 6-inch 25000 pieces / year, promote the technical strength from planar gate SiC MOS to grooved gate SiC MOS, and catch up with the world's first-line manufacturers. Previously, the company has taken the lead in releasing China's first electric drive based on independent SiC devices. If the subsequent SiC starts, it is also expected to take the lead in the SiC field with the customer accumulation of automobile IGBT and the first clamping position of SiC technology and production line.
Investment suggestion: we expect the net profit attributable to the parent company in 2022 / 23 / 24 to be RMB 23.38/26.64/3.078 billion respectively, and the corresponding current price (closing price on April 26, 2022) PE to be 22 / 20 / 17 times respectively. As the leader of China's rail transit traction system, the company has strong capital and technical strength. At present, the company extends its layout to new energy IGBT and electric drive business. With strong technical advantages and capacity foundation, it will open up new performance growth points. Maintain a "recommended" rating.
Risk warning: the risk that the technical iteration is not as expected; Risks of macroeconomic and industrial policy changes; Risk that IGBT business progress is not as expected
