\u3000\u30 Beijing Telesound Electronics Co.Ltd(003004) 70 Sinoseal Holding Co.Ltd(300470) )
Event: on April 26, 2022, the company released the annual report of 2021 and the first quarterly report of 2022. In 2021, the company achieved a revenue of 1.132 billion yuan, a year-on-year increase of 22.43%, and a net profit attributable to the parent company of 287 million yuan, a year-on-year increase of 36.27%. In 2021, Q4 company achieved a revenue of 275 million yuan, a year-on-year increase of 7.2%, and the net profit attributable to the parent company was 74 million yuan, a year-on-year increase of 29%. In the first quarter of 2022, the company achieved a revenue of 265 million yuan, a year-on-year increase of 14.98%, and the net profit attributable to the parent company was 62 million yuan, an increase of 18.92%.
Abundant cash flow and increasing profitability. In 2021, the net cash flow generated from the company's operating activities was 265 million yuan, with a year-on-year increase of 41.1%, and the comprehensive gross profit margin was 51.83%, with a year-on-year increase of 3.07 PCT, which was mainly due to the fact that the petrochemical and construction machinery industry maintained a high investment intensity, more new projects, stable incremental market competition pattern, and the gross profit margin was significantly warmer than that in 2020, and the stock market demand returned to the pre epidemic level. In addition, the business collection of all sectors of the company was better in 2021, Moreover, there were many bills for foreign exchange settlement at maturity, and the net operating cash flow exceeded 200 million yuan for the first time.
The orders on hand are at a high level, and the expanded production capacity is gradually released. In 2021, the company's orders on hand remained at a high level, and a large number of orders were obtained for many major new projects, but some orders were overstocked due to capacity bottlenecks in some links. Previously, the company completed the construction of the new plant in Japan in the second half of 2021, and the equipment was in place one after another. It is expected to complete the construction of the special workshop for nuclear power sealing in 2022. In addition, the expansion plan of mechanical seals formulated by the company at the beginning of 2021 is expected to meet the sales revenue of 100200 million, and it is expected to reach full production in the second quarter of 2022.
The construction of ethylene project was accelerated, and the nuclear power business entered the fast lane of development. In 2021, the company's petrochemical industry revenue was 333 million yuan, a year-on-year increase of 33.1%, and the equipment manufacturing business revenue was 558 million yuan, a year-on-year increase of 28%. The company's equipment manufacturing business income mainly comes from the petrochemical industry. China's large-scale integration, especially the accelerated construction of ethylene projects, puts forward higher requirements for mechanical seal suppliers. As a leading enterprise, the company has strong competitiveness in the supporting market of new projects. In addition, R & D and market development in the field of nuclear power have also made relatively smooth progress. The full import substitution of nuclear power seals has been significantly accelerated. New orders signed in the whole year exceeded 70 million yuan, a record high. In 2021, the company obtained domestic R & D orders for mechanical seals of seawater circulating pump and main feed pump respectively, completed the R & D of mechanical seals of fourth generation main circulating sodium pump, and signed the supporting contract of new units. In addition, the dynamic pressure and static pressure shaft seals of the nuclear main pump developed by the company for more than ten years have successfully passed the appraisal and broken the foreign monopoly. Among them, the static pressure shaft actively carried out the application promotion work and obtained the mechanical seal order of the nuclear main pump. At present, the company's nuclear power business has entered the "fast lane" of development, which will become a strong support for profit growth in the future.
Many years of investment has finally paid off, and international business has accelerated. In 2020, affected by the epidemic, the company's international business declined. In 2021, the company's international business revenue exceeded 50 million yuan, completed supporting orders for important projects such as Siemens and Elliott Shenghong, and was included in the list of qualified suppliers for large-scale integration projects alone by global petrochemical giants such as BASF and ExxonMobil. In addition, the company has successively obtained orders for many national petrochemical projects along the "the Belt and Road" by undertaking EPC projects of well-known companies at home and abroad. With the advantages of rapid response and professional and timely service, the company has won high praise from foreign customers. The company's international business is expected to maintain rapid growth in the next few years.
Investment suggestion: the company is expected to realize a net profit attributable to the parent company of 357 / 425 / 502 million yuan from 2022 to 2024, with corresponding EPS of 1.71/2.04/2.41 yuan / share respectively, maintaining the "recommended" rating.
Risk warning: the risk that the order cannot be delivered in time, the risk that the R & D is less than expected, and the risk of bad debt and liquidity.
