\u3000\u30 Zhongyan Technology Co.Ltd(003001) 24 Shenzhen Inovance Technology Co.Ltd(300124) )
The company released the annual report of 2021 and the first quarterly report of 2022, with a year-on-year profit of + 70% / + 11%. The company’s industrial control business has grown rapidly, new energy passenger vehicle orders have exploded, highlights in subdivided fields have appeared frequently, and its core competitiveness has been continuously enhanced; Maintain buy rating.
Key points supporting rating
Deduct 53% of non-profit growth in 2021: the company released the annual report of 2021 and achieved an operating revenue of 17.943 billion yuan in 2021, with a year-on-year increase of 55.87%; The net profit attributable to the shareholders of the listed company was 3.573 billion yuan, a year-on-year increase of 70.15%; The non-profit after deduction was 2.918 billion yuan, a year-on-year increase of 52.55%. In 2021q4, the non-profit deduction was 501 million yuan, with a year-on-year increase of 3.10% and a month on month decrease of 43.97%.
2022q1 profit increased by 11%: the company also released the first quarterly report of 2022, realizing an operating revenue of RMB 4.778 billion, a year-on-year increase of 40.01%, a profit of RMB 717 million, a year-on-year increase of 11.00%, deducting non-profit of RMB 698 million, a year-on-year increase of 11.62%. The results of the company’s annual report and the first quarterly report meet the performance forecast range.
The industrial control business grew rapidly and the revenue of general servo doubled: in 2021, the revenue of general automation business of the company was 8.982 billion yuan, with a year-on-year increase of 65%, of which the revenue of general servo business was 3.769 billion yuan, with a year-on-year increase of more than 100%; The gross profit margin of general automation business decreased by 2.24 percentage points year-on-year to 44.98%. The revenue of elevator integration business increased by 14.35% year-on-year to 4.967 billion yuan. The company’s industrial Siasun Robot&Automation Co.Ltd(300024) business division has achieved remarkable results in the operation of the industry line. Breakthroughs have been made in Fortress customers and large end customers, and good progress has been made in the exploration of new business. The annual revenue is 362 million yuan, with a year-on-year increase of about 111%. It achieved profitability for the first time in 2021, and its profitability has been greatly improved.
Remarkable achievements in electric control of new energy passenger vehicles: in 2021, the company’s new energy passenger vehicle business obtained a number of designated projects from Chinese first-line car enterprises and international car enterprises. There were more than 30 designated projects in the whole year, with a significant increase in orders. The annual revenue was about 2.3 billion yuan, a year-on-year increase of 250%, and the overall revenue of new energy automobile business was 2.992 billion yuan, a year-on-year increase of about 171%, The overall gross profit margin of new energy and rail transit business decreased by 1.12 percentage points to 21.91%.
Valuation
According to the company’s annual report, we adjusted the company’s predicted earnings per share from 2022 to 2024 to 1.58/2.01/2.50 yuan (the original predicted diluted earnings per share from 2022 to 2023 was 1.60/1.99 yuan), corresponding to a P / E ratio of 30.6/24.1/19.4 times; Maintain buy rating.
Main risks of rating
The manufacturing industry did not meet expectations; Price competition exceeds expectations; The demand of new energy vehicle industry does not meet expectations; The expansion of new energy vehicle customers did not meet expectations; The impact of the epidemic exceeded expectations; Rising material costs.
