\u3000\u30 Zhongyan Technology Co.Ltd(003001) 24 Shenzhen Inovance Technology Co.Ltd(300124) )
Performance summary: the company 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 parent company was 3.573 billion yuan, a year-on-year increase of 70.15%; The net profit deducted from non parent company was 2.918 billion yuan, with a year-on-year increase of 52.55%; EPS is 1.37 yuan. In the first quarter of 2022, the revenue was 4.778 billion yuan, a year-on-year increase of 40.01%; The net profit attributable to the parent company was 717 million yuan, a year-on-year increase of 11%.
Guarantee supply and delivery, maintain the stability of the supply chain, and the profitability is expected to be stable and upward. The company’s gross profit margin in 2021 was 35.82%, down 3.14pp year-on-year. The gross profit margin in the first quarter of 2022 was 34.57%, a year-on-year decrease of 4.77pp, mainly due to the lack of core and the rise in the price of raw materials; The net interest rate was 15.07%, a year-on-year decrease of 5pp, mainly due to the increase of employees and the superposition of salary adjustment to the increase of expense rate in the first quarter. The company’s guaranteed supply and delivery has not stopped since 2020. With the advantage of scale, the company ensures good supply chain operation, and the company takes the lead in leading the “price rise tide” of China’s industrial control products, which has taken effect on April 15, which is expected to drive the company’s profitability to recover upward.
Breakthroughs have been made in the business of the control layer, and the localization process has been accelerated. In 2021, the company’s PLC & HMI achieved a revenue of 703 million yuan, with a year-on-year increase of 66.19%. The market share of Small PLC was 6.89%, ranking fifth in the world, and domestic capital rose to the first. In terms of medium and large-scale PLC, the company has completely replaced the foreign mainstream, and medium and large-scale PLC has been sold in key fields such as lithium battery, silicon crystal and mobile phone. PLC products maintained a year-on-year high-speed growth of 80% in the first quarter of 2022. It is expected that the localization of PLC will be further accelerated in the next two years. With the integrated development of PLC, the company will catch up from behind. Relying on the advantages of technology + customers, it is expected to take the lead in benefiting from the localization background.
The new energy vehicle business has a significant volume and excellent customer structure. In 2021, the company’s revenue of new energy vehicles was about 2.3 billion yuan, with a year-on-year increase of 250%. 360000 electronic controls (9.5% share, No.3), 100000 electric drives (5% No.5) and 120000 motors (top 10) were sold. The company added more than 30 fixed points throughout the year, and gradually transformed from all electric vehicles to hybrid electric vehicles. The company’s share in the new hybrid electric vehicles exceeded 30%. In addition, the orders of the company’s designated A-class car enterprises have increased, and the high-quality customer structure is conducive to the continuous rise of the company’s market share.
Strategic investment in digital and energy management business is expected to become a new growth point in the medium and long term. Digitization: 2021 is the first year of industrial Internet of things investment, and the company will increase R & D investment around the production side and post service market side; Dual carbon energy: energy storage has completed the annual task, and the products focus on serving the source network load on the factory side, and the performance is expected to be fully realized.
Profit forecast and investment suggestions. It is estimated that the company’s revenue from 2022 to 2024 will be 23.656 billion yuan, 30.209 billion yuan and 36.577 billion yuan respectively, and the net profit attributable to the parent company will maintain a compound growth rate of 21.68% in the next three years. The company’s businesses have accelerated development, and the digital business is expected to lead a new wave and maintain the “hold” rating.
Risk warning: increased competition and risk of business structure; Risk of rising raw materials; Macro factor risk.
