\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 20 Jiangyin Haida Rubber And Plastic Co.Ltd(300320) )
Performance summary: the company achieved an operating revenue of 2.523 billion yuan in 2021, with a year-on-year increase of 11.47%; The net profit attributable to the parent company was 148 million yuan, a year-on-year decrease of 70.29%. In the first quarter of 2022, the operating revenue was 670 million yuan, an increase of 20.00% year-on-year; The net profit attributable to the parent company was 40 million yuan, a year-on-year decrease of 19.89%.
Short term profitability is affected by price pressure of raw materials. Affected by the covid-19 epidemic and the commencement of the project, the rail business realized an income of 651 million yuan, a slight decrease of 7.81% year-on-year, and the newly won and on-hand orders continued to maintain a high level. With the gradual mass production of several new projects of vehicle sealing strips and vehicle damping parts, the automobile business realized an income of 745 million yuan, a year-on-year increase of 6.77%. Shipping products benefited from a sharp rise in sea freight and realized an operating revenue of 245 million yuan, a year-on-year increase of 140.18%. The construction sector achieved an operating revenue of 302 million yuan, a year-on-year increase of 15.00%. Affected by the rising price of raw materials, the revenue of lightweight aluminum products was 480 million yuan, a year-on-year increase of 17.64%. Affected by the sharp rise in the price of EPDM, the company’s gross profit margin has decreased significantly since 21q3. 22q1 comprehensive gross profit margin was 16.54%, down 5.84pp year-on-year and 2.47pp month on month.
22q1 the expenses were well controlled and the performance exceeded expectations. 22q1 company’s revenue increased by 20.00% year-on-year, a record high. Although the gross profit margin has declined, the company’s expenses are well controlled. The sales expenses decreased by 30.92% year-on-year, and the management expenses and R & D expenses were basically the same. The net profit attributable to the parent company was 40 million yuan, a year-on-year decrease of 19.89%, and the overall performance exceeded market expectations.
The snap short frame has been preliminarily approved, and we look forward to the landing of batch orders. The company’s buckle short frame has the advantages of low cost, self-cleaning, no glue, no curing process, low packaging and transportation cost, which can improve the production efficiency of components, reduce the production, packaging and transportation costs, save the cost of photovoltaic power station, save operation and maintenance costs and improve the power generation. The product has been officially introduced to the market since June 2021 and has been applied to the national photovoltaic and energy storage demonstration experimental platform (Daqing base) (double glass module centralized power station), a subsidiary of China building materials in Shandong Tai’an (flexible module distributed power station), a project in Quzhou, Zhejiang (double glass module distributed power station), and other projects. The buckle short frame products have been preliminarily approved by customers, and we look forward to the implementation of subsequent orders.
Profit forecast and investment suggestions. The company’s 22q1 revenue reached a new high. Although the profit was under pressure due to the rise in the price of raw materials, the performance through cost control still exceeded expectations. The advantage of buckle short frame is obvious, and it is expected to obtain batch orders in the future. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 189 million yuan, 386 million yuan and 545 million yuan respectively, corresponding to 28, 14 and 10 times of PE respectively, maintaining the “buy” rating.
Risk tips: the promotion progress of buckle short frame is lower than expected, the price fluctuation of raw materials such as EPDM, covid-19 epidemic and other risks.
