\u3000\u30 Beijing Telesound Electronics Co.Ltd(003004) 50 Wuxi Lead Intelligent Equipment Co.Ltd(300450) )
Investment events: Recently, the company released its 2021 annual report and the first quarterly report of 2022. In 2021, the company achieved an operating revenue of 10.037 billion yuan, a year-on-year increase of 71.32%; The net profit attributable to the parent company was 1.585 billion yuan, an increase of 106.47% year-on-year; The non net profit deducted was 1.532 billion yuan, a year-on-year increase of 117.83%. In the first quarter of 2022, the company achieved an operating revenue of 2.926 billion yuan, a year-on-year increase of 142.41%; The net profit attributable to the parent company was 346 million yuan, a year-on-year increase of 72.50%.
Lithium battery equipment business developed rapidly, and the company's operating revenue exceeded 10 billion for the first time. From 2021 to the first quarter of this year, the operating revenue of the company maintained rapid growth, and the net profit attributable to the parent company doubled. In 2021, the newly signed orders reached 18.7 billion yuan, a record high. The main reasons for the rapid growth of performance are as follows: 1) with the continuous improvement of the penetration rate of new energy vehicles worldwide, the accelerated development of the new energy vehicle industry chain and the large-scale expansion of downstream lithium battery manufacturers, the company's lithium battery equipment business has fully benefited, with a revenue of 6.956 billion yuan in 2021, an increase of 114.82% over the same period; 2) The company has actively arranged platform businesses, and non lithium battery businesses such as intelligent logistics system, 3C intelligent equipment and automobile intelligent production line have developed rapidly, becoming the second driving force of the company's performance growth. In March this year, China released the medium and long term plan for the development of hydrogen energy industry (20212035), which will accelerate the development of hydrogen energy industry. The company has entered the hydrogen energy and fuel cell equipment business since 2018 and is expected to achieve industry leadership.
The net profit margin increased significantly, and the change of product structure led to the decline of gross profit margin. Thanks to the decrease of expense ratio, the net profit of the company increased significantly in 2021, reaching 15.79%, with a year-on-year increase of 2.69pct. In 2021, the company's gross profit margin was 34.05%, a year-on-year decrease of 0.27pct. In the fourth quarter, the gross profit margin was 29.05%, a month on month decrease of 7.7pct, mainly due to the change of product structure. The business of intelligent logistics system has developed rapidly, accounting for 52% of the company's revenue in 2021; Restricted by the phased production capacity, the logistics business adopts the outsourcing processing mode, and the gross profit margin is low, which drives down the comprehensive gross profit margin of the company. After the release of production capacity, with the recovery of outsourcing of intelligent logistics business, the gross profit margin will be improved. With the increase of the profitability of Zhuhai Titan, a wholly-owned subsidiary, the gross profit margin rebounded to 30.80% month on month in 2022q1, and the company's comprehensive gross profit margin is expected to continue to improve.
The proportion of exports increased significantly, and the forward-looking layout of overseas markets showed results. In 2021, the company's export business increased significantly, with a year-on-year increase of 234.15%, and the revenue accounted for 14.73%. The company was the first to set up overseas markets in the industry. It has set up branches in the United States, Europe, Japan and South Korea for business development. At present, it has provided intelligent manufacturing overall solutions for many overseas customers. In addition, the company cooperates with Contemporary Amperex Technology Co.Limited(300750) to conduct in-depth cooperation in the German production base, and further develop the company's overseas business by relying on its high-quality overseas resources. The company's products have obvious advantages in price and have good competitiveness in the international market. With the continuous expansion of overseas customers and overseas markets, export is expected to become a new business growth point of the company.
Profit forecast and investment suggestions: the lithium battery equipment business of the company fully benefits from the large-scale production expansion process of downstream battery manufacturers, the rapid development of non lithium battery businesses such as intelligent logistics, 3C equipment and automobile intelligent production line, the acceleration of overseas business, and the steady growth of the company's performance and profitability in the future. We expect that the company will realize the net profit attributable to the parent company of RMB 2.606 billion, 4.004 billion and 5.184 billion respectively from 2022 to 2024, with corresponding EPS of RMB 167, 2.56 and 3.31 and corresponding PE of 25, 16 and 12 times, maintaining the recommended rating.
Risk tip: covid-19 epidemic situation is repeated, the expansion of new products is less than expected, the market competition is intensified, and the production expansion of downstream battery manufacturers is less than expected.
