\u3000\u3 Jiangsu Eastern Shenghong Co.Ltd(000301) 029 Dongguan Yiheda Automation Co.Ltd(301029) )
Event 1: the company released the annual report of 2021. 1) Revenue side: the company achieved revenue of 1.803 billion yuan, yoy + 49.03%; Net profit attributable to parent company: 401 million yuan, yoy + 47.65%; Deduct the net profit not attributable to the parent company of RMB 393 million, yoy + 51.01%. 2) Profitability: gross profit margin 41.57%, yoy-2.28pct; The net interest rate is 22.22%, yoy-0.21pct; In 2021, the company’s expense control ability was improved, and the expense rate in 21 years was 14.76%, with a year-on-year decrease of 2.84pct, of which the expense rates of sales / management / R & D / finance were 4.89% / 6.57% / 3.67% / – 0.37%, with a year-on-year change of -2.37pct / + 0.05pct / – 0.43pct / – 0.09pct respectively. In 2021, the company realized a net cash flow from operating activities of RMB 233 million, a year-on-year increase of – 5.39%. 3) 21q4: the company achieved a revenue of 474 million yuan, yoy + 24.57%; The net profit attributable to the parent company was 94 million yuan, yoy + 9.71%; Gross profit margin: 91yot-82.9%; The net interest rate is 19.82%, yoy-2.69pct.
Event 2: the company released the first quarterly report of 2022. In 2022q1, the company achieved a revenue of 487 million yuan, a year-on-year increase of + 52.60%; The net profit attributable to the parent company was 101 million yuan, a year-on-year increase of + 63.72%; The net profit deducted from non parent company was 97 million yuan, a year-on-year increase of + 59.41%; The gross profit margin is 39.71%, yoy-3.29pct; The net interest rate is 20.72%, yoy + 1.41pct; The expense rate of the company decreased significantly during the first quarter. The expense rate in 2022q1 was 15.04%, a year-on-year decrease of 4.81 PCT, of which the expense rates of sales / management / R & D / finance were 4.92% / 6.40% / 3.97% / – 0.26% respectively, with a year-on-year change of -3.59 PCT / – 1.19 PCT / – 0.39 PCT / + 0.35 PCT respectively.
The automation one-stop service capability has been improved, and the core competitiveness has been further strengthened:
1) the company has transformed the traditional mode of drawing, selection and procurement of FA factory automation parts required by automation equipment into a one-stop procurement mode, improved customer selection and procurement efficiency, and formed its own competitive advantage. 2) Gradually develop the ERP information system to an integrated system integrating procurement, approval, logistics and settlement, and ensure that what customers choose is what they need through digital product database and e-commerce trading system, so as to improve the efficiency of customer design, selection and procurement. 3) The self-made supply system of agile manufacturing, the product supply system of OEM supply and intensive procurement have been established. Through supplier development, quality control and warehouse sorting management, the supply chain management ability has been continuously strengthened to ensure the timely, accurate and high-quality delivery of customer orders. In 2021, the company’s annual order processing volume is about 770000 orders, and the annual total shipment volume is about 3.3 million items.
With the combination of “offline + online”, the viscosity of customers is further improved:
1) in 2021, the proportion of online and offline customers is about 78%: 22% respectively; The proportion of online and offline sales amount is about 28% and 72% respectively. 2) In 2021, customers with more than two sales records accounted for about 73%, and the sales contribution exceeded 99%; Among them, customers who place orders more than 10 times account for about 26%, and this part of customers contribute about 94% of sales. 3) In terms of industry, the top five industries with sales proportion are: lithium battery about 26%, 3C and mobile phone about 26%, automobile about 10%, photovoltaic about 5% and Siasun Robot&Automation Co.Ltd(300024) about 4.5%.
Profit forecast: due to the strong platform expansion ability of the company and the small impact of periodic epidemic fluctuations, there is still much room for growth and improvement in the future. We predict that the net profit attributable to the parent company from 2022 to 2024 will be 581 million yuan (the former value is 570 million yuan), 827 million yuan (the former value is 800 million yuan) and 1176 million yuan respectively, and the corresponding PE will be 35.14/24.69/17.36x respectively, which will be raised to the buy rating!
Risk tips: model innovation risk, new product development risk, market competition risk, etc.
