\u3000\u3 Guocheng Mining Co.Ltd(000688) 187 Zhuzhou Crrc Times Electric Co.Ltd(688187) )
Event overview:
The company released 22q1 quarterly report: the revenue was 2.54 billion yuan, yoy + 22%, the net profit attributable to the parent was 340 million yuan, yoy + 31%, and the net profit not attributable to the parent was 210 million yuan, yoy + 37%. Q1 gross profit margin was 35.75%, down 2.2pct year-on-year, and net profit margin was 13.48%, up 0.81pct year-on-year.
The semiconductor sector accelerated growth and the boom of new energy vehicles was high
1) the prosperity of new energy vehicles is high, and related businesses are increasing rapidly: the company’s Q1 power device revenue is 375 million yuan, yoy + 125%, the new energy vehicle electric drive business revenue is 183 million yuan, yoy + 307%, and the sensor revenue is 48 million yuan, yoy + 385%. In contrast, in 2021, the company’s power device revenue grew by 33%, the electric drive business grew by 171%, and the sensor business grew by 14%. All three businesses in 22q1 showed a trend of accelerated growth. 2) The overseas epidemic eased, and the marine equipment business stopped falling and rebounded: the company’s marine equipment revenue in 21 years was 290 million yuan, yoy-10.6%. 22q1 with the mitigation of overseas epidemic and the acceleration of resumption of work and production, the income of offshore equipment reached 65 million yuan, yoy + 70%. 3) The 22q1 revenue of industrial converter business was 60 million yuan, yoy + 10%, still maintaining a growth trend.
Optimistic outlook for rail transit business in 22 years
Q1 rail transit revenue was 1.77 billion yuan, yoy + 2.8%, of which electrical equipment revenue was 1.385 billion yuan, yoy-7.6%. In addition, Q1 rail construction machinery business revenue was 200 million yuan, yoy + 48%, communication signal business revenue was 70 million yuan, yoy + 71%, and other rail transit business revenue was 110 million yuan, yoy + 153%, all of which achieved rapid growth. Looking forward to the whole year of 22, the epidemic situation at home and abroad is expected to ease one after another, the company’s overseas projects are advancing rapidly, China sees the first recovery of demand in the field of urban rail transit, the downstream bidding of motor car business is expected to be gradually strengthened, and the revenue is expected to maintain steady growth with the advent of the peak period of superimposed maintenance.
Seize the opportunity of “double carbon” and actively expand production to ensure high growth in the future
Under the background of “double carbon”, the company’s strategy is to unite ecological partners to build an end-to-end technology ecosystem with the deep integration of wind, light, storage, hydrogen and electric control technology. 1) New energy power generation: in 2021, the company actively expanded new energy equipment such as photovoltaic inverter and wind power converter, and the number of devices delivered in the field of new energy power generation increased significantly throughout the year. 2) New energy vehicles: more than 85000 sets of electric drive systems of new energy vehicles were delivered in the whole year of the 21st century, which has ranked among the top 10 in the industry, and the scale of automobile sensor chips ranks in the forefront of the industry. In addition, the company has established joint ventures with Dongfeng and GAC to further deepen the ecological collaborative layout. 3) Silicon carbide: the 3300v silicon carbide traction converter of the company has been applied in Shenzhen Metro, and the energy consumption has been reduced by 10%. It is expected to continue the development path of IGBT devices from high-voltage rail transit to medium and low-voltage automobile in the future. The company actively expanded production and gave full play to the advantages of IDM: the company’s IGBT chip phase II production line was officially put into operation at the end of 21, further improved the production capacity layout of 6-inch bipolar devices, 8-inch IGBT and 6-inch silicon carbide, and mastered the whole line of chips, modules, components and application technology, which is expected to strongly support the development of the company’s new energy business in 22 years.
Investment advice
Zhuzhou Crrc Times Electric Co.Ltd(688187) as the leader of domestic high-power devices, the rail transit field is expected to benefit from the recovery of demand after the epidemic. In the semiconductor field, with years of accumulation in the high-voltage field, the company has successfully grasped the localization demand in the fields of new energy power generation and new energy vehicles, superimposed with the large capacity of phase II, and is expected to achieve significant growth in 22 years. We maintain the prediction that the net profit attributable to the parent company in 22-24 years is RMB 2.36/30.6/3.58 billion, and the corresponding PE is 22 / 17 / 15 times, maintaining the “buy” rating.
Risk tips
The industry boom is less than expected, the progress of R & D is less than expected, and the ramp up of production capacity is less than expected.
