\u3000\u30003 Guangdong Piano Customized Furniture Co.Ltd(002853) 00285)
Event:
On April 25, 2022, the company announced the report of the first quarter of 2022: the company achieved an operating revenue of 837 million yuan in Q1, a year-on-year increase of 34.78% and a month on month decrease of 5.84%; The net profit attributable to the parent company was 208 million yuan, an increase of 11.94% year-on-year and 7.48% month on month; The net profit attributable to the parent company after non deduction was 187 million yuan, with a year-on-year increase of 15.06% and a month on month increase of 22.48%; The net cash flow from operating activities was -32 million yuan, with a year-on-year increase of 58.82% and a month on month decrease of 109.97%; The net interest rate was 25.13%, a year-on-year decrease of 5.95 percentage points and a month on month increase of 2.14 percentage points.
Key investment points:
All sectors developed steadily, and Q1 performance increased year-on-year
The company achieved an operating revenue of 837 million yuan in Q1 of 2022, with a year-on-year increase of 34.78% and a month on month decrease of 5.84%; The net profit attributable to the parent company was 208 million yuan, an increase of 11.94% year-on-year and 7.48% month on month; The net cash flow from operating activities was -32 million yuan, with a year-on-year increase of 58.82% and a month on month decrease of 109.97%. The year-on-year increase in net cash flow from operating activities was mainly due to the increase in sales receipts in the current period. The year-on-year increase in revenue was due to the increase in revenue of various sectors during the reporting period. In 2022, Q1 company’s overall development and operation were stable, and the company’s operating revenue increased by 34.78% year-on-year. In 2022, the sales expense ratio of Q1 company was 3.56%, a year-on-year decrease of 0.31 percentage points and a month on month increase of 0.85 percentage points; The management expense ratio was 4.24%, a year-on-year decrease of 2.31 percentage points and a month on month decrease of 1.39 percentage points; The financial expense ratio was – 0.18%, with a year-on-year increase of 0.34 percentage points and a month on month decrease of 2.13 percentage points; At the same time, the company’s R & D expenses were 51 million, a year-on-year increase of 10.21% and a month on month decrease of 6.87%. Overall, Q1 cost control in 2022 is relatively excellent.
The oral business has a large growth space, and the ceramic ball preparation technology breaks the foreign monopoly
As the main supplier of domestic nano composite zirconia powder materials and porcelain blocks for dental use, the company faces the broad market in China and has sufficient room for performance growth. Due to the early start of relevant industries in developed countries / regions such as Europe and the United States, several major overseas brands have monopolized the global market. The market share of foreign brands in some segments of the track has reached 90%, and there is a wide space for domestic substitution. The preparation of precision ceramic balls has a high technical threshold. The core technology of the industrial chain is mostly mastered by foreign enterprises. China started late and the technology is backward. After several years of efforts, guoci Jinsheng, a subsidiary of the company, has overcome the high-end ceramic ball processing technology, the performance of some products has reached the leading level, and the market share has been continuously improved.
Production capacity launch will bring incremental profits to the company
In the field of MLCC medium materials, the company will add 2500 t / A and expand the plant on the basis of the original 2500 t / a capacity of the raised investment project. After reaching the production capacity, the company’s MLCC medium material capacity will reach 15000 T / A to meet the growing demand of the downstream. In the field of high-purity ultra-fine alumina and boehmite materials, the company will continue to expand its production capacity in 2022. It is expected that the production capacity of high-purity ultra-fine alumina will gradually expand to 30000 tons / year and boehmite to 100000 tons / year within three years, so as to meet the strong demand of lithium battery raw material market. In the field of cerium zirconium solid solution, the expansion project is expected to release production capacity in succession within the year.
Share repurchase demonstrates the confidence of the company’s management
The company announced that as of March 31, 2022, the company had repurchased 5.2 million shares of the company through centralized bidding trading through the special securities account for stock repurchase, accounting for 0.5180% of the total share capital of the company. The highest transaction price was 41.68 yuan / share, the lowest transaction price was 33.70 yuan / share, and the total transaction amount was 200 million yuan (excluding transaction costs). Share repurchase demonstrates the management’s confidence and determination in the company’s operation.
Investment rating and Valuation: it is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 1089 million, RMB 1439 million and RMB 1738 million respectively, and the PE will be 29, 22 and 18 respectively, giving a “buy” rating.
Risk warning: the risk of large market fluctuations caused by the epidemic; The implementation of national six standards is less than expected; The company’s integration did not meet expectations; The growth rate of downstream demand was lower than expected.
