\u3000\u30 Zhongyan Technology Co.Ltd(003001) 24 Shenzhen Inovance Technology Co.Ltd(300124) )
Event overview: on April 26, the company released the annual report of 2021 and the first quarterly report of 2022. In 21 years, the company achieved a revenue of 17.94 billion yuan, a year-on-year increase of 55.9%; The net profit attributable to the parent company was 3.57 billion yuan, a year-on-year increase of 70.2%; Deduction of net profit not attributable to parent company was 2.92 billion yuan, with a year-on-year increase of 52.6%; The basic earnings per share is 1.37 yuan. 22q1 company achieved a revenue of 4.78 billion yuan, a year-on-year increase of 40.0%; The net profit attributable to the parent company was 720 million yuan, a year-on-year increase of 11.0%; Deduct the net profit not attributable to the parent company of RMB 700 million, with a year-on-year increase of 11.6%; The basic earnings per share is 27.0 yuan.
The strength of guarantee supply is prominent, and the profitability is expected to improve steadily in the future. 1) The company adheres to the supply guarantee strategy, and the market share continues to increase. In the past 21 years, even affected by the epidemic situation, lack of core, sharp rise in commodity prices and other factors, based on the supply guarantee strategy, the company actively seized the opportunities brought by the shortage of goods in the global industrial chain under the lack of core, and the revenue and parent ownership still increased significantly, far exceeding the industry average level (China’s industrial control industry increased by 17% in the same period in the past 21 years). The market share of general servo system, low-voltage frequency converter, small PLC and other products ranked among the forefront of the industry. 2) The profit of 21 years is under pressure and is expected to increase steadily in the future. Due to the great impact of cost side pressure, the moderate price increase of downstream customers of the company has transmitted the cost side pressure. The gross profit margin of 22q1 company has increased by 3.6pcts to 34.57% month on month, and the profitability has been repaired. In the future, with the improvement of ASP products and the continuous promotion of management reform, the profitability of the company is expected to be steadily improved.
The general automation full product platform is connected, and the growth space is broad. The company’s general automation products include general frequency converter, general servo system, electro-hydraulic servo system, PLC & HMI, CNC (machine tool control system), high-performance motor and other products and solutions, and the products at all levels such as control layer, drive layer and execution layer have been improved. In the 21st year, the company’s general servo system achieved a sales revenue of 3.145 billion yuan, a year-on-year increase of more than 100%. The general servo system achieved a sales revenue of 3.769 billion yuan, PLC & HMI achieved a sales revenue of 703 million yuan, and electro-hydraulic system achieved a sales revenue of 765 million yuan (including EasTone). Under the background of machine replacement and factory automation / intelligence, the company’s frequency converter, servo system, PLC and other products still have great growth space. In addition, after the merger and acquisition of Wuxi Best Precision Machinery Co.Ltd(300580) by the company, the customer resources are further expanded, the supply capacity of elevator integrated solutions is also improving, the demand for elevator installation and other industries is increasing, and the company’s elevator business is expected to maintain stable growth.
The new energy vehicle business is growing rapidly and is expected to grow into a new performance growth point. The company’s new energy vehicle business has maintained high investment, and has built a perfect technical platform and product platform. At present, the company has been able to provide electric drive systems (motors, motor controllers, electric drive assemblies) and power supply systems (DC / DC, OBC, power assemblies) for new energy passenger vehicles and new energy commercial vehicles, and has broken through many high-quality customers in China and internationally. In the past 21 years, the company’s new energy vehicle business has achieved revenue of 3 billion yuan, with a year-on-year increase of 171%, With the continuous high growth of global new energy vehicle sales, as well as the fixed-point and SOP volume of the company’s strategic customers, the company’s new energy vehicle business is expected to usher in rapid development.
Investment suggestion: the company’s revenue and net profit attributable to the parent company have achieved rapid growth in 2021. We expect the company’s revenue in 22-24 years to be 24.327 billion yuan, 31.198 billion yuan and 39.658 billion yuan respectively, with growth rates of 35.6%, 28.2% and 27.1% respectively; The net profit attributable to the parent company was 4.099 billion yuan, 5.155 billion yuan and 6.499 billion yuan respectively, with growth rates of 14.7%, 25.8% and 26.1% respectively. Corresponding to the closing price on April 27, the 22-24 year valuation of the company is divided into 34x, 27x and 22x. Maintain a “recommended” rating.
Risk tip: the sales volume of new energy vehicles is lower than expected; Commodity prices rose more than expected.
