\u3000\u3 Shengda Resources Co.Ltd(000603) 308 Anhui Yingliu Electromechanical Co.Ltd(603308) )
Events
On the evening of April 27, the company released its annual report for 2021: in 2021, the company achieved a revenue of 2.04 billion yuan, a year-on-year increase of + 11.29%; The net profit attributable to the parent company was 231 million yuan, a year-on-year increase of + 14.67%. The company released the first quarterly report of 2022: the company achieved a revenue of 523 million yuan, a year-on-year increase of + 14.29%; The net profit attributable to the parent company was 66 million yuan, a year-on-year increase of + 10.06%.
Business analysis
The “two machines” business continued to grow rapidly, and the nuclear power business developed steadily. In terms of revenue splitting in 2021, the revenue of aerospace new materials / nuclear power business / high-end equipment business was 511 / 304 / 1132 million yuan respectively, with a year-on-year growth rate of + 59.16% / + 6.64% / – 2.91% respectively; The high growth of the company’s aerospace business revenue is mainly due to the company’s forward-looking layout and technological breakthroughs in the field of aeroengines and gas turbines. The company’s aeroengine and gas turbine blades, casings, nozzle rings, deflectors and other high-temperature alloy hot end components are in short supply, which provides a strong guarantee for the batch delivery and stable supply of key models of engines and gas turbines. Up to now, the company’s “two machines” business has accumulated more than 500 varieties of blade, ring parts and gearbox development orders. About 230 varieties have been developed and about 270 varieties are still in the development stage. Sufficient model reserves open space for the rapid growth of business in the future. Hualong nuclear power shielding pump, the first batch of nuclear power shielding materials. The company has made major breakthroughs in high-performance nuclear radiation shielding materials applied in important national fields, and it is expected to bring sufficient orders during the 14th Five Year Plan period. In addition, due to the rising cost of raw materials and the complex situation outside China, the company gradually contracted its low value-added business.
Profitability remained stable on the whole, and land acquisition and storage further optimized the asset structure. In the 21st year, the company’s comprehensive gross profit margin was 36.44%, year-on-year -1.97 PCT, of which the gross profit margin of two machines / nuclear power / high-end equipment was 46.39% / 41.47% / 29.65%, year-on-year -2.42 / – 3.93 / – 3.81 PCT; 22q1 company’s gross profit margin was 36.06%, year-on-year -2.44pct; This is mainly due to the rising cost of upstream raw materials and accounting adjustment. In 2021 / 22q1, the net interest rate of the company was 10.35% / 12.16%, with a year-on-year increase of -0.58 / – 1.17pct. By the end of the first quarter, the company’s fixed assets were 2.7 billion yuan (a decrease of 700 million yuan compared with the end of the year 21), and the proportion of current assets increased to 46.49% (an increase of 11 PCT compared with the end of the year 21), mainly because the company’s land collection and storage optimized the company’s asset liability structure. We expect that the company’s land collection and storage is expected to improve the company’s cash flow level, which is of great significance to improve production and operation efficiency.
Profit adjustment and investment suggestions
It is estimated that the net profit attributable to the parent company in 202224 will be RMB 538 / 5.9 / 765 million respectively, and the corresponding PE will be 13 / 12 / 9 times respectively, maintaining the “buy” rating.
Risk tips
“Two machines” business is less than expected; Nuclear power business is less than expected; Risk of price fluctuation of main raw materials; The risk of RMB exchange rate fluctuation; The risk of repeated outbreaks.
