\u3000\u3 Guocheng Mining Co.Ltd(000688) 377 Nanjing Develop Advanced Manufacturing Co.Ltd(688377) )
2022q1 revenue + 65% and performance + 136.9% year-on-year: in 2021, the company achieved a total operating revenue of 528 million yuan, a year-on-year increase of – 25.4%; The year-on-year net profit was RMB 3.9 billion, with a year-on-year return of -3.9%; The net profit deducted from non parent company was 19 million yuan, a year-on-year increase of – 71.7%. In 2022q1, the company achieved a total operating revenue of 200 million yuan, a year-on-year increase of + 65.0%; The net profit attributable to the parent company was 30 million yuan, with a year-on-year increase of + 136.9% and a month on month increase of + 597.4%; The net profit deducted from non parent company was 24 million yuan, a year-on-year increase of + 281.4%.
In 2022q1, the gross profit margin was significantly improved and the period expenses were well controlled: in 2021, the gross profit margin of the company was 20.7%, with a year-on-year increase of -7.2pp. In 2022q1, the company’s gross profit margin was 24.9%, a year-on-year increase of + 3.7pp, with a significant quarter on quarter improvement trend. In terms of period expense rate, the annual sales expense rate in 2021 was 3.1%, year-on-year + 0.4pp; The management expense ratio was 7.3%, year-on-year + 1.7pp; The financial expense ratio was 1.4%, year-on-year -2.3pp; The R & D expense ratio was 4.9%, with a year-on-year increase of -0.2pp; The total period expense rate was 16.5%, year-on-year -0.4pp. In 2022q1, the sales expense ratio was 1.7%, with a year-on-year increase of -2.3pp; The management expense ratio was 4.0%, with a year-on-year increase of -4.0pp; Financial expense ratio 0.6%, year-on-year + 0.6pp; The R & D expense rate was 3.3%, with a year-on-year increase of -0.5pp; The total period expense rate was 9.6%, year-on-year -6.3pp.
Deep sea business has made breakthroughs repeatedly, realizing the upgrading from “parts” orders to “parts” orders: benefiting from the transfer of deep-sea supply chain to the Asia Pacific region and the gradual standardization of special parts for core equipment, the company’s deep-sea business made breakthroughs repeatedly in 2021, realizing the upgrading from “parts” orders to “parts” orders. The proportion of orders for high value-added products continued to increase, and special parts products for 33 deep-sea oil and gas projects were successively undertaken. Among them, the batch order products of “deep-sea connector” applied to the underwater working condition of 3000 meters in the Brazilian sea area have been delivered to customers one after another, and a long-term supply agreement has been signed with customers. Under the general trend of component standardization, deep-sea key customers will gradually determine core suppliers and expand their supply scope in the future. The company was included in the supplier of technipfmc product standardization version 2.0 to jointly formulate the standard of deep sea 2.0. At the same time, it was also selected as one of the 25 core suppliers of schlumberge, becoming the only company providing oil and gas forgings.
Investment suggestion: the company actively extends the industrial chain and cultivates multi-directional die forging to create technical advantages. It has become a leading core supplier of oil service in Asia and will deeply benefit from industrial trends such as deep-sea supply chain transfer. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 150 million yuan, 250 million yuan and 380 million yuan respectively, corresponding to pe31, 19 and 12 times, maintaining the “buy” rating.
Risk tip: the international oil price fluctuates sharply, the capital expenditure of oil companies is less than expected, and the exchange rate fluctuation risk
