\u3000\u3 China Vanke Co.Ltd(000002) 837 Shenzhen Envicool Technology Co.Ltd(002837) )
The performance of 2022q1 increased steadily, and the double-digit growth of the performance of 2021 basically met the expectations. Recently, the company announced that the revenue of 2022q1 was 400 million yuan, a year-on-year increase of 17.1%. The net profit attributable to the parent company is 13 million yuan and the operating cash flow is 59 million yuan. In 2021, the revenue was 2.228 billion yuan, a year-on-year increase of 30.82%, and the net profit attributable to the parent company was 205 million yuan, a year-on-year increase of 12.86%. During the reporting period, affected by factors such as repeated outbreaks, rising raw materials and limited international logistics, the revenue and net profit reached a new high, and the performance basically met expectations.
IDC’s demand for temperature control is increasing, and the business margin of energy storage and temperature control is improving, ushering in a new increment. The company is a leading provider of precision temperature control and energy-saving solutions and products in China. In 2021, the revenue of computer room temperature control and energy-saving products (data center, high-precision laboratory, etc.) was 1.198 billion yuan, with a year-on-year increase of 38.16%. The year-on-year decrease in gross profit was mainly due to the increase in raw materials since the second quarter of last year. The company insists on optimizing cost reduction, alleviating the rising pressure of raw materials, appropriately increasing product prices and improving gross profit margin. The project of “counting from the east to the west” has been continuously promoted, the demand for centralized procurement of operators has continued to be strong, and the company’s market share is among the best. The increase in the demand of IDC temperature control business is expected to drive the company’s revenue margin to improve. The revenue of cabinet temperature control and energy-saving products (wireless communication base station, energy storage power station, intelligent network power, etc.) was 663 million yuan, with a year-on-year increase of 29.76%, of which the revenue of energy storage application was about 337 million yuan, with a year-on-year increase of about 350%, bringing strong business increment to the company. The company’s charging pile temperature control system is promoted with 800V voltage platform to provide high-performance heat dissipation scheme for high-power super fast charging. The demand for liquid cooling and air cooling solutions has increased, promoting the rapid growth of the company’s energy storage platform business. In terms of bus air conditioning, the revenue was 85 million yuan, a year-on-year decrease, mainly due to the lack of significant improvement in the market demand of traditional new energy buses, and the sales volume of downstream products was affected. The company actively intervenes in the temperature control of the power exchange system of special vehicles, increases the investment in the core parts of electric vehicles such as vehicle compressors, expands the vehicle product portfolio and promotes the development of bus business. In terms of rail transit trains, the revenue was 184 million yuan, a year-on-year decline, mainly due to the progress of subway line construction projects and the demand rhythm of main engine plants. The company actively promotes the application of sterilization and disinfection function module in the newly-built and reconstructed subway train air conditioner, and better digests the impact of the rising cost of some raw materials on the gross profit margin by optimizing the UN wheeling repair service operation management mode and product design. Benefiting from the operators’ focus on it, the increasing orders of IDC related supporting products, the green energy-saving policy of data center, the rapid growth of energy storage market demand and other industries, the company’s performance is expected to maintain a high growth trend.
The overall layout of liquid cooling technology has consolidated its market position, and there is obvious room for long-term high growth. In 2021, the R & D investment was 150 million yuan, a year-on-year increase of 29.93%, and the revenue accounted for 6.74%. By the end of the reporting period, the company had 86 software works and 616 patents, including 42 invention patents. The liquid cooling platform of the company has been continuously improved, and the independent R & D ability of end-to-end core components has been continuously enhanced. Adhering to customer orientation, the layout of the whole industrial chain has launched customized solutions, and the core advantages have been highlighted. The annual dividend of 60.18 million yuan was realized, the profitability and cash flow assets of the company were continuously improved, and more dividends were paid back to shareholders. We are optimistic about the good development of the industry and the high growth trend of the company in the future. Combined with the company’s 2021 annual performance report, we give the company the predicted value of net profit attributable to the parent company from 2022e to 2024e of 236 million yuan, 280 million yuan and 339 million yuan, corresponding to EPS of 0.71, 0.84 and 1.01 yuan and pe29.9 million yuan 36 times, 24.71 times and 20.43 times, with “recommended” rating.
Risk warning: uncertainty risk of epidemic situation outside China; Shortage of raw materials and rising prices; Market competition intensifies, and the market promotion of new products is less than expected.
