\u3000\u30 Jinzai Food Group Co.Ltd(003000) 34 Gaona Aero Material Co.Ltd(300034) )
In 2021, the net profit attributable to the parent company increased by 50% year-on-year, exceeding expectations, and the profitability of superalloys increased significantly
In 2021, the company achieved a revenue of 2 billion yuan, a year-on-year increase of 26%, and a net profit attributable to the parent company of 310 million yuan, a year-on-year increase of 50%, exceeding the expectation; The compound growth rate of the company's revenue from 2019 to 2021 is 18%, and the compound growth rate of net profit attributable to the parent company is 40%; In 2022q1, the company achieved a revenue of 520 million yuan, a year-on-year increase of 49%, and a net profit attributable to the parent company of 60 million yuan, a year-on-year increase of 10%.
In terms of products, the company's revenue of casting superalloys in 2021 was 1.2 billion yuan, an increase of 21% year-on-year. A variety of turbine castings were delivered in batch production, and turbine blades have the capacity of mass production; The revenue of deformed superalloy was 500 million yuan, an increase of 26% year-on-year, and the delivery of "fist product" GH4169 series reached a new high; The revenue of new superalloys was 290 million yuan, with a year-on-year increase of 54%. Major breakthroughs were made in preparation technology, laying the foundation for mass production.
The gross profit margin decreased due to the influence of raw materials: the gross profit margin of the company was 28% in 2021, a year-on-year decrease of 6.4 percentage points, mainly due to the sharp rise in the cost of raw materials such as nickel and cobalt (the cost of raw materials accounted for 46%); In 2022q1, the gross profit margin was 29%, a year-on-year decrease of 3.4 percentage points. The decline in profitability caused by the rise of raw materials is expected to continue. While the profitability decreased, the net profit increased significantly, mainly due to the significant growth of other income (government subsidies) and investment income. In the future, the company is expected to effectively control costs through process improvement and yield improvement.
The sharp rise in inventories and contract liabilities confirms the high demand boom, vigorously explore the market and make steady progress
Inventories and contractual liabilities rose sharply: the company's inventories at the end of 2021 were 860 million, an increase of 45% over the beginning of the period, and the inventories in 2022q1 further increased to 1.02 billion, mainly due to the implementation of the strategic reserve of raw materials for military product assurance; The contract liabilities of the company at the end of 2021 were RMB 80 million, an increase of 46% over the beginning of the period, and increased to RMB 103 million in 2022q1, mainly due to the increase of advance payment. The multi-directional indicators strongly confirm the high prosperity of downstream demand, and the company's future performance is expected to grow rapidly.
Deep cooperation Aecc Aviation Power Co Ltd(600893) , benefiting from new train installation + stock replacement + domestic replacement, exceeding the growth rate of the industry
The company plans to establish a joint venture with Aecc Aviation Power Co Ltd(600893) to greatly improve its service capacity and core competitiveness, and strive to be the "leader" of aeroengine superalloy through in-depth cooperation;
There is a large market space for SUPERALLOYS: the addition and maintenance of military engines promote the great development of the high-end superalloy market. Large domestic civil aircraft are expected to open the ceiling of Superalloy applications. Missile "consumables" have a large demand for Superalloys for engines, and ships, nuclear power plants and chemical multi-line help boost the demand for superalloys;
Leading enterprises take the lead: the company surpasses other institutes and enterprises in terms of product coverage model and industrial scale, special steel enterprises in terms of R & D strength, and private enterprises in terms of experience and background. It is expected to benefit from the high growth of Superalloy industry brought by the increase of new engine train installation + stock engine replacement + domestic replacement rate, and has great flexibility in long-term performance.
Investment suggestion: strong technical strength + multiple product models + capacity expansion + market development jointly promote high performance growth. It is estimated that the company's net profit from 2022 to 2024 will be 420 / 560 / 770 million, with a year-on-year increase of 38% / 34% / 37%, a compound growth rate of 36%, and PE of 31 / 23 / 17 times, maintaining the "buy" rating.
Risk warning: the military engine is not installed as expected, and the competition pattern changes.
