\u3000\u3 China Vanke Co.Ltd(000002) 706 Shanghai Liangxin Electrical Co.Ltd(002706) )
Matters:
The company released its annual report for 21 years. During the reporting period, the company achieved an operating revenue of 4.027 billion yuan, a year-on-year increase of 33.50%; The net profit attributable to the shareholders of the listed company was 419 million yuan, a year-on-year increase of 11.47%; The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was 390 million yuan, with a year-on-year increase of 11.91%. The company plans not to distribute cash dividends or convert capital reserve into share capital. The company’s performance is in line with expectations.
The company released the first quarterly report of 22 years. During the reporting period, the company achieved an operating revenue of 801 million yuan, a year-on-year increase of 11.57%; The net profit attributable to the shareholders of the listed company was 72 million yuan, a year-on-year increase of 12.72%; The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was 72 million yuan, with a year-on-year increase of 15.64%
Ping An View:
The performance is in line with expectations, and the revenue side maintains a growth trend. The company achieved an operating revenue of 4.027 billion yuan in 21 years, with a year-on-year increase of 33.50%; The net profit attributable to the shareholders of the listed company was 419 million yuan, a year-on-year increase of 11.47%; The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was 390 million yuan, with a year-on-year increase of 11.91%. The revenue side of the company maintained rapid growth in the past 21 years. The main reasons for the lower profit growth than the revenue growth include the decline of gross profit margin of some products due to the high price of main raw materials and the increase of financial expenses due to the increase of bank loan interest. 1q22 achieved an operating revenue of 801 million yuan, a year-on-year increase of 11.57%; The net profit attributable to the shareholders of the listed company was 72 million yuan, a year-on-year increase of 12.72%; The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was 72 million yuan, with a year-on-year increase of 15.64%. In the first quarter, under the unfavorable external environment, the company achieved steady growth; Looking forward to the whole year, we expect that with the promotion of resumption of work and production in East China, the growth rate of the company’s revenue side will gradually pick up.
With the rapid growth of power distribution business, the company’s competitiveness in the high-end market continues to improve. In 21 years, the company’s business revenue of terminal appliances / distribution appliances / control appliances / intelligent electricians was 13.76/20.53/372214 million yuan respectively, with a year-on-year increase of 14.69% / 43.87% / 58.90% / 46.58% respectively. The revenue of the company’s distribution products has achieved rapid growth, and the revenue volume has accounted for more than 50% of the company’s overall revenue, which verifies the company’s continuous breakthroughs in medium and high-end markets such as new energy, engineering construction and commercial construction in recent years. In 21 years, the company launched new products such as special circuit breaker for offshore wind power, molded case circuit breaker for Internet of things, intelligent cloud distribution system 2.0, and the competitiveness of the product line continued to increase. Looking forward to 22 years, we expect that with the continuous enhancement of the company’s brand strength and product strength, the company will continue to realize import substitution in China’s medium and high-end low-voltage electrical appliances market, and is expected to maintain a revenue growth rate significantly higher than the industry average.
The fixed growth plan was approved, and the construction of sea salt base helped the medium and long-term development. The company released the adjusted fixed increase plan on February 12, and plans to raise no more than 1.521 billion yuan for the R & D and manufacturing base project of intelligent low-voltage appliances and supplement working capital. The funds to be invested and raised are 1.330191 billion yuan respectively. The company announced on March 19 that the application for non-public offering of shares was approved by the CSRC. According to the fixed increase plan previously released by the company, after the completion of the fixed increase project, it will cover the whole industrial chain of intelligent low-voltage electrical appliances such as mold, stamping, injection molding, electroplating, welding, electronics, assembly, warehousing and logistics, and establish an intelligent chemical plant, intelligent logistics, intelligent production and intelligent supply chain system based on industrial interconnection. We expect that after the project is put into operation, it is expected to improve the company’s R & D and manufacturing level, cost control ability, product delivery ability and profitability, and help the company’s medium and long-term development.
Investment suggestion: the company is positioned in the high-end market of low-voltage electrical appliances. At present, it has a good development momentum in new energy, communication, engineering construction and other markets. In addition, with the sea salt base gradually put into operation, it is expected to enhance the company’s medium and long-term competitiveness. We maintain the forecast of the company’s net profit attributable to the parent company in 22 / 23 years to be 516 / 716 million yuan respectively, and the new forecast of the company’s net profit attributable to the parent company in 24 years to be 995 million yuan, corresponding to the closing price PE on April 28 to be 19.1 / 13.8 / 9.9 times respectively, maintaining the “recommended” rating.
Risk tips: 1) if the new construction area of real estate drops sharply, it will have a negative impact on the company’s income from the real estate industry in the long run; 2) If foreign competitors cut prices sharply, it will have an adverse impact on the overall competitive environment of the industry; 3) At present, the high-end market is still dominated by foreign capital. If the development of the company’s new products in the high-end market does not meet expectations, it will have a negative impact on the company’s revenue growth.
