\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 885 Hongfa Technology Co.Ltd(600885) )
The company has achieved brilliant business results and further consolidated its leading position in the world
The company achieved an operating revenue of 10.023 billion yuan in 2021, with a year-on-year increase of 28.18%; The net profit attributable to the parent company was 1.063 billion yuan, a year-on-year increase of 27.69%; Deduct non net profit of 923 million yuan, with a year-on-year increase of 32.98%. The company realized an operating revenue of 2.875 billion yuan in 2022q1, with a year-on-year increase of 20.82%; The net profit attributable to the parent company was 279 million yuan, a year-on-year increase of 20.78%, and the non net profit deducted was 252 million yuan, a year-on-year increase of 20.66%. In 2021, the share of main relay products in the global market increased by 3PCT, further consolidating the industry position of relay products in the world. Considering the capacity expansion and the rapid growth of relay business, we raised the profit forecast for 2022 / 2023 and added the profit forecast for 2024. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 1.332 (+ 0.17) / 1.688 (+ 1.31) / 2.133 billion yuan, EPS will be 1.79/2.27/2.86 yuan respectively, and the current price earnings ratio will be 26.6/21.0/16.6 times respectively, maintaining the “buy” rating.
The company actively responded to the price rise of raw materials, and the gross profit margin improved month on month in 2022q1
The company’s overall gross profit margin in 2021 was 34.58%, down 2.37pct year-on-year; The overall gross profit margin in 2022q1 was 33.49%, a year-on-year decrease of 2.54 PCT and a month on month increase of 0.72 PCT. Due to the rise in the price of copper, iron and other main raw materials used by the company for production, the gross profit margin of the company decreased year-on-year in 2021 and 2022q1. At the end of 2021, the company responded to the rising pressure of raw material prices by raising prices, which improved the gross profit margin in 2022q1 month on month.
The company has made efforts to expand production capacity in various ways, and the goal of “creating another 10 billion” is expected
In 2021, the company actively expanded its production capacity in various ways: (1) in 2021, the company invested more than 1 billion yuan in technological transformation, and a total of 38 automatic production lines were put into use. This has promoted the company’s product quality and production efficiency. (2) The company plans to promote the construction of three bases in Xiamen, Zhangzhou, East and west to create conditions for subsequent capacity expansion. (3) The company issued convertible bonds to raise funds for production expansion. After the completion of the capacity improvement project of high-voltage DC relay for new energy vehicles, the capacity of high-voltage DC relay will be increased by 6.5 million / year, and the capacity of PCB automotive relay will be increased by 65 million / year after the completion of the technical transformation and industrialization project of new generation automotive relay. The high-voltage DC relay, automobile relay, power relay and other products actively expanded by the company are products with strong demand at present and in the future. The company’s goal of “creating another 10 billion” can be expected.
Risk tip: the price rise of raw materials is higher than expected, the capacity construction is lower than expected, and the sales volume of new energy vehicles is lower than expected.
