\u3000\u30 Jinzai Food Group Co.Ltd(003000) 07 Hanwei Electronics Group Corporation(300007) )
Event:
The company released a quarterly report, with 22q1 revenue of 594 million yuan, a year-on-year increase of 12.27%; The net profit attributable to the parent company was 51.51 million yuan, a year-on-year increase of 21.73%; Deduct non net profit of 34.54 million yuan, an increase of 27.48% year-on-year.
Our comments are as follows:
1. Q1 performance is in line with expectations, slightly higher than the median value of the previous forecast
The company’s 22q1 revenue increased by 12.27% and the net profit attributable to the parent increased by 21.73%, all within the previous forecast range. Compared with last year, the growth rate slowed down, and the epidemic spread in many places in Q1. The delivery of some sensors and intelligent instrument products of the company was affected to some extent. There were delays in the execution of some contracts and the implementation and acceptance of Internet of things projects. The business development of some subsidiaries in sealed areas such as Shanghai was greatly affected. We believe that the short-term epidemic factor has an adverse impact on the company’s operation, which is expected to gradually subside in the second quarter. We look forward to the recovery of the company’s performance growth after the normalization of operation.
2. The gross profit margin increased steadily and slightly, and the net profit margin was basically flat
The company’s 22q1 gross profit margin was 30.47%, with a year-on-year increase of 1.24 percentage points; The net interest rate was 10.53%, a slight decrease of 0.3 percentage points over the same period. The overall expense rate (sales expense rate, management expense rate, R & D expense rate and financial expense rate) was 20.42%, basically unchanged year-on-year.
3. The company’s sensor business has developed steadily, opening up room for growth in the field of household appliances and automobiles
The company is a leading enterprise of gas sensors, and the sales revenue of metal oxide semiconductor, catalytic combustion and electrochemical sensors has maintained a stable growth. The company’s products have obvious advantages in the field of security and environmental protection, and have achieved market breakthroughs in the field of home appliances and automobiles: the field of home appliances has been successfully shortlisted as Gree, Midea, Huawei, Xiaomi and other well-known enterprises to achieve mass supply; Vehicle products have passed iatf16949 certification and obtained fixed-point orders from vehicle enterprises. With the gradual release of performance in the field of household appliances and automobiles, the company’s sensor product revenue and profit scale are expected to continue to grow rapidly.
4. The intelligent instrument business benefited from the implementation of the new safety law and fully grasped the market opportunities
Domestic substitution in the field of intelligent instrument industry ushers in an opportunity. At the same time, with the introduction of the new gas safety production law, gas safety will become a consensus of rigid demand. Under the background of low overall gas instrument installation penetration, the implementation of the new safety law may significantly increase the installation demand of gas instruments in recent 2-3 years, which is expected to drive the continuous and high growth of corresponding products of the company. In the first quarter of 2022, the company’s intelligent instrument business achieved significant performance growth in gas safety, industrial safety and other fields.
5. Internet of things solutions continue to develop steadily, benefiting from the construction of smart city
The company’s business is deeply arranged in smart city / underground comprehensive pipe gallery such as water supply / drainage, environmental protection, heating and gas, and the industry recognition and business capacity continue to improve: 1) the market share of smart gas in large gas customers has been further improved; 2) Significant progress has been made in developing new customers in the field of intelligent security; 3) Steady growth was achieved in the implementation of projects and new orders in the field of smart water. The company will deeply benefit from the construction of smart city / smart pipe gallery, and the corresponding business is expected to achieve sustained and rapid growth. Profit forecast and investment suggestions:
Focusing on the sensor and instrument business, the company continues to expand its layout through endogenous extension, and develops its business following the needs of the industry. With the sustained high prosperity of the Internet of things industry, the company is expected to benefit from deepening the traditional business layout and expanding new business areas. It is estimated that the net profit attributable to the parent company in 22-24 years will be 355 million yuan, 462 million yuan and 580 million yuan respectively, corresponding to 13 / 10 / 8 times of PE, maintaining the “buy” rating.
Risk warning: the development of new business areas of sensors is not as expected, the installation progress of gas instruments is not as expected, and the risk of fierce market competition
