\u3000\u30 Beijing Telesound Electronics Co.Ltd(003004) 70 Sinoseal Holding Co.Ltd(300470) )
In 2021, the revenue increased by 22.43% year-on-year, and the net profit attributable to the parent company increased by 36.27% year-on-year. The company achieved a revenue of 1.132 billion yuan in 2021, with a year-on-year increase of 22.43%; The net profit attributable to the parent company was RMB 287 million, with a year-on-year increase of 36.27%, mainly due to the good incremental market demand of petrochemical and construction machinery industries and the recovery of stock market demand. In 2021, the gross profit margin / net profit margin was 51.83% / 25.42%, with a year-on-year change of + 3.07 / + 2.58 PCT. The increase in gross profit margin was mainly due to the basic stability of incremental market competition. In 2021, the company’s sales / management / R & D / financial expense ratio was 10.58% / 8.23% / 4.59% / – 0.32%, with a year-on-year change of + 1.50 / – 0.44 / + 0.13 / – 0.57 PCT, and the company’s expenses remained stable during the period. The net operating cash flow of the company was 265 million yuan, a year-on-year increase of + 41.10%. The company’s revenue in 2022q1 was 265 million yuan, a year-on-year increase of 14.98%; The net profit attributable to the parent company was 62 million yuan, a year-on-year increase of 18.92%. Business target of the company in 2022: revenue of 1.243 billion yuan, with a year-on-year increase of 9.81%; The net profit attributable to the parent company was 321 million yuan, a year-on-year increase of 11.81%.
Breakthroughs were made in multi business sectors. In terms of business, the revenue of equipment manufacturing industry (main engine plant) / petrochemical industry / coal chemical industry / mining machinery was RMB 559 / 3.34/0.98/51 million, with a year-on-year change of + 28.39% / + 33.14% / + 20.77% / + 7.05%. In terms of sub sectors, in the broad mechanical seal sector, the company has obvious advantages. China’s new projects have evolved into the competition between the company and two international leaders, John Crane and Iger Bergman. At the same time, the stock business has basically returned to the pre epidemic level; In the rubber and plastic sealing sector, the market position of its subsidiary youtaike was improved, the proportion of high value-added products was increased, and the profitability of the sector was improved. At the same time, the overseas business was expanded smoothly, with a year-on-year increase of overseas revenue of more than 20% in 2021; In the special pump and valve sector, the company’s rotary jet pump business has grown steadily, accounting for the first place in China. The subsidiary xindiper is consolidated. Xindiper is mainly engaged in special valve business and has obvious competitive advantages in the field of oil and gas transportation. It has won many major projects and has become the supplier of Saudi Aramco, the world’s largest petrochemical enterprise.
Domestic substitution of nuclear power seals was accelerated, and the construction of oil and gas transmission was accelerated. In terms of nuclear power, the new orders signed by the company exceeded 70 million yuan, a record high, mainly including: 1) signing spare parts and domestic replacement orders with nuclear power in operation; 2) Sign orders for mechanical seals for nuclear secondary and tertiary pumps with new units; 3) The dynamic and static pressure shaft seals of the company’s nuclear main pump have passed the appraisal, breaking the foreign monopoly. At present, the company has obtained the order of static pressure shaft seal of nuclear main pump. The company’s nuclear power business has entered the “fast lane”, which will become a strong support for the company’s future performance growth. In the field of oil and gas transmission, the company expects to accelerate the construction of long-distance natural gas transmission pipelines in 2022, which will drive the demand for dry gas sealing products of the company. It is expected that the field of oil and gas transmission will be an important source of revenue growth of the company in the future.
Risk warning: the investment in petrochemical field is less than expected; Breakthroughs in new fields are less than expected; Industry competition intensifies.
Investment suggestion: the company is the leader of mechanical seal in China, with continuous breakthroughs in R & D and continuous enhancement of competitiveness. We expect the net profit attributable to the parent company in 202224 to be RMB 341 / 413 / 506 million, corresponding to pe20 / 17 / 13 times. It is covered for the first time and rated as “buy”.
