\u3000\u3 Guocheng Mining Co.Ltd(000688) 559 Shenzhen Hymson Laser Intelligent Equipments Co.Ltd(688559) )
Event: the company released its 2021 annual report and the first quarterly report of 2022. Among them, the revenue in 2021 was 1.984 billion yuan, a year-on-year increase of 50.26%, and the net profit attributable to the parent company was 109 million yuan, a year-on-year increase of 41.14%; In the first quarter of 2022, the revenue was 447 million yuan, a year-on-year increase of 254.45%, and the net profit attributable to the parent was 11 million yuan, a year-on-year increase of 149.29%.
The scale of revenue increased rapidly and the profitability was significantly enhanced
(1) growth analysis: in 2021, the company’s revenue increased by 50.26% year-on-year; The net profit attributable to the parent company increased by 41.14% year-on-year. In the first quarter of 2022, the company’s revenue increased by 254.45% year-on-year, and the net profit attributable to the parent company increased by 149.29% year-on-year. The profit growth of the company is slower than the revenue growth, mainly because the company confirmed that the share based payment fee was 435689 million yuan in 2021. As of December 31, 2021, the orders on hand were about 5.1 billion yuan (including tax), with a year-on-year increase of about 200%. Sufficient orders on hand effectively guaranteed the high growth expectation of the company’s performance in 2022.
(2) profitability analysis: the company’s gross profit margin in 2021 was 24.92%, down 3.28 PCT year-on-year, mainly due to the increase in the proportion of power battery equipment with low gross profit margin, and the cost front caused by the rapid expansion of production capacity and personnel. In the first quarter of 2022, the company’s gross profit margin was 33.61%, an increase of 2.47 PCT year-on-year; The net profit margin on sales was 2.37%, turning losses into profits. Excluding the impact of share incentive expenses, the net interest rate in the first quarter of 2022 is 6.6%, and the net interest rate in the whole year of 2021 is 7.7%; Considering the seasonal factors of Q1, we believe that the profitability of the company is on the rise as a whole.
(3) continuously increase R & D Investment: in 2021, the company invested 158 million yuan in R & D, a year-on-year increase of 47.54%. In the first quarter of 2022, the company invested 57 million yuan in R & D, a year-on-year increase of 122.89%. The company continued to increase its R & D efforts in the new energy industry, 3C consumer electronics industry and photovoltaic industry. A number of R & D work reached the expected objectives and achieved fruitful R & D results.
The leader of lithium laser equipment has fully benefited from the expansion of industry production and the development of new technologies. In recent years, lithium battery equipment has ushered in a wave of rapid production expansion. The industry’s production expansion plan will reach 330gwh in 2021 and is expected to exceed 500gwh in 2022. As the leader of lithium battery laser equipment in China, the company is expected to fully benefit from this round of lithium battery equipment expansion. The company’s core products, high-speed laser film maker and electric core assembly line dominated by welding, are in the leading position in the industry, and received the letter of acceptance from China Innovation airlines and its holding subsidiaries on April 24, 2022, with a bid winning amount of 1.36 billion yuan (including tax). In addition, the company obtained the order of Tesla‘s high-speed laser producer in 2019, which is applied to the laser die cutting of Tesla‘s 4680 cylindrical batteries. As the only supplier of Tesla‘s equipment in China, the company’s lithium battery business is expected to fully benefit from the development of new technologies for 4680 cylindrical batteries in the industry.
Major breakthroughs have been made in the photovoltaic equipment business, which is expected to become the second growth curve of the company. Relying on the core technology of laser self-development, the company lays out the field of photovoltaic laser equipment, and develops laser slotting equipment, laser doping equipment, nondestructive laser splitting equipment, etc. for perc, TOPCON and hjt cell technologies. The company won the order of 1.067 billion yuan for TOPCON laser micro loss equipment of Jingke energy on April 15, 2022, which is also a strong confirmation of the company’s outstanding competitiveness in the field of photovoltaic equipment. Considering the self-made laser, TOPCON laser micro loss equipment is more profitable than lithium battery equipment, and is expected to become the second growth curve of the company.
Deep ploughing in the laser and automation equipment industry, the platform attribute is beginning to appear. Since its establishment, 3C laser and sheet metal automation companies have initially formed the properties of laser and sheet metal automation companies. In the future, the company will accelerate the layout and breakthrough in lithium battery and photovoltaic equipment business on the basis of maintaining the stable development of 3C and sheet metal business, and the overall performance and profitability of the company are expected to be further improved.
Maintain the “overweight” rating. In 2022, the photovoltaic cell industry entered the year of TOPCON. The company’s TOPCON laser micro loss equipment has strong competitiveness and great performance flexibility. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 330 million yuan, 974 million yuan and 1474 million yuan, and the corresponding PE will be 32.4/11.0/7.3 times respectively, maintaining the rating of “overweight”.
Risk tip: the expansion of power battery industry is less than expected, the profitability of photovoltaic equipment orders is less than expected, and the company’s order taking progress is less than expected.
