\u3000\u3 China Vanke Co.Ltd(000002) 706 Shanghai Liangxin Electrical Co.Ltd(002706) )
Event overview: on April 28, the company released the annual report of 2021 and the first quarterly report of 2022. In 2021, the company achieved a revenue of 4.027 billion yuan, a year-on-year increase of + 33.50%; The return to the parent was 419 million yuan, a year-on-year increase of + 11.47%; Deduct 390 million yuan of non return to parent, a year-on-year increase of + 11.91%; The basic earnings per share is 0.42 yuan. The year-on-year revenue of the parent company was + 7.2 billion yuan, with a year-on-year revenue of + 1.201 billion yuan; Deduction of non return to parent company was 72 million yuan, a year-on-year increase of + 15.64%, and the basic earnings per share was 0.07 yuan.
22q1 gross profit margin and net profit margin rose month on month, and profitability is expected to improve steadily. Affected by factors such as the rise in the price of bulk commodities, the company’s gross profit margin increased from -2.46ptcs to 35.21% year-on-year in 21 years. 22q1 company responded to the cost pressure by strengthening the supply chain management of large b-end customers. The gross profit margin increased by 0.53ptc to 33.18% month on month, and actively controlled the expense side. During the period, the company’s expenses decreased significantly month on month, the rate of sales, management and R & D expenses improved, and the net profit margin increased by 3.01ptcs to 9.01% month on month, The company’s cost control measures such as cost control and supply chain optimization are taking effect, and its profitability is expected to rise to a reasonable level in the future.
The revenue side of each sector has maintained rapid growth, and the laying of distribution channels has achieved initial results. In 21 years, the company’s terminal appliances / distribution appliances achieved revenue of 1.376 billion yuan and 2.053 billion yuan respectively, with a year-on-year growth rate of + 41.56% / 34.96%. In terms of downstream, new energy and new energy vehicles have achieved rapid growth, and the company’s cooperation with leading customers such as Huawei and sunshine is stable; Engineering construction, public and commercial construction and other downstream companies performed well. Companies in the real estate field increased their efforts to expand high-quality customers such as state-owned enterprises, central enterprises and local urban investment. In the future, real estate related businesses are expected to maintain stable growth. In the 21st year, the company’s distribution channels achieved a revenue of 2.856 billion yuan, a year-on-year increase of + 38.17%, and the proportion of distribution channels in the revenue has increased to 71%. In the future, the company will benefit from binding leading customers in key industries + vigorously expanding distribution channels to contribute to the increment, and the performance is expected to accelerate the growth.
Haiyan base will be put into operation soon, and the integrated layout will improve quality and increase profits. Previously, the company imported parts suppliers in the early stage of production, mainly purchasing the processed basic parts for production. In order to further reduce the cost, the company invested in the construction of Haiyan base in 2019 for self-made parts. Haiyan project 4.0 intelligent manufacturing base 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. At present, the main structure of the plant has been completed, The remaining work is mainly equipment procurement, installation, etc. Haiyan digital will improve the company’s self supply proportion of raw materials and efficient product delivery capacity, and help the company achieve high efficiency and cost reduction.
The net income of the parent company is expected to grow by 2.452 billion yuan and 3.452 billion yuan respectively in 2024, and the net profit of the parent company is expected to grow by 3.452 billion yuan and 3.452 billion yuan respectively in 2024; The net profit attributable to the parent company was 568 million yuan, 807 million yuan and 1.164 billion yuan respectively, with growth rates of 35.6%, 42.2% and 44.2% respectively. Corresponding to the closing price on April 29, the 22-24 year valuation of the company is divided into 19x, 13X and 9x. Maintain a “recommended” rating.
Risk warning: the risk of commodity price rise exceeding expectations; Risks of intensified industry competition; The risk of epidemic spread exceeding expectations; Risks of exchange rate fluctuations exceeding expectations, etc.
