\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 37 Keshun Waterproof Technologies Co.Ltd(300737) )
Event: ① the company released the 21fy and 22q1 financial reports. In the 21st year, the company achieved revenue of 7.77 billion yuan, yoy + 24.6%, net profit attributable to parent company of 670 million yuan, yoy-24.5%, net profit attributable to non parent company of 570 million yuan deducted, yoy-35%. The performance was lower than the median value of the previous performance express. In 22q1, the company achieved revenue / net profit attributable to parent company / net profit attributable to parent company of 17.3/1.0/0.8 billion yuan, yoy + 18.7% / – 40.8% / – 49.2%. ② The company plans to issue 2.2 billion yuan of convertible bonds, which are mainly used for the production expansion projects of waterproof materials in Anhui, Fujian and Chongqing. A total of 137 million / 26 million square meters of asphalt based waterproof coiled materials / polymer waterproof coiled materials and 255000 tons of waterproof coatings are expanded.
The distribution business of fali has achieved remarkable results, and the high cost has been alleviated
In 21 years, the revenue of waterproof coiled material / coating / construction was 4.55/16.8/1.53 billion yuan respectively, yoy + 12.2% / + 46.2% / + 54.4% respectively. The sales volume of waterproof materials of 21fy company is 460 million square meters (including coating conversion), yoy + 29.5%. Dealers increased by more than 17% year-on-year, among which the business expansion of civil construction achieved remarkable results and achieved a high growth rate of 62%. At the same time, the company continued to increase its support for dealers (guarantee amount + term). We expect the proportion of distribution business to continue to increase. In the past 21 years, the gross profit margin of the company’s sales was 28.5%, with a year-on-year rate of -8.4pct, of which the gross profit margin of coiled material / coating / construction was -6.6 / – 13.1 / – 7.1pct year-on-year; The gross profit margin of 22q1 company was 25.7%, with a year-on-year increase of -6.4pct and a month on month increase of + 3.6pct. 22q1 asphalt price is + 22.7% year-on-year and + 8.6% month on month. We believe that the company can hedge part of the cost pressure by reducing cost and increasing efficiency and raising the price at the distribution end. In the future, if the price of raw materials stabilizes or decreases, the profitability of the company has a large room for improvement.
21fy has good management and control of operating cash flow and stable expense rate during the period
The expense rate of 21fy company during the period was 14.74%, with a year-on-year decrease of 0.36pct, of which the expense rates of sales / management / R & D / finance were -0.15 / – 0.18 / – 0.14 / + 0.11pct respectively year-on-year. To sum up, 21fy company achieved a net interest rate of 8.66%, a year-on-year decrease of 5.61pct. In terms of cash flow, the CFO in 21 years was 611 million yuan, with a year-on-year increase of 59 million yuan. The cash payment ratio of the company in 21 years was 85.47%, with a year-on-year decrease of 15.40pct.
22q1 net interest rate was 5.7%, down 5.7pct year-on-year. 22q1 CFO was – 1.1 billion yuan, with a year-on-year outflow of 830 million yuan, mainly due to the decrease in payment received and the increase in payment for procurement. 22q1 cash ratio was 68.5%, a year-on-year decrease of 27.6pct, cash ratio 137.8% and a year-on-year increase of 26.3pct. With the easing of funds in the real estate industry chain, we expect the cash ratio to rise.
Continuous expansion of production and equity incentive show confidence in medium and long-term development
According to the investment announcement in November 2021 and the production expansion of the convertible bond announcement, the company will add a total annual production capacity of 273 million square meters of waterproof coiled materials and 395000 tons of paint + dry powder mortar in the future. The company announced the equity incentive plan in November of 21. Based on 21 years, the growth rate of non deduction performance in 22-24 years is not less than 25% / 56% / 95%, and the net operating cash flow is greater than zero. The actual controller guarantees the annualized return of 8% of its own funds, demonstrating the management’s confidence in future business development.
Investment suggestion: we slightly adjust the company’s performance according to the operation of 21q1. It is estimated that the company’s net profit attributable to the parent company in 22-24 years is RMB 1 / 12.9/1.65 billion (the previous value was RMB 1.18/1.56 billion in 22-23 years), corresponding to pe12 / 9 / 7 times, maintaining the “buy” rating.
Risk tip: the new construction of real estate is lower than expected, the asphalt price rebounds sharply, and the cash flow deteriorates significantly
