\u3000\u3 Jiangsu Eastern Shenghong Co.Ltd(000301) 029 Dongguan Yiheda Automation Co.Ltd(301029) )
Core view
In 2021, the operating revenue increased by 49.03% year-on-year, and the net profit attributable to the parent company increased by 47.65% year-on-year. The company achieved a revenue of 1.803 billion yuan in 2021, with a year-on-year increase of 49.03%; The net profit attributable to the parent company was 401 million yuan, a year-on-year increase of 47.65%. The rapid growth of revenue and profit is mainly due to the strong demand of industrial automation equipment industry. The company continues to expand downstream application fields and customer coverage. In 2021, the gross profit margin / net profit margin of the company was 41.57% / 22.22% respectively, with a year-on-year change of -2.28 / – 0.21 PCT. The profitability was under short-term pressure, mainly due to the rise in the price of raw materials, and the adjustment of accounting policies transferred the freight and packaging expenses from sales expenses to operating cost accounting. The company’s expense control is basically stable. In 2021, the sales / management / R & D / financial expense rates were 4.89% / 6.57% / 3.67% / – 0.37% respectively, with a year-on-year change of -2.37 / + 0.05 / – 0.43 / – 0.09 PCT. In the first quarter of 2022, the company achieved a revenue of 487 million yuan, a year-on-year increase of 52.60%; The net profit attributable to the parent company was 101 million yuan, a year-on-year increase of 63.72%. In the first quarter, the revenue performance increased rapidly, showing strong growth toughness under the pressure of the manufacturing industry.
Build core barriers through one-stop service and be optimistic about the long-term development potential of China’s leading FA parts. In terms of downstream industries, the revenue of 3C / new energy / Automobile / photovoltaic / industry Siasun Robot&Automation Co.Ltd(300024) industry in 2021 was 4.63/4.65/187/0.96/081 billion yuan, with a year-on-year increase of 64.48% / 146.61% / 5.60% / 76.82% / 37.94%, accounting for 25.69% / 25.79% / 10.38% / 5.30% / 4.49%, and the new energy and 3C business grew rapidly. According to the sales model, the company’s online / offline revenue in 2021 was 508 / 1295 million yuan respectively, with a year-on-year increase of 164.10% / 27.29%, accounting for 28.17% / 71.83%. The online revenue increased rapidly, and the proportion of revenue increased by 12.28 PCT year-on-year. The company adhered to the market strategy of “offline + online”, and the customer viscosity further increased. By the end of 2021, the company had developed more than 1.1 million SKUs, with a year-on-year increase of about 22.22%, further enriching the product system. In 2021, the order processing volume reached 760000 orders, with a year-on-year increase of about 38.18%. The total number of shipments was 3.3 million, with a year-on-year increase of about 42.86%. The advantages of supply chain management and platform operation are strong. In 2021, the number of customers was 28900, with a year-on-year increase of 24.03%. It has accumulated profound brand and customer resources in the customer group of engineers. As the leader of FA parts in China, the company is expected to usher in long-term development opportunities under the general trend of manufacturing upgrading and popularization of industrial automation in China.
Risk warning: downstream demand is less than expected; The expansion of new fields is less than expected; Industry competition intensifies.
Investment suggestions:
The company is the leader of FA parts in China, with one-stop service ability and strong competitive barriers, which is expected to benefit from the growth of industrial automation industry for a long time. Considering the strong growth toughness of the company under the pressure of the manufacturing industry, we maintain the profit forecast. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 616 / 850 / 1140 million, corresponding to EPS of RMB 1.54/2.13/2.85 and PE of 43 / 31 / 23 times, maintaining the “overweight” rating.
