\u3000\u3 Guocheng Mining Co.Ltd(000688) 559 Shenzhen Hymson Laser Intelligent Equipments Co.Ltd(688559) )
Event: the company released its 2021 annual report, achieving an operating revenue of 1.984 billion yuan, a year-on-year increase of 50.26%, and a net profit attributable to the parent company of 109 million yuan, a year-on-year increase of 41.14%. Among them, Q4 achieved a revenue of 958 million yuan, a year-on-year increase of 53.13%, and a net profit attributable to the parent company of 73 million yuan, a year-on-year increase of 70.82%.
In addition, the company released the first quarterly report of 2022. In Q1, the operating 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 there were abundant orders on hand. In the 21 year revenue structure, the revenue in the field of power batteries reached 1.112 billion yuan, a year-on-year increase of 128.75%; 3C consumer sector achieved a revenue of 467 million yuan, a year-on-year decrease of 2.05%; The income of sheet metal business was 257 million yuan, a year-on-year decrease of 6.86%. In terms of orders, new orders signed in 2021 were about 5.7 billion yuan (including tax), a year-on-year increase of about 128%; 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%. In addition, as of April 28, 2022, the company has signed new orders of about 2.077 billion yuan (including tax), of which the contract amount of about 1.258 billion yuan (including tax) has not been signed after receiving the letter of acceptance. Sufficient orders ensure the rapid growth of the company.
The improvement of profitability appeared, and the gross profit margin of 22q1 increased significantly. Quarterly, the comprehensive gross profit margin from 2021q1 to 2022q1 is 31.14%, 32.62%, 23.45%, 21.41% and 33.61% respectively. In 2022q1, the gross profit margin increased to a certain extent year-on-year and month on month. At the same time, the expense rate of the period improved significantly. The expense rate of the period of 21 years / 22q1 was 11.88% / 16.42% respectively, a year-on-year decrease of 2.46/16.04 percentage points; R & D continues to maintain high investment, and the R & D expense rates in 21 years / 22q1 are 7.96% / 12.67% respectively. As of the first quarter of 2022, the company’s inventory was 2.385 billion yuan, construction in progress was 269 million yuan and contract liabilities were 4.499 billion yuan, significantly increasing year-on-year and month on month, indicating that the company is in the stage of substantial expansion.
Breakthroughs have been made in the photovoltaic field to build a platform enterprise. The company has mastered the core technology of laser and automation, deeply explored the application needs, and actively built a platform company. On the basis of power cells, 3C consumer electronics and traditional sheet metal cutting, it breaks through the field of photovoltaic equipment again. In April 2022, the company obtained the order of TOPCON laser micro loss equipment with RMB 1.067 billion from Jingke energy, which is the first time for the company to obtain large-scale orders in photovoltaic laser and automation equipment. TOPCON technology is one of the mainstream development technologies of battery chips in the future. According to PV InfoLink, the cumulative capacity (including under construction) is expected to exceed 50gw by the end of 2022 and close to 80gw by the end of 2023. The company cooperates with Jingke energy, a leading enterprise, to lay a solid foundation for future development in the field of photovoltaic laser and automation equipment.
Profitability forecast and valuation. We continue to be optimistic about the future development of the company. It is estimated that the company’s revenue from 2022 to 2024 will be 4.212/68.16/8.443 billion yuan respectively, and the net profit attributable to the parent company will be 3.66/7.36/1.030 billion yuan respectively, corresponding to 29 / 15 / 10 times of PE.
Risk warning: downstream expansion is less than expected; The pattern of horizontal competition deteriorated, and the product promotion was less than expected.
