\u3000\u30 Beijing Jingyeda Technology Co.Ltd(003005) 99 Guangdong Xiongsu Technology Group Co.Ltd(300599) )
Investment summary
Event overview
On April 26, the company released its 2021 annual report. In 2021, the company achieved an operating revenue of 2.358 billion yuan, a year-on-year increase of 13.96%, and a net profit attributable to the parent company of 111 million yuan, a year-on-year decrease of 47.74%.
The rise in the price of main raw materials affects profits. In 2021, the company continued to increase marketing investment, and the operating revenue increased by 13.96% year-on-year; As the rising prices of main raw materials and the increasing pressure of market competition drag down the company's profits, the company's gross profit margin in 2021 was 15.93%, a decrease of 7.56pct compared with the same period in 2020. The gross profit margins of PVC, PPR and PE were 14.25% / 31.78% / 13.79% respectively, down 8.45pct/1.46pct/5.99pct compared with the same period of the previous year.
Yunnan xiongsu has been completed and put into operation, and plans to increase investment projects to expand production capacity. At present, the annual production capacity of the company is about 470000 tons. It has six production bases in Guangdong, Guangxi, Henan and Jiangxi. The project with an annual output of 70000 tons in Yunnan was completed and put into operation at the end of 2021, which meets the strategic demands of the company based on the Southwest market and advancing into Southeast Asia. Guangdong xiongsu and Guangxi xiongsu plan to add new investment projects, focusing on expanding production capacity in municipal pipelines and improving the company's business undertaking capacity.
Aim at the new opportunities of municipal construction and develop new products to meet a variety of application scenarios. The company has increased investment in the research and development of municipal pipelines and expanded the categories of municipal pipeline products. At present, it has developed a variety of PE Series pipelines, and the products can be used in a variety of application scenarios of municipal engineering business. The company has established a direct selling department to serve the municipal engineering business, focusing on key customers and core business areas.
Investment advice
Aiming at the new opportunities of municipal construction, the company increased the investment in municipal pipeline business and steadily promoted the acquisition of Kangtai group. It is estimated that the operating revenue from 2022 to 2024 will be RMB 2665 / 3082 / 3413 million, with a year-on-year increase of 13% / 15.7% / 10.7%; The net profit attributable to the parent company was 191 / 253 / 301 million yuan respectively, with a year-on-year increase of 72.1% / 32.5% / 18.9%, and EPS was 0.53/0.71/0.84 yuan / share respectively. Corresponding to the stock price on April 28, PE was 15x / 11x / 9x respectively, maintaining the "buy" rating.
Risk tips
Capacity expansion is less than expected; The promotion of major asset restructuring is less than expected; Risk of sharp rise in raw material prices.
