\u3000\u3 China Vanke Co.Ltd(000002) 381 Zhejiang Double Arrow Rubber Co.Ltd(002381) )
Event:
On April 28, 2022, the company released the first quarterly report of 2022: in 2022q1, the company achieved a revenue of 481 million yuan, a year-on-year increase of + 27.62% and a month on month decrease of - 17.45%; The net profit attributable to the parent company was 324815 million yuan, a year-on-year increase of - 43.83% and a month on month increase of + 247.24%; The net profit of non parent company deduction was 301582 million yuan, with a year-on-year increase of - 40.59% and a month on month increase of 302395 million yuan; The net cash flow from operating activities was 772128 million yuan, a year-on-year increase of + 25.11% and a month on month increase of + 5.65%.
Key investment points:
In the first quarter, the revenue decreased month on month, and the net profit attributable to the parent company increased month on month
In 2022q1, the company achieved a revenue of 481 million yuan, a year-on-year increase of + 27.62% and a month on month increase of - 17.45%; The net profit attributable to the parent company was 324815 million yuan, a year-on-year increase of - 43.83% and a month on month increase of + 247.24%; The decline in revenue month on month is due to the impact of the epidemic and the Spring Festival on the demand of downstream enterprises. The net profit attributable to the parent company increased month on month, mainly due to the decline of sea freight and the increase of product gross profit margin.
The gross profit margin of sales was 17.04%, a year-on-year decrease of 9.05 percentage points and a month on month increase of 4.94 percentage points; The net sales interest rate was 6.72%, a year-on-year decrease of 8.59 percentage points and a month on month increase of 5.13 percentage points.
The sales expense ratio was 2.75%, a year-on-year decrease of 0.83 percentage points and a month on month decrease of 2.15 percentage points; The management expense ratio was 4.07%, a year-on-year decrease of 0.85 percentage points and a month on month increase of 2.12 percentage points; The R & D expense ratio was 2.36%, a year-on-year decrease of 0.85 percentage points and a month on month decrease of 0.63 percentage points; The financial expense rate was 0.20%, with a year-on-year increase of 0.50 percentage points and a month on month decrease of 1.73 percentage points. The year-on-year increase in the financial expense rate was due to the new interest on convertible bonds in the current period.
Sea freight dropped, releasing some profit space
According to Bloomberg, as of April 29, 2022, the FBX index from China to the west of the United States was US $1555180/feu, down 13.46% from the beginning of October 2021; The FBX index from China to Europe was US $1163770/feu, down 20.85% from the beginning of October 2021; The FBX index from China to the east of the United States was $1714970/feu, down 17.65% from the beginning of October 2021. The drop in the high level of sea freight has increased the price advantage of export products of Chinese conveyor belt enterprises and released some profit space.
Actively promote the application of new scenarios
On the basis of consolidating the existing market share, the company actively explores new sales channels and markets and continues to improve the market share. Seizing the track in the incremental market, the company vigorously promotes the long-distance conveyor belt project, provides the overall solution of intelligent material conveying system, and solves the all-round needs of customers from products to services.
With the continuous expansion of production capacity, the market share is expected to increase
At present, the company has built a conveyor belt production capacity of 75 million square meters / year, with a market share of about 13%. The company's strategy is to double the production capacity and market share during the 14th Five Year Plan period, that is, the production capacity will reach 150 million square meters / year. At present, Tongxiang Desheng's annual output of 15 million square meters of high-strength steel wire rope core conveyor belt has entered the final commissioning and trial production stage, and tiantaisheng's annual output of 60 million square meters of fabric core conveyor belt is about to complete the planning and design and enter the construction period. The launch of new production capacity is expected to help the company improve the market share and expand the economies of scale.
The profit forecast and investment rating predict that the net profit attributable to the parent company from 2022 to 2024 will be 213, 364 and 477 million yuan respectively, and the PE will be 11, 7 and 5 respectively, giving a "buy" rating.
Risk warning: raw material price fluctuation risk; Product demand is less than expected; The construction progress of the project is less than expected; The transmission of cost pressure lags behind; Sea freight prices are rising.
