\u3000\u3 Shengda Resources Co.Ltd(000603) 081 Zhejiang Dafeng Industrial Co.Ltd(603081) )
Event: in 2021, the company achieved a revenue of 2.96 billion yuan, an increase of 17.9% at the same time; The net profit attributable to the parent company was 390 million yuan, an increase of 24.6% at the same time; The net profit after deducting non-profit was 370 million yuan, an increase of 27.7% at the same time. In Q1 2022, the company achieved a revenue of 460 million yuan, an increase of 9.30% at the same time; The net profit attributable to the parent company was 70 million yuan, an increase of 6.1% at the same time.
Comments:
Rail transit equipment revenue returns to high growth and performance reaches a new high:
In 2021, the company’s revenue from sports and sports science and technology equipment / digital art science and technology / rail transportation equipment / other business was 24.9/1.8/2.1/0.7 billion yuan respectively, with a same increase of 14.5% / 28.1% / 49.7% / 73.1%. Among them, the rapid growth of rail transit equipment business is mainly due to the rapid growth of revenue of rail interior products. The performance of rail transit equipment of the company reached a new high, established certain advantages in the field of high-end rail transit equipment manufacturing, and extended its business to the field of military industry. Expand the mode of cultural media and realize the two wheel drive mode of “innovation and technology of cultural tourism + enabling service of cultural tourism”. With the steady development of digital arts technology, it has continuously promoted the upgrading of its own innovation ability, explored the expansion of business boundaries, and won many well-known projects in terms of scenic spot cultural tourism integration and urban cultural complex.
The margin of profitability recovered, and the expense rate improved slightly during the period:
In 2021, the company’s comprehensive gross profit margin was 30.4%, with an increase of – 0.2pct, mainly due to the significant increase in the outsourcing cost of the company’s special equipment. The gross profit margin of sports science and technology equipment / digital art science and technology / rail transportation equipment / other businesses was 29.9% / 43.6% / 34.2% / 3.8% respectively, with an increase of 0.6pct / – 0.2pct / – 0.1pct / – 41.5pcts respectively. In 2022q1, the company’s comprehensive gross profit margin was 33.8%, with a year-on-year ratio of -1.4pcts and a month on month ratio of + 8.8pcts. It is expected that with the optimization of project management and the increase of the proportion of digital art business, the profitability of the follow-up company still has room for upward correction. In 2021, the company’s comprehensive period expense rate was 13.7%, with an increase of – 0.3pct, of which the sales / management / R & D / financial expense rate was 3.1% / 5.6% / 4.2% / 0.9% respectively. The sales and R & D expense rate decreased slightly, and the management and financial expense rate increased slightly.
Under the influence of accounting standards, the net operating cash flow decreased significantly:
In 2021 and 2022q1, the net operating cash flow inflow of the company was – 360 / – 320 million yuan respectively, a decrease of 570 / 170 million yuan respectively compared with the same period of the previous year, which was mainly due to the implementation of the interpretation of Accounting Standards No. 14 by the company, and the expenditure of PPP construction was disbursed as operating cash outflow; If the explanatory net cash flow of RMB 2020.3 billion and RMB 2022.3 billion are excluded, the operating net cash flow of RMB 2021.3 billion and RMB 2021.2 billion are respectively. The net cash flow generated by the company’s financing activities in 2021 was 950 million yuan, an increase of 204.4%, mainly due to the increase of long-term loans (the large increase of long-term loans is mainly due to the needs of the company’s business development and the increase of borrowed funds for PPP projects). With the company actively expanding to the upstream and downstream of the cultural tourism industry chain and expanding its comprehensive business scope, the company’s project settlement increased, and the growth of accounts receivable was more obvious. The accounts receivable increased by 49.3% in 2021.
Profit forecast, valuation and rating: the company is the leader in the field of intelligent stage in the subdivided industry of Chinese culture sector, and its business has expanded steadily. In the past 21 years, the revenue of the three main businesses has maintained a high growth rate, and the revenue of rail transit equipment has returned to a high growth; The margin of the company’s profitability recovered, and the expense rate improved slightly during the period. The forecast of net profit attributable to the parent company for 22-23 years was raised to RMB 451 million and RMB 495 million (the original forecast was RMB 428 million and RMB 482 million, which were increased by 5.4% and 2.7% respectively this time). The forecast of net profit for 24 years was increased by RMB 601 million, and the current price corresponding to 22-year PE was 9.6x, maintaining the rating of “overweight”.
Risk tip: the prices of raw materials and labor are rising, the policy support is weaker than expected, and the prosperity of the industry is lower than expected.
