\u3000\u3 Guocheng Mining Co.Ltd(000688) 006 Zhejiang Hangke Technology Incorporated Company(688006) )
Key investment points
2022q1 performance + 80.2% year-on-year, deducting non performance + 86.7% year-on-year: in 2021, the company achieved a total operating revenue of 2.483 billion yuan, a year-on-year increase of + 66.3%; The net profit attributable to the parent company was 235 million yuan, a year-on-year increase of – 36.8%; Net profit deducted from non parent company was 166 million yuan, a year-on-year increase of – 47.9%. In 2022q1, the company achieved a total operating revenue of 797 million yuan, a year-on-year increase of + 155.4%; The net profit attributable to the parent company was 94 million yuan, a year-on-year increase of + 80.2%; Deduction of net profit not attributable to parent company was 86 million yuan, a year-on-year increase of + 86.7%.
The gross profit margin of the single quarter rebounded month on month, and the expenses during the period were well controlled: in 2021, the gross profit margin of the company was 26.2%, with a year-on-year increase of – 22.2pp. In 2022q1, the company’s gross profit margin was 30.3%, with a year-on-year increase of -9.4pp and a month on month increase of + 13.5pp. In terms of period expense rate, the sales expense rate in 2021 was 1.9%, with a year-on-year increase of -2.5pp; The management expense ratio was 8.1%, with a year-on-year increase of -1.4pp; The financial expense ratio was 1.7%, year-on-year + 2.4pp; The R & D expense ratio was 5.3%, with a year-on-year increase of -1.7pp; The total period expense rate was 17%, year-on-year – 3.2%. In 2022q1, the sales expense ratio was 3.0%, year-on-year -1.7pp; The management expense ratio was 10.2%, with a year-on-year increase of -2.1pp; The financial expense ratio was 0.9%, year-on-year -1.9pp; The R & D expense ratio was 4.6%, with a year-on-year increase of -3.5pp; The total period expense rate was 18.8%, year-on-year -9.2pp.
Deeply benefiting from the production expansion progress of Korean major customers, the profitability is expected to continue to repair: the production expansion progress of overseas battery plants delayed by the epidemic is continuing to advance. LG plans to increase its global production capacity to 200 GWH by the end of this year and 520 GWH by 2025. Previously, SK also said that the planned capacity of production expansion in 2025 will reach more than 100GWh. The company deeply binds Korean major customers and continues to win large orders from SK, the United States, Hungary and Yancheng, China, which is expected to deeply benefit from the production expansion progress of Korean major customers. In addition, the company actively adjusted the pre impact of digestion costs. In the future, with the continuous upward proportion of high gross profit orders, the profitability is expected to continue to repair. It continues to be optimistic about the bottom of valuation and actively cashing in the profit of lithium battery equipment.
Profit forecast and investment suggestion: the general trend of global electrification is irresistible, and the expansion of downstream battery plants is flexible and sustainable. As the global leader of lithium battery equipment, the company is expected to continue to benefit. The company actively deployed overseas and further opened up growth space. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 540 million yuan, 1 billion yuan and 1.43 billion yuan, corresponding to pe33, 18 and 12 times, maintaining the “buy” rating.
Risk tip: the expansion of overseas battery plants is lower than expected, the risk of product and technology iteration and renewal, and the change of competition pattern
