\u3000\u3 Guocheng Mining Co.Ltd(000688) 028 Beijing Worldia Diamond Tools Co.Ltd(688028) )
Events: (1) the company released its 2021 annual report, and achieved a revenue of 326 million yuan in 21 years, with a year-on-year increase of 34.73%; The net profit attributable to the parent company was 54.45 million yuan, a year-on-year increase of 10.02%. The company also issued the profit distribution plan for the year of 21, and plans to distribute a cash dividend of 1.90 yuan (including tax) to all shareholders for every 10 shares.
(2) the company released the first quarterly report of 2022, and the revenue in Q1 was 68.96 million yuan, a year-on-year decrease of 1.18%; The net profit attributable to the parent company was 7.15 million yuan, a year-on-year decrease of 55.56%.
Accelerating the development of overseas markets is expected to maintain rapid growth. In the past 21 years, the company’s high-precision cutting tool business achieved a revenue of 183 million yuan, with a year-on-year increase of 42.55%, mainly due to 1) the recovery of the prosperity of the automobile industry; (2) Wind power and other industries have achieved certain market breakthroughs. At present, the company has accelerated the promotion of overseas business. With the gradual release of production capacity, the high-precision tool business is expected to continue to maintain rapid growth.
The new business is put into operation, resulting in an increase in expenses during the period. The gross profit margin of 21q4 / 22q1 company was 46.19% / 50.17% respectively, with a year-on-year change of -2.62pct/0.22pct respectively. The gross profit margin fluctuated slightly, but remained at a high level. The rates of 21q4 / 22q1 company during the period were 40.3% / 36.6% respectively, with a year-on-year increase of 2.55pct/12.36pct respectively, among which the R & D and management expenses increased significantly. In the past 21 years, the company has launched many new projects (New cemented carbide cutting tools, diamond cultivation and diamond business), increased investment in R & D and personnel allocation, resulting in an increase in the rate in the short term; It is expected that in the future, as new businesses begin to contribute revenue, the expense side will be optimized.
Profit forecast and investment suggestions: it is estimated that the company’s revenue from 2022 to 2024 will be 484 million yuan, 707 million yuan and 936 million yuan respectively, and the net profit attributable to the parent company will be 82 million yuan, 133 million yuan and 189 million yuan respectively, corresponding to EPS of 103 million yuan, 166 million yuan and 237 million yuan respectively. Maintain the “buy” rating, and the six-month target price is 33.99 yuan, which is equivalent to 33 times the dynamic P / E ratio in 2022.
Risk tip: the investment in manufacturing industry is less than expected, and the customer expansion and capacity release are less than expected.
