\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 580 Wolong Electric Group Co.Ltd(600580) )
Performance summary: the company achieved an operating revenue of 13.999 billion yuan in 2021, with a year-on-year increase of 11.41%; The net profit attributable to the parent company was 988 million yuan, a year-on-year increase of 13.96%; The net profit deducted from non parent company was 441 million yuan, a year-on-year decrease of 34.39%, which was due to the increase of profit and loss on the disposal of non current assets; EPS is 0.76 yuan. In the first quarter of 2022, the revenue was 3.527 billion yuan, a year-on-year increase of 18.02%; The net profit attributable to the parent company was 198 million yuan, a year-on-year increase of 50.46%.
The expense rate has decreased steadily, and the profit is expected to recover. In 2021, the company’s gross profit margin was 22.62%, a year-on-year decrease of 1.84pp. Affected by the price rise of raw materials, the cost side was under pressure; The company’s net interest rate was 7.55%, up 0.21pp year-on-year. Among them, the rates of sales / management / Finance / R & D expenses were -0.46pp / – 0.8pp / – 0.46pp / + 0.49pp year-on-year respectively. The company increased R & D investment, and the three rates were well controlled. In the first quarter of 2022, the company’s gross profit margin was 22.03%, a year-on-year decrease of 2.38pp; The net interest rate was 5.78%, with a year-on-year increase of 1.04pp. We believe that the company’s product drive control integration layout is in-depth, and the technology R & D system is further improved, which is expected to make up for the impact of macro factors through technology cost reduction.
The company’s operation is in good condition, and the volume and price of all products have increased at the same time. Industrial motor and drive: in 2021, the sales volume increased by 3.5% year-on-year, and the average selling price was 277.70 yuan / kW, with a year-on-year increase of 3.01%; Daily motor and control: in 2021, the sales volume increased by 6.67% year-on-year, and the average selling price was 61.02 yuan / set, with a year-on-year increase of 19.87%; Electric transportation: in 2021, the sales volume increased by 61% year-on-year, and the average selling price was 99.25 yuan / kW, with a year-on-year increase of 11.53%. Thanks to the high boom of new energy vehicles, the sales volume achieved rapid growth. All businesses of the company have achieved the same increase in volume and price, indicating that the company, as the leader of China’s industrial motor industry, enjoys certain bargaining power and provides guarantee for performance growth.
Bind high-quality downstream customers and achieve breakthroughs in electric transportation business. Passenger cars: achieve breakthroughs in key customers such as Xiaopeng, Geely and Wuling; Commercial vehicles: expand the business of Yutong, Sany and other subdivided fields; Electric aviation: the company obtained the first batch of orders from customers of a central enterprise to achieve double breakthroughs in new products and new markets. In addition, the company took the lead in preparing airworthiness standards for electric propulsion system of electric aircraft to enhance the popularity of electric aviation. We believe that the company has made breakthroughs in many fields by giving play to technical synergy, and track widening has helped the company develop steadily.
Profit forecast and investment suggestions. It is estimated that the company’s revenue from 2022 to 2024 will be 16.033 billion yuan, 17.945 billion yuan and 20.146 billion yuan respectively, and the net profit attributable to the parent company will maintain a compound growth rate of 14.94% in the next three years. The company’s new energy vehicle business has been designated by a number of customers, actively layout and expand the commercial territory, and maintain the “buy” rating.
Risk tips: macroeconomic risks; Market competition risk; Risk of price fluctuation of raw materials; Exchange rate changes and international trade environment risks.
