\u3000\u30 Beijing Telesound Electronics Co.Ltd(003004) 50 Wuxi Lead Intelligent Equipment Co.Ltd(300450) )
The pilot disclosed the annual report of 21 years, the net profit performance exceeded expectations, and the revenue growth rate of Q4 in a single quarter was close to 140%. The operating revenue of the company’s annual report of 21 years exceeded 10 billion yuan for the first time, reaching 10.037 billion yuan, with a significant year-on-year increase of 71.32%, of which the revenue of lithium battery intelligent equipment accounted for 69.30%; The net profit attributable to the shareholders of the listed company was 1.585 billion yuan, a year-on-year increase of 106.47%, deducting the net profit not attributable to the parent company of 1.532 billion yuan, a year-on-year increase of 117.83%. The performance of the company’s annual report exceeded expectations. The company’s Q4 single quarter revenue, net profit attributable to the parent and net profit deducted from non attributable to the parent were RMB 4089 million, 581 million and 558 million respectively, with a year-on-year increase of + 139.22%, 353.87% and 462.54% respectively.
In terms of business, the company’s Lithium Battery + intelligent logistics + other businesses showed a rapid growth of more than 90%, and the platform development was fruitful: the revenue of lithium battery equipment reached 6.956 billion yuan, a year-on-year increase of + 114.82%, the revenue of intelligent logistics equipment reached 1.056 billion yuan, a year-on-year increase of + 90.54%, and other businesses reached 834 million yuan, a year-on-year increase of 98.2%. The current revenue of the company’s photovoltaic and 3C intelligent equipment business was 600 million yuan and 591 million yuan respectively, with a year-on-year increase of – 44.64% and + 5.25%. We believe that it is mainly due to the significant growth of lithium battery and supporting intelligent logistics business and the priority to deliver lithium battery orders under the condition of limited production capacity.
The company’s annual gross profit margin was stable, the net profit margin / non net profit margin increased significantly year-on-year, and Titan’s net profit margin also rebounded significantly: the company’s annual gross profit margin reached 34.05%, the net profit margin was 15.79%, and the non net profit margin was 15.27%. The gross profit margin basically remained stable year-on-year, and the net profit margin and non net profit margin increased by 2.69 and 3.26pct respectively year-on-year; Q4 gross profit margin was 29.05%, year-on-year -0.18pct, and net profit margin was 14.21, year-on-year + 6.72pct. Titan, a subsidiary, has a negative net interest rate in 20 years, achieved a revenue of 1.943 billion yuan in 21 years, a net profit attributable to the parent company of 170 million yuan and a net interest rate of 8.77%, and its profitability is on track.
The company’s expense rate control is excellent, and the scale effect drives the comprehensive rate to continue to decline: the company’s comprehensive expense rate in 2021 was 16.89%, down 1.50pct year-on-year, of which the rates of sales, management, finance and R & D expenses in 21 years were 2.74%, 5.22%, -0.02% and 8.95% respectively, down -0.34, -0.17, -0.75 and-0.24pct year-on-year respectively. Competitive advantages of platform companies: in recent years, the company has arranged 3C intelligent equipment, intelligent logistics system, automobile intelligent production line, hydrogen energy equipment, laser precision processing equipment and other new businesses. These businesses are now at the leading level in the industry, and the characteristics of platform companies are becoming more and more obvious. Platform companies have strong competitive advantages. On the one hand, platform companies have strong business expansibility and can successfully layout all kinds of new businesses; On the other hand, new businesses develop faster in platform companies. Platform companies have unique advantages in the introduction of top talents in the industry, the acceptance of new businesses in customers, and the coordination of products, technology and management among different businesses.
Profit forecast and investment suggestions: considering that the average production rate of lithium battery industry is lower than expected and the first quarterly report of the company, we estimate that the net profit attributable to the parent company in 22-24 years is RMB 2.618 billion (former value of 2.98 billion), 3.815 billion (former value of 4.42 billion) and 4.919 billion respectively. The current market value corresponds to PE of 26.44, 18.15 and 14.07x respectively. Maintain the buying suggestion!
Risk tips: macroeconomic cycle fluctuation risk, management risk caused by scale expansion, M & A integration risk, new product R & D risk, etc.
