\u3000\u3 Shengda Resources Co.Ltd(000603) 338 Zhejiang Dingli Machinery Co.Ltd(603338) )
Event: the company disclosed the 2021 annual report and 2022q1 quarterly report: 1) the revenue in 2021 was 4.94 billion yuan, a year-on-year increase of 67.1%, and the net profit attributable to the parent company was 880 million yuan, a year-on-year increase of 33.2%; The gross profit margin was 29.3%, year-on-year -5.6pct, and the net profit margin was 17.9%, year-on-year -4.55pct; 2) In 2021q4, the revenue was 940 million yuan, a year-on-year increase of + 95.5%, and the net profit attributable to the parent company was 155 million yuan, a year-on-year increase of + 252.6%; Net interest rate 16.38%, year-on-year + 7.3pct; 3) In 2022q1, the revenue was 1.25 billion yuan, a year-on-year increase of + 49.0%, and the net profit attributable to the parent company was 196 million yuan, a year-on-year increase of + 15.1%; The gross profit margin was 29.2%, year-on-year -0.8pct, and the net profit margin was 15.6%, year-on-year -4.6pct.
In 2021, overseas demand will be strong, and the average price will rise. In 2021, the revenue was 4.94 billion yuan, a year-on-year increase of + 67.1%. According to the products, 1) scissors: the revenue was 2.85 billion yuan, yoy + 32.2%, and the sales were 44100 units, yoy + 27.5%, which was mainly due to the increase of overseas demand, with an average price of 65000 yuan / unit, yoy + 3.7%, which may be related to the increase in the proportion of overseas sales; 2) Arm type: revenue of 1.65 billion yuan, yoy + 191.0%, sales of 3954 units, yoy + 182.6%, mainly due to the release of production capacity of arm type products raised and invested projects, the increase of production capacity of arm type products, the increase of demand for arm type aerial work platform in the rental market and the increase of sales volume; 3) Mast type: revenue of 260 million yuan, yoy + 153.9%, mainly due to overseas epidemic control and warmer demand. In 2021, the company’s overseas market revenue increased by 149.44% over last year, mainly due to the gradual control of overseas epidemic, the recovery of demand and the company’s increase in overseas market sales. The company’s domestic market operating revenue increased by 36.86% over last year, mainly due to the increase of arm production capacity and the increase of domestic arm product sales. The decline of the company’s comprehensive gross profit margin is mainly due to the adjustment of product sales structure. The proportion of arm products increased by 14.57 percentage points, and the gross profit margin of arm products was 18.16%, which is lower than that of scissor and mast products. At the same time, the price of raw materials increased sharply, and the cost increased, which affected the comprehensive gross profit margin. The gross profit margin of mast products decreased by 8.7 percentage points, mainly due to the changes in the sales structure of the company’s mast series products, the rise of raw materials, the increase of sea freight and other factors during the reporting period.
In 2022, it will continue to develop overseas, and the marginal pressure of sea freight will weaken. In 2022q1, the aerial work platform industry sold 45431 aerial work platforms, a year-on-year increase of 42.7%; Among them, 29368 were in China, with a year-on-year increase of 26.9%; Exports increased by 16063% year-on-year. The cumulative sales volume in the first quarter increased by about 260% over the same period in 2019 before the epidemic, with an increase of more than 30000 units. In the first quarter, the growth rate of sales volume in the export market of aerial work platform ranked second among the 13 categories of products listed in the statistics of the association, and the export growth rate was second only to excavators. The high growth of aerial work platform was mainly stimulated by the recovery of overseas demand. The company continued to make efforts in European and other markets in 2022. CCFI: the European route index dropped to 506335, down 15.6% from 5854.1 on February 11, 2022, and the pressure on the company’s sea freight began to decrease marginally.
Investment suggestion: considering the good development momentum of various businesses of the company, the net profit attributable to the parent company in 20222024 is expected to be RMB 1.15/13.8/1.68 billion respectively, and the corresponding PE is 16x / 14x / 11x respectively, maintaining the “recommended” rating.
Risk tip: downside risk of industrial demand and risk of industrial price war.
