\u3000\u3000 Xiamen East Asia Machinery Industrial Co.Ltd(301028) (301028)
After 30 years of deep cultivation in the field of air compressor, the craftsman spirit is leaping.
① the company has developed into a leading enterprise in China's air compressor industry. The company's main products include screw air compressors, piston air compressors and supporting equipment. It has always carried out innovative research on the high reliability, high energy efficiency, low noise and high-definition cleanliness of the air compression system. The models such as permanent magnet screw machines and secondary compression screw machines have always been in the forefront of the industry in terms of energy saving. In 2020, the proportion of the company's permanent magnet screw machine revenue increased to 74.55%. In recent years, the proportion of the company's energy-saving products continued to increase, and the product structure was gradually optimized.
② the company has excellent financial indicators and rapid performance growth. In the first three quarters of 2021, the company achieved a revenue of 720 million yuan, a year-on-year increase of 31.23%; The net profit attributable to the parent company was 147 million yuan, a year-on-year increase of 53.47%. In recent years, the gross profit margin of the company has been maintained at more than 30%, the net profit margin has been increased to more than 20%, and the weighted average return on net assets has been maintained at more than 20%. The overall profitability of the company is strong. The company's asset liability ratio gradually decreased, the turnover rate of accounts receivable and inventory remained at a high level, and the net cash flow from operating activities remained stable. The company's financial indicators are excellent.
The air compressor industry has developed steadily, and the trend of energy saving and consumption reduction is obvious.
① there are many types of air compressor products and downstream industries are widely distributed. Air compressor is a system that converts the mechanical energy of prime mover (usually motor) into gas pressure energy and outputs air source power with high pressure. It is an important means to realize production process automation. Air compressor is widely used in equipment manufacturing, automobile, electric power, medical treatment, textile, photovoltaic, semiconductor and other fields.
② the policy east wind has arrived, and the prospect of energy-saving and consumption reducing air compressor is expected. With the world's attention to energy conservation and emission reduction, especially the promotion of China's "double carbon" policy, it has become an inevitable choice to create a more "green" air compressor scheme. Air power is the second largest power energy after electric power. The power consumption of air compressor accounts for 9.5 ~ 10% of the total power generation in China and 10 ~ 35% of the power consumption of enterprises in the industrial field. Permanent magnet screw machine, two-stage compression screw machine and other models have obvious energy-saving and consumption reduction effects, and the replacement of high energy consuming air compressor is expected to be gradually accelerated.
③ the market scale of China's air compressor is about 60 billion yuan. According to the prediction of compressor network, the sales revenue of Enterprises above Designated Size in China's air compressor industry is expected to reach 61.6 billion yuan in 2021. In recent years, the air compressor industry has maintained a steady growth trend. According to the research data of Zion market research, the global air compressor market will reach US $30.5 billion in 2020.
④ the competition pattern is gradually optimized, and the process of domestic substitution is accelerating. Foreign brands represented by Atlas and Ingersoll Rand are in a dominant position in China's high-end air compressor market. Domestic brands represented by Xiamen East Asia Machinery Industrial Co.Ltd(301028) , Zhejiang Kaishan Compressor Co.Ltd(300257) , Ningbo Baosi Energy Equipment Co.Ltd(300441) gradually occupy the middle-end market, continue to penetrate the high-end market and gradually realize import substitution by virtue of price advantage and good after-sales service.
Permanent magnet screw machine technology leader to build a high-end brand of domestic air compressor.
① core technology advantages are prominent, and new technology products lead the market. The company is one of the few manufacturers in China with independent design and production capacity of screw compressor host. It has mastered more than 60 types of profiles and formed core technical advantages in profile design, independent production, energy conservation and environmental protection of screw air compressor. The company has won many honors, such as "high-tech enterprise", "single champion of manufacturing industry in Fujian Province", "specialized special new little giant" and so on. The company's "Jaguar" brand has become a well-known brand in the industry, and the "Jaguar" brand has been widely recognized by the market.
② focus on the distribution system and gradually improve the marketing network. The company adopts the distribution based sales model, has built a dealer team with high brand loyalty, strong sales ability and professional service level, and has formed a marketing network with Guangdong, Jiangsu, Zhejiang, Fujian, Shandong and other provinces as the central sales area and radiating the whole country. Dealers who have distributed the company's products for more than 10 years account for more than 60% of the total revenue, and dealers whose gross profit margin of product sales is more than 10% account for 77.27%. The company's end customers include well-known enterprises in many fields such as Huawei, Byd Company Limited(002594) , Dongfeng Automobile Co.Ltd(600006) , Crrc Corporation Limited(601766) , China Railway Group Limited(601390) , gold cabinet, Anta sports, Foxconn, Panasonic electric, Gongniu Group Co.Ltd(603195) . ③ The energy efficiency level of the products is leading in the industry, and the raised investment projects help the company's performance take off. In 2015, the company began to launch permanent magnet variable frequency screw air compressor, and the product energy efficiency level is leading in the industry; The full range of Jaguar permanent magnet products have reached the national first-class energy efficiency standard, and have been ranked first in the "energy efficiency star" ranking of the Ministry of industry and information technology for four consecutive years. The company has better product performance and strong product premium ability. After the completion of the company's fund-raising project, the production capacity of permanent magnet screw machine will be doubled, and the oil-free screw machine business will be vigorously distributed, which will further bring performance flexibility to the company and enhance the competitiveness of the company.
For the first time, it will be rated as "overweight".
The company is a leading enterprise in China's air compressor industry, with outstanding core technology advantages, industry-leading product energy efficiency level and strong product premium ability. With the gradual release of the production capacity of the company's raised investment projects, the company's performance can grow rapidly. We estimate that the net profit attributable to the parent company from 2021 to 2023 will be RMB 184 million, RMB 217 million and RMB 248 million respectively, corresponding to 29.16, 24.76 and 21.67 times of PE respectively. For the first time, it will be rated as "overweight".
Risk tips: the investment in fixed assets slows down, the price of raw materials fluctuates sharply, the market competition intensifies, the promotion of raised investment projects is less than expected, and the information used in the research report is not updated in time.
