\u3000\u3000 Sijin Intelligent Forming Machinery Co.Ltd(003025) (003025)
Event: on January 14, Sijin Intelligent Forming Machinery Co.Ltd(003025) (003025. SZ) released the performance forecast for 2021. During the performance forecast period from January 1, 2021 to December 31, 2021, the net profit attributable to the shareholders of the listed company is expected to be RMB 121-128 million, an increase of 29.23% – 36.70% over the same period of the previous year; It is estimated that the net profit after deducting non recurring profits and losses is RMB 114 million to RMB 120 million, an increase of 41.19% – 48.63% over the same period of last year; Estimated basic earnings per share: 1.08 yuan / share – 1.14 yuan / share.
Key points of the report:
The performance forecast for 2021 is in line with expectations, with significant performance growth.
The company released the performance forecast for 2021, saying that the net profit attributable to the parent company is expected to be RMB 121-128 million, with a year-on-year increase of 29.23% – 36.70%; It is estimated that the net profit after deducting non recurring profits and losses is RMB 114-120 million, a year-on-year increase of 41.19% – 48.63%. In the first three quarters of 2021, the company realized a net profit attributable to the parent company of 89 million yuan, a year-on-year increase of 19.68%, of which the net profit attributable to the parent company in the third quarter was 25 million yuan. Based on the expected performance of the whole year of 2021, the net profit attributable to the parent company in the fourth quarter of 2021 is expected to be 32-39 million yuan, and the marginal improvement of performance in the fourth quarter of 2021 is obvious.
Downstream customers have strong demand for the company’s cold forming equipment, and the company has sufficient orders.
Under the background of “machine replacement” and the rapid development of downstream industries such as automobile, machinery manufacturing, infrastructure and electric power, downstream customers have strong demand for the company’s cold forming equipment, and the company has sufficient orders. The company continued to strengthen the research and development of new products, continuously expanded the downstream application fields and application markets of cold forming equipment products, and increased more orders from new fields such as electric tools, pneumatic tools, food machinery, prefabricated buildings and photovoltaic power generation.
With the gradual reaching of the production capacity of raised investment projects, the processing and production capacity of the company has been improved.
The company’s gold processing production capacity has been continuously improved. The large processing center purchased with its own funds has gradually released its production capacity, the production automation level has been continuously improved, and the production efficiency has been further improved. In the last three years, the company’s capacity utilization rate has exceeded 100%. The company’s IPO raised investment projects include an annual output of 450 multi station high-speed precision intelligent cold heading equipment. According to the plan, the project will be completed and accepted in June 2022.
Investment advice and profit forecast
The production capacity of the company’s raised investment projects will be released, the output of high-end cold forming equipment will be expanded, and the added value of products will be increased. We expect that the company’s revenue will be 483 / 604 / 749 million yuan respectively in 2021, 2022 and 2023, the net profit attributable to the parent company will be 125 / 162 / 206 million yuan respectively, and the corresponding EPS will be 1.11/1.44/1.83 yuan / share respectively. According to the latest stock price, the corresponding PE will be 30 / 23 / 18 times respectively, Give a “buy” rating.
Risk tips
The slower than expected growth of fastener demand leads to the slowdown of equipment demand, the lower than expected penetration rate of cold heading process, the lower than expected commissioning progress of new production capacity of raised investment projects, and the decline of capacity utilization.
