\u3000\u3000 Sieyuan Electric Co.Ltd(002028) (002028)
Event:
The company released the performance express for 2021, and achieved a revenue of RMB 8.701 billion in 2021, with a year-on-year increase of 18.02%; The net profit attributable to the parent company was RMB 1.211 billion, with a year-on-year increase of 29.72%. In the fourth quarter alone, the revenue was 2.58 billion yuan, an increase of 11.9% year-on-year; The net profit attributable to the parent company was 320 million yuan, a year-on-year increase of 219.6%.
Comments:
The performance is basically in line with expectations and the operation is stable. Benefiting from the construction of new power system and the steady progress of overseas projects, the company's revenue increased steadily in 2021. Due to the change of quarterly allocation method of employee bonus in 2021, the company evenly apportioned the employee bonus accrued in the fourth quarter to the whole year, resulting in the company's net profit attributable to the parent company of 889 million yuan in the first three quarters of 2021, with a year-on-year increase of 6.75%, lower than the revenue growth rate of 20.8% in the first three quarters. Correspondingly, the net profit attributable to the parent company increased rapidly in the fourth quarter of 2021. Throughout the year, the growth rate of the company's net profit attributable to the parent company was higher than that of revenue. On the one hand, because the company continued to benefit from platform management, the expenses during the period increased by 15.15% year-on-year, lower than that of revenue; On the other hand, the company has coped well with the impact of the price rise of raw materials in 2021, and the gross profit margin is expected to remain stable.
Overseas EPC business will become a powerful engine for the company's development. According to the announcement, orders in overseas markets will account for about 20% in 2020, and the company plans to increase to 30% in the future. At present, the company's overseas projects are mainly in the European and African markets. The company judges that the largest demand in the future is in North America. At present, it has won the bid for the transformer project of Buffett power company in the United States. Under the background of global carbon neutrality, the power system is facing a new round of transformation demand, and the market space is huge. As an excellent private power equipment enterprise in China, the company has strong execution and global competitiveness. According to the recruitment platform information, the company is currently recruiting a large number of overseas sales personnel in Spanish, Russian, English, French, Arabic, etc. Overseas EPC drives equipment shipment, which is expected to become a powerful engine for the development of subsequent companies. Continue to pay attention to the development of the company's energy storage business. Under the background of the new power system, the demand for UHV and distribution network has increased structurally, the application proportion of power electronic equipment has increased, and the demand for energy storage is strong. The company's secondary equipment developed smoothly, and the subsidiary Siyuan Hongrui made a net profit of 112 million yuan in 2020, a year-on-year increase of + 72%. At the same time, in the field of power electronics, the company has a deep accumulation of SVG business and shares in a number of chip companies. According to the recruitment platform information, the company is currently recruiting a large number of cell development personnel. Combined with the company's experience in power battery, power electronics technology and EPC assembly, it is expected to make a breakthrough in energy storage business in the future.
Investment suggestion: the company has strong competitiveness in the field of power grid equipment. With the continuous expansion of overseas EPC projects, it is expected to continue to drive the improvement of the company's performance. At the same time, the company is establishing and expanding the cell development team, which is expected to form an effective support for HEV vehicle and energy storage business. We maintain the company's 22-23 year profit forecast of RMB 1.59/1.96 billion, corresponding to EPS of RMB 2.08/2.56, and the current stock price corresponding to 22 year PE of 23 times, maintaining the "buy" rating.
Risk tips: Overseas EPC project risk, upstream raw material price rise risk, and intensified market competition risk.
