\u3000\u3000 Dongguan Yiheda Automation Co.Ltd(301029) (301029)
Event: the company disclosed the performance forecast of 2021, and the net profit attributable to the parent company was 390-410 million yuan, with a year-on-year increase of 43.73% – 51.10%; According to the calculation, the net profit attributable to the parent company of Q4 was 83-103 million yuan, with a year-on-year increase of – 3.04% ~ 20.33%..
In 2021q4, the growth rate of net profit attributable to parent decreased month on month, slightly lower than expected. However, in the whole year, it is not easy to achieve the growth rate of net profit attributable to parent of 43.73% – 51.10%. The year-on-year growth rate of net profit attributable to the parent company in 2021q4 is expected to decrease due to the following two factors: 1) 2020q4 has a high base; 2) In 2021, the company’s SKUs continued to increase, but the recent epidemic situation in various places repeatedly or affected the company’s delivery and express rhythm, which had a certain negative impact on the company’s delivery confirmation revenue.
The company’s follow-up focus is mainly on the continuous enrichment of product types, capacity improvement and strong follow-up service ability: 1) continuous enrichment of product types: Based on the existing FA factory automation parts standardization system, through the standardization of original non-standard products, as well as the serialization and modular innovation of existing standard products, Continuously strengthen product development and create a unique and competitive product system. At the same time, the company will deeply cultivate various application fields of automation equipment, distinguish application scenarios, conduct in-depth standardized and modular research and development, accurately match customer needs, and finally improve the design efficiency of automation equipment manufacturers, reduce procurement costs and shorten the delivery cycle. 2) Capacity improvement: with the launch of the company’s IPO project, the company’s capacity in manufacturing, warehousing, sorting, packaging and shipping will continue to be improved. 3) Strong service team: the company has established an experienced sales team with 12 sales engineer teams and 19 sales offices to quickly respond to customer needs. The company can assist customers to complete the whole process of service support from project startup, product selection to application delivery through online services, telephone hotlines, resident personnel visits and other means. We believe that the follow-up service ability is a very important factor for the company’s development speed to exceed the growth rate of Mismi’s business in China from 2018 to 2020.
It is expected to maintain rapid growth in 2022: 1) the business attribute of the company essentially reflects the general trend of automation upgrading of China’s manufacturing industry; 2) At present, the fast-growing downstream of the company includes lithium battery equipment, photovoltaic equipment, Siasun Robot&Automation Co.Ltd(300024) , medical equipment and other fields. It is expected to achieve rapid growth in 2022. At the same time, the newly expanded field of semiconductor equipment is expected to form a new business increment in 2022; 3) The company’s IPO has completed the capacity expansion, which can support the total annual shipment of 4.8 million items (2.316 million items in 2020), and the capacity has increased greatly.
Investment suggestion: it is estimated that the net profit attributable to the parent company from 2021 to 2023 will be RMB 400 / 620 / 940 million respectively, and the corresponding PE will be 81x / 52X / 35x respectively. It will be covered for the first time and given a “recommended” rating.
Risk tips: 1 Risk of SKU expansion failure; 2. Risk of low profitability due to intensified price war in the industry; 3. Anti globalization leads to the slow development of China’s manufacturing industry, which affects the demand risk of automation parts; 4. The large proportion of SKUs covered by Mismi economic products has increased, which has brought great competitive pressure to Dongguan Yiheda Automation Co.Ltd(301029) and reduced the risk of market share; 5. Dongguan Yiheda Automation Co.Ltd(301029) the slow rise in the load rate of raised investment projects leads to the risk of short-term decline in profitability; 6. The slowdown in the development of downstream areas where the company’s products are concentrated affects the risk of product demand.
