\u3000\u3000 Guangdong Haomei New Materials Co.Ltd(002988) (002988)
Event: the company plans to issue convertible corporate bonds, and the total amount of funds raised is Y8 2.4 billion yuan, with an initial conversion price of 21.51 yuan / share. The original shareholders gave priority to placing Haomei convertible bonds totaling 657 million yuan, accounting for 79.79% of the total issued this time.
Comments:
The issuance of convertible bonds helped accelerate the expansion of the company’s business. After deducting the issuance expenses, the funds raised by the company’s convertible bonds are mainly used for the expansion of high-end industrial aluminum profiles (270 million yuan), the construction of high-end energy-saving system door, window and curtain wall production base (220 million yuan), marketing operation center and information construction (90 million yuan) and supplementary working capital (240 million yuan). The company will accelerate the construction of high-end industrial aluminum profile expansion project and expand the production scale of industrial aluminum profiles such as aluminum profiles for 5g base station, UHV aluminum profiles and aluminum temsector profiles. In addition, through the construction of high-end energy-saving system door and window curtain wall production base, strengthen the company’s dominant position in the system door and window market and continuously improve the market share. The company’s automotive lightweight materials and system door and window business has entered a stage of rapid growth. With the improvement of industry demand and the implementation of the company’s convertible bond project, the company’s performance is expected to maintain rapid growth. According to the performance forecast of the company in 2021, the net profit attributable to the parent company is expected to be 133-150 million yuan in the whole year, with a year-on-year increase of 14.73% – 29.39%.
The company’s automobile lightweight materials benefited from the high sales volume of new energy vehicles. Driven by the sharp growth in the production and sales of new energy vehicles, the demand for battery brackets, anti-collision beams and other products increased. In the first half of 2021, the company’s automobile lightweight business achieved a sales revenue of 138 million yuan, a year-on-year increase of nearly twice. The development of the company’s automobile lightweight business is closely related to the number of fixed-point projects and the sales of mass-produced models. At present, the company supplies aluminum alloy materials and components for 25 European, American, Japanese, Korean and Chinese vehicle brands, including Mercedes Benz, BMW, Honda, Toyota, GAC, Weilai and Xiaopeng. It has obtained more than 150 fixed-point projects, including more than 60 mass-produced projects, Provide aluminum alloy materials and components to more than 30 primary suppliers of auto parts; In addition, the company has several projects in the sample development stage, and will gradually enter the project fixed-point and mass production stage in the future. With the large-scale production of mass-produced projects and the mass production of new projects, the sales of the company’s automobile lightweight business will maintain a high-speed growth trend.
The company’s system door and window business has entered a performance explosion period. In the past few years, through the layout and investment of b-end real estate and C-end retail stores, the system door and window business has entered the harvest period since 2021, the scale effect has gradually appeared, and the growth rate of revenue and net interest rate will accelerate. In the first half of 2021, the sales revenue of the company’s system door and window business was about 130 million yuan, with a year-on-year increase of 28.17%, including a year-on-year increase of 108% in retail business, which promoted the gross profit margin of the system door and window business by 5.35 percentage points to 36.97%. At present, there are more than 40000 door and window enterprises in China, which are generally small and medium-sized enterprises and lack the ability of R & D and design. In the field of system doors and windows, the company has the advantages of whole industry integration such as material processing, R & D, design and testing. By introducing becolo products into downstream door and window processing enterprises, the company can solve its lack of high-quality products and achieve win-win results in the industrial chain. At present, the company has laid out system doors and windows throughout the country, joined 91 retail stores and 2 online flagship stores, which will continue to increase in the later stage, and the C-end has entered the stage of accelerated expansion. At the same time, under the “double carbon” goal of end B, the system doors and windows will become the best choice for energy conservation and consumption reduction. The company’s system door and window business is about to enter a performance explosion period.
Profit forecast and investment rating: in combination with the company’s main business development plan and industry demand growth, without considering the impact of convertible bonds, we expect the company’s net profit attributable to the parent company from 2021 to 2023 to be 151, 250 and 402 million yuan respectively, EPS to be 0.65, 1.08 and 1.73 yuan / share respectively, and the PE corresponding to the current stock price to be 29x, 17x and 11x respectively. The company’s future performance growth mainly comes from automobile lightweight aluminum profile (mainly new energy vehicle battery tray materials) and system door and window business. The valuation can be compared with Guangdong Hoshion Aluminium Co.Ltd(002824) (battery tray leader) and Guangdong Kinlong Hardware Products Co.Ltd(002791) (integrated supplier of door, window and curtain wall hardware accessories). Considering that the company’s automobile lightweight and system door and window business has entered a stage of rapid growth and is the main growth point of the company’s future performance, we think it is reasonable to give the company 30 times PE in 2022 and maintain the company’s “buy” rating.
Risk factors: the production and sales of the company’s automobile lightweight aluminum profile products are less than expected; The sales growth of the company’s system doors and windows was lower than expected; The sharp rise in aluminum prices led to a decline in the gross profit margin of the company’s products.
