I. Overview of events
On August 17, the company released its semi-annual report for 2021, showing that in the first half of the year, the company achieved operating income of 6.887 billion yuan, an increase of 57.24% over the same period last year, and a net profit of 532 million yuan, an increase of 33.36% over the same period last year.
II. Analysis and judgment
The performance is growing steadily, and the expansion of overseas markets is accelerating.
In 21 years, the company's H1 realized revenue and return net profit of 6887 million yuan, an increase of 57.24 percent over the same period last year, and its performance grew steadily. From a product point of view, the revenue of the construction machinery business was 6.106 billion yuan, an increase of 58.76 percent over the same period last year, and the revenue of engineering construction was 426 million yuan, an increase of 171.05 percent over the same period last year. In the past 21 years, H1 Company has achieved good results in overseas markets, with revenue of 969 million yuan in overseas markets, an increase of 44.34 percent over the same period last year. By the year 21, H1, the company has set up more than a dozen subsidiaries overseas, and together with more than 180 agents have established a global marketing service network and accessories warehouses. In the first half of the year, among the 18 key regions in the world, 13 regions have achieved year-on-year growth, 10 of which have a growth rate of more than 100%.
Profitability fluctuates slightly and cash flow improves significantly
The gross profit margin of H1 company in 21 years is 24.63%, which is-3.93% higher than that of the same period last year. The gross profit margin of construction machinery sector is 24.41%, and the year-on-year change is-1.27%. Overall, the company's profitability fluctuated slightly in the first half of the year. In terms of expense rate, the company's sales expense rate, management expense rate and R & D expense rate were 6.01%, 3.73% and 2.17% respectively. Except that the sales expense rate remained unchanged from the same period last year, the rates of management and R & D expenses changed by-1.48% and-0.42% respectively compared with the same period last year. In terms of cash flow, the net operating cash flow of H1 Company in 21 years was 611 million, an increase of 126.88% over the same period last year, mainly due to the increase in cash received from the sale of goods and services.
Policy efforts to boost the prosperity of the industry, the company is expected to continue to benefit from the 730 Politburo meeting clearly proposed to reasonably grasp the progress of budgetary investment and local government bond issuance, and promote the formation of physical workload at the end of this year and the beginning of next year. As the total amount of new special bonds issued by local governments in the first half of the year is only 29% of the annual quota, far lower than 65% in 19 years and 59.5% in 20 years, under the background of sustained policy efforts. The acceleration of the issuance of special bonds in the second half of the year is expected to accelerate, which will lead to the intensive construction of a large number of projects and boost the prosperity of the construction machinery industry. The company's revenue from the construction machinery business / engineering construction business increased by 58.76% and 171.05% respectively in the first half of the year compared with the same period last year. With the rise in raw material prices in the first half, the joint price increase by construction machinery manufacturers is expected to repair the company's gross profit margin.
At the right time to enter the field of anode materials, the new business layout opens up the growth space of the company. Bobang Shanhe's main products include new energy power battery anode materials and all kinds of high-purity graphite products. Bobang Shanhe's main products include new energy power battery anode materials and all kinds of high-purity graphite products. Through this capital operation, the company has officially cut into the field of anode materials. At present, the production capacity of anode material manufacturers is in a state of full load, but due to the substantial increase in raw material costs and graphitization foundry costs, the price of anode materials has been raised many times. We believe that it is the right time for the company to lay out the anode material business at this stage. In addition, due to the existing graphitization into intermittent process, the company adopts the equipment method to realize the continuous graphitization process, and the overall cost can be reduced by 30%. And greatly reduce the area of equipment. In March 21, the company announced that it planned to invest 5 billion yuan to build an annual production line with an annual capacity of 100000 tons of anode materials and ultra-high graphite purification production line. With the smooth progress of the project, the negative electrode business is expected to continue to contribute profit increment to the company in the future. Open up the space for the growth of the company.
III. Investment suggestions
Infrastructure investment will boost the prosperity of the industry in the second half of the year, and the company is expected to continue to benefit, and the negative materials business will expand its growth space. It is estimated that the company's operating income from 2021 to 2023 will be 123.5 yuan, 143.3 yuan and 16.05 billion yuan respectively, an increase of 31.8%, 16.0% and 12.0% over the same period last year. The net profit of returning to the mother was 8.9,11.2 and 1.36 billion yuan, up 57.6%, 25.9% and 21.6% respectively over the same period last year. The current share price corresponds to PE of 13.9,11.1 and 9.1x, and the historical valuation center is 15.98x, maintaining the "recommended" rating.
Fourth, risk tips:
The competition in the construction machinery market continues to intensify, and the landing progress of the industrialization of new technology is not as expected.
