Event description
On August 17, 2021, the company released its semi-annual report 2021. In the first half of 2021, the company achieved an operating income of 842 million yuan, an increase of 36.8 percent over the same period last year, and a net profit of 52.7 million yuan belonging to shareholders of listed companies, down 38.4 percent from the same period last year. In the second quarter of 2021, the company achieved operating income of 582 million yuan, up 51.6% from the same period last year. The net profit of shareholders belonging to listed companies was 72.24 million yuan, a significant improvement from the previous month, an increase of 3% over the same period last year.
Event comment
Effective control of the domestic epidemic, strong market demand, substantial growth in performance; the landing of overseas industrial products, promoting a steady improvement in performance. In the first half of 2021, under comprehensive and effective control of the domestic COVID-19 epidemic, the economy entered a stage of restorative growth, and the market demand was strong. Domestic income increased by 59.11% over the same period last year, driven by product lines such as rental, two passengers and one danger. With the landing application of industrial products such as rental, public transportation, two passengers and one danger in Europe, the Middle East and the Asia-Pacific region, overseas business increased by 17.95% in the first half of the year compared with the same period last year.
Affected by the purchase cost of raw materials, the rising labor cost of factory relocation and other factors, the company's gross profit margin of many businesses declined in the first half of 2021. The gross profit margin in the first half of 2021 was 37.62%, a year-on-year decline of 10.11pct, but compared with Q1 increased 2.36pct, the negative impact gradually diminished. The company has long used technological innovation as a means of continuous high investment in R & D. in the first half of 2021, R & D expenses increased by 32.24% compared with the same period last year. The demand of the company mainly comes from the government and transportation operation enterprises, and the acceptance inspection is mostly concentrated in the second half of the year, with relatively low revenue and profits in the first half of the year. It is expected that with the completion of capacity relocation and the improvement of downstream demand, the company's revenue and performance growth rate is expected to continue to improve for the whole year.
Starting from the professional field, the company will lay out the autopilot preloading market, which is expected to open up a new space for growth. On the basis of the existing market and technology, the company extends to the self-driving front loading market to provide customized services for the whole vehicle factory. The field of self-driving involves many technologies, such as specification-level hardware manufacturing, artificial intelligence, multi-sensor fusion, intelligent computing and so on. Ruiming has a layout in the related technologies in the above areas, and is expected to cooperate with car factories in the front market, such as intelligent cockpit, intelligent active braking, etc., which is expected to open up a new space for the company's performance growth.
Profit forecast and investment suggestions: affected by capacity relocation, decline in gross profit margin and increase in expenses, gross profit and return net profit decreased in the first half of 2021 compared with the same period last year, but operating income and return net profit increased in the second quarter compared with the same period last year. Gross profit margin increased month-on-month, the negative impact is diminishing. Looking forward to the whole year, the company's revenue and performance growth is expected to improve. We expect the net profit from 2021 to 2023 to be 2.44,3.16 and 402 million yuan respectively, corresponding to the PE valuation of 33, 25 and 20 times, maintaining the "buy" rating.
Risk hint
1. The recovery of domestic business is not as expected.
two。 The policy fell short of expectations.
