Event Overview
The company released the mid-2021 report that in the first half of the year, the operating income was 1.581 billion yuan, an increase of 45.59% over the same period last year, the net profit of returning to the mother was 157 million yuan, an increase of 21.16% over the same period last year, and the net profit after deducting non-return was 114 million yuan, an increase of 21.34%.
Analysis and judgment:
Steady growth in revenue and outstanding performance
The company's revenue in the first half of the year increased by 45.59% to 1.581 billion yuan, realizing a net profit of 157 million yuan, an increase of 21.16% over the same period last year. In terms of products, the company's revenue from intelligent equipment was 690 million yuan, up 48.36 percent from the same period last year; revenue from environmentally friendly paints and resins was 553 million yuan, up 80.78 percent from the same period last year; and revenue from quality and technical services was 311 million yuan, up 10.46 percent from the same period last year. In terms of intelligent equipment business, the company signed a series of contracts with lithium battery head enterprises for the supply of automatic testing system for battery production, and undertook large-scale projects such as 6 × 300MW excitation transformation of Henan Xiaolangdi Power Plant and 21 × 50MVar distributed tuner excitation system supply of Qinghai New Energy Base of SPIC Yellow River Company. In terms of quality and technical service business, the company has expanded its new business and achieved year-on-year growth of more than 200% in the areas of dishwashers and charging piles.
The product structure has been adjusted and the profitability has declined slightly.
1) the decrease in the proportion of revenue from high gross margin products in the first half of 2021 resulted in a 6.53 percentage point year-on-year decline in comprehensive gross profit margin to 27.65%. 2) the overall cost scale of the company expanded in the first half of 2021, but the expense rate showed a downward trend. In the first half of 2021, the sales expense rate dropped 2.22 percentage points to 6.56% compared with the same period last year, and the management expense rate decreased 2.20 percentage points to 13.11% year on year. Financial expenses remained at-0.51% and remained low. 3) the company's product structure has been adjusted. Affected by the decrease in the proportion of quality and technical service products, the company's net interest rate fell 1.69 percentage points to 10.07% in the first half of 2021 compared with the same period last year, and its profitability declined slightly.
The cost of research and development continues to increase, and the core competitiveness is further enhanced.
In the first half of 2021, the company's R & D expenditure rate reached 7.56%, down 0.59% from the same period last year. The scale of R & D investment expanded, increasing 34.96% to 120 million yuan over the same period last year. Continuous R & D investment is the guarantee of the company's innovation. The company organizes 102 scientific and technological projects, including 17 key projects, 35 patent applications and 49 patents. The company has taken the lead in developing high series capacity separation equipment in the new energy battery industry, which has been successfully applied in BYD and other customers, and the charge and discharge efficiency has been improved by more than 20%; in the environmental protection coating industry, the company's polyester resin products have been successfully applied in the leading enterprises in the field of construction machinery. In the future, the company is expected to strengthen scientific and technological innovation and enhance its core competitiveness.
Investment suggestion
To keep the profit forecast unchanged, the company's revenue from 2021 to 2023 is estimated to be 41.45,5121 million yuan, the net profit of return to the mother is 3.85 pound 5.07 yuan / 662 million yuan, and the corresponding EPS is 0.95 pound 1.25 billion yuan respectively. Maintain a "buy" rating.
Risk hint
The price of technology and raw materials has risen, and the prosperity of the lithium industry is not as good as expected.
