In the first half of 2021, the revenue in the first half of 2021 was + 45.59% compared with the same period last year, and the net profit of 21H1 in the first half of 2021 was 1.581 billion yuan, + 45.59% compared with the same period last year; the net profit in the first half of 2021 was 157 million yuan, + 21.16% compared with the same period last year; in a single quarter, 21Q2 realized revenue of 997 million yuan, + 49.54% The net profit was 110 million yuan, + 26.13% compared with the same period last year, and the performance was in line with expectations. The lower growth rate of income was mainly due to the business structure and the increase in the proportion of environmental protection paint business with low gross profit margin of 21H1. The gross profit margin / net profit margin of 21H1 is 27.65% / 10.07% respectively, and the year-on-year change is-6.53% / 1.69 pct. The short-term fluctuation is mainly due to the increase in the price of raw materials and the change of business structure. The 21H1 sales / management / R & D / financial expense rates are 6.56% 5.56% for 5.56%, 7.56% and 0.51%, respectively, with a year-on-year change of-2.22, 1.61, 0.59 and 0.34 pct, respectively, for sales / management / R & D / financial expenses.
The net operating cash flow of 21H1 was-43 million yuan (20H1 was 12 million yuan), which was-449.27% compared with the same period last year, mainly due to the increase in the execution of contracts and the increase in the availability of products / raw materials.
The detection capability continues to be distributed, and the lithium power equipment is expected to accelerate its growth.
In terms of products, 21H1 quality technical services / intelligent equipment / environmentally friendly paints and resins earned RMB 611 million, compared with the same period last year, which was + 10.46%, 48.36%, 80.78%, respectively. 1) quality technical service: the revenue / net profit of 21H1 tested by wholly-owned subsidiary Weikai is RMB 257 million, which is + 8.83% and 26.17% respectively compared with the same period last year. The net interest rate is 16.91% and-8.01 pct compared with the same period last year. 21H1 has built 13 new laboratories and put them into operation. In addition, it is expected that a number of laboratories will be built and put into operation this year, and the downstream areas will gradually improve capacity building in smart home / automobile / equipment, 5G communications, medical and health, consumer goods and rail transportation. 2) Lithium battery automatic detection system: 21H1 high series series forming and dividing equipment (which can improve cell consistency, increase charge and discharge efficiency by 20% +, and reduce debugging workload by 50% +) has been successfully applied to customers such as BYD, and more than 10 series production lines of lithium battery head enterprises have been obtained. The company is a front-line supplier of lithium power equipment, and has entered the supply chain of BYD / ATL/ Guoxuan Hi-Tech / Tianjin Lishen / CATL, which will deeply benefit from the high prosperity of the lithium equipment industry.
Profit forecast and investment advice:
Taking into account the continued increase in the layout of testing business and the high prosperity of lithium power business, we slightly increase our 2021-23 net profit to RMB 399,000,000 (the previous value is RMB 519,000,000), corresponding to the times of PE in 40-27-20, and maintain the "buy" rating.
Risk tips: testing business is not as expected; lithium electricity orders are not as expected; market competition is intensified.