Incident: The company released its 2021 semi-annual report on the evening of August 24, 2021. Among them, revenue for the first half of 2021 was 662 million yuan, an increase of 61% over the previous year, and Guimu's net profit was 82 million yuan, an increase of 106.5% over the previous year.
The reviews are as follows:
Plant lighting increased 381% month-on-month, and gross margin is expected to bottom out in the second half of the year. The company released its 2021 semi-annual report on the evening of August 24, 2021. According to the announcement, the revenue for the first half of 2021 was 662 million yuan, an increase of 61% over the previous year, and the net profit of the mother was 82 million yuan, which was at the upper end of the previous performance forecast range of 0.75-83 million yuan, up 106.5% year on year, slightly exceeding expectations. The rapid increase in revenue and performance was mainly due to the increase in order volume and delivery volume for emerging applications such as plant lighting. According to the announcement, the company's revenue for plant lighting increased 381% year on year, split Q2 revenue to 391 million yuan, an increase of 63% year on year With a 44% increase, the performance was about 45 million, an increase of 92% over the previous year, and an increase of 22% over the previous month. The performance growth rate was lower than the month-on-month growth rate of revenue. The main thing is that Q2 single-quarter gross margin was 32.72%, down 2.17 percentage points from the previous quarter. According to industry chain research, since the second quarter was the peak season for chip price increases, it is expected that gross margin will bottom out due to cost mitigation compounded by price increases lagging effects.
Based on advantages such as technology and channels, seize the opportunities of plant lighting to reach a higher level. The company led Mr. GUICHAO HUA, Chairman of the switching power supply expert, to build an international first-level echelon for more than 80 countries and regions around the world. According to the company announcement, the company had plant lighting related products as early as 2013. The company's advantages were reflected in first-mover advantages, including the layout of technology, patents, and intelligent interfaces. Furthermore, when the company was founded, great importance was placed on overseas markets. India and Mexico are expected to take the lead in seizing the dividend of the plant lighting explosion with reserve production bases, technology, channels, costs and other advantages. We expect plant lighting to benefit from the penetration of North American cannabis in the short term In the medium to long term, the promotion of high-value crops and plant lighting for potential crops will usher in continued high growth.
New growth: Cut into new energy charging and switching to create a second growth curve. The company entered the fields of new energy chargers and charging piles in 2017, and has now formed a product matrix for power exchange stations, vehicle chargers, etc. According to the semi-annual report, H1 contributed 17.3 million yuan in revenue in 2021, an increase of 119% over the previous year. We expect that with the iteration of chargers and the development of the company's downstream customers, the scale effect of revenue and gross margin is expected to increase rapidly.
Performance forecast and investment valuation: We maintained revenue of $1,415 and $1,843 million respectively for 2021-2022, and net profit of $221 and 306 million respectively, up 36.6% and 38.5% year-on-year. Corresponding to 2021-2022 PE was 42 and 30 respectively. Considering that the company's high-power position in LEDs and benefiting from new explosions such as plant lighting superimposed on the company's new energy layout, sufficient growth momentum, and maintained a “buy” rating.
Risk warning: Plant lighting development falls short of expectations, chip supply and cost risk of rising
