Increase market development efforts, 1H21 revenue and profits maintain rapid growth 1H21 realized income 416 million yuan (year-on-year + 33%), return mother net profit 83 million yuan (year-on-year + 168%), in line with the performance forecast (0.78-86 million yuan) The 2Q21 income / return net profit is RMB 232,0.61 million, which is 18% higher than that of the same period last year. This is mainly due to the delay in the execution of orders from the first quarter to the second quarter and the recognition of revenue from the first quarter due to the epidemic of COVID-19 last year. The company optimizes the construction of the marketing system and strengthens the market development. We believe that the performance will continue to grow rapidly in the second half of the year. We raise our profit forecast and expect the net profit from 2021 to 2023 to be 2.80x360 PE, giving the company its 21-year 36x target PE (comparable company Wind unanimously expects the median PE: 36x), with a target price of 13.32yuan, maintaining a "buy" rating.
1H21 electrical testing business income and profits, environmental testing business gross profit margin year-on-year decline in the electrical testing industry is a typical heavy asset industry, rapid income growth, economies of scale, gross profit margin significantly increased. 1) testing of low-voltage electrical appliances: 1H21 revenue is 72 million yuan (year-on-year + 52%) and gross profit margin is 64% (year-on-year + 16pct). Future growth is expected to come from the construction of power distribution network and product upgrading. 2) High voltage appliance testing: 1H21 revenue is 318 million yuan (year-on-year + 31%), 46% (year-on-year + 13pct) benefit from UHV restart and new energy (wind / photovoltaic / nuclear power), automotive electronics, military testing demand is good, the company continues to innovate and actively open up the market, high-voltage testing is expected to continue to grow steadily. In addition, competition in the environmental testing market intensified, with 1H21's environmental testing business income of 19 million yuan (+ 8% year-on-year) and gross profit margin of-9% to 52% compared with the same period last year.
The net profit of 2Q21 is 26.3%, which is higher than that of 2Q19 by 2pct.
2Q21 revenue grew 7% year-on-year, and the slowdown was mainly due to a high base in the same period last year. Gross profit margin is 55.4% (year-on-year + 1.5pct), mainly due to the economies of scale brought about by income growth. During the period, the expense rate was from + 1.1pct to 25.9% compared with the same period last year, of which the sales / R & D / financial expense rate was-0.1/-0.2/-1.4pct, and the management expense rate was from + 2.6pct to 10.1%, mainly due to the lower base caused by the year-on-year reduction of staff salaries and social security relief policies during the 2Q20 epidemic. The net interest rate of 2Q21 is 26.3%, which is higher than that of 2Q19 by 2pct, which is-8pct compared with the same period last year.
Maintain the "buy" rating with a target price of 13.32 yuan
The income and profit of the Institute of Electrical and technological Sciences increased rapidly in the first half of the year. We forecast that the net profit from 2021 to 2023 will be 2.80x360,000,000 yuan (previous value: 2.51 Wind 326,000,000 yuan), corresponding to 0.37x0.48x0.61 yuan respectively. With reference to comparable company's 21-year Wind consensus forecast median PE 36x (previous value: 33x), we give the company a 21-year 36x target PE (previous value: 33x). It is estimated that the company will have a 21-year 36x target PE with reference to the comparable company's 21-year median forecast of 36x (previous value: 33x). Target price 13.32 yuan (previous value: 10.89 yuan), maintain "buy".
Risk hint: the progress of project construction is lower than expected, and the progress of market development is lower than expected.