Event: the company released 2021 semi-annual report, the first half of 2021 revenue of 659 million yuan, year-on-year + 70.75%, return to the mother net profit of 44 million yuan, year-on-year + 1.2%. If the special bonus and equity incentive cost of 5.3125 million yuan are deducted, the net profit of returning home will increase by 13.47%.
Comments:
The production capacity of various business departments has been released, and the production and sales volume has reached an all-time high. The company continues to expand investment and has set up new production bases in Yongzhou, Dongguan and Shenzhen one after another, and its production capacity has increased by about 50% compared with the same period last year. In 2021, H1, revenue of smart home products was 468 million yuan, year-on-year + 59.1%, gross profit 16.2%, year-on-year-6.95pct; revenue of health and care products was 110 million yuan, year-on-year + 162%, gross profit margin 9.88%, year-on-year + 2.31pct; revenue of sports control products was 60 million yuan, + 46.3% year-on-year.
Actively respond to the sharp rise in raw materials and the appreciation of the RMB, gross profit margin under pressure. In 2021, the average exchange rate of RMB against the US dollar is about 6.46, which is about 8.89% higher than that in the first half of 2020. The average spot price of copper, aluminum and zinc in China rose 49.2%, 31.6% and 29.1% respectively over the same period last year. Affected by the rise in the price of bulk metal materials and the appreciation of the RMB, the sales price adjustment has been delayed to a certain extent. In 2021, H1 comprehensive gross profit margin of 19.01%, year-on-year-4.9pct. The company has effectively resolved the pressure of RMB appreciation and rising raw material prices by raising product sales prices, optimizing design to reduce costs, locking copper in forward contracts, improving production efficiency and management level, and so on. At present, the company has passed the trough of gross profit margin, the gross profit margin of the company will pick up significantly in the second half of the year, and the company's performance is expected to continue to grow.
Complete the non-public offering to help a new round of development. In July 2021, the company completed a non-public offering of shares, raising a net fund of 488 million yuan. The company will speed up the construction progress of the "Intelligent Motor and Drive Control system Construction Project". After the completion of the project, it mainly produces intelligent motors, encoders, drivers and other products. The company speeds up the promotion of the new generation of high-performance V6 servo system in the new application field, and has become the supplier of Apple Inc mobile phone production and testing equipment, and the stepper motor has reached batch cooperation with Hai Kangwei and Yushi Technology.
Earnings Forecast, valuation and rating: we maintain the original profit forecast and expect the company's 2021E-2023E net profit to be 173, 317 million yuan, while the current share price corresponds to a PE of 50, 38 and 31X. Considering that the company is upgrading its products, servo systems, stepper motors and other products are progressing smoothly and have a strong driving force for future growth. Maintain "buy"
Rating.
Risk hints: raw material price fluctuation risk, market competition risk, exchange rate fluctuation risk.
