Event: the company released its semi-annual report for 2021, with revenue of 280 million yuan in the first half of the year, down 27.45% from the same period last year, and net profit of 38.54 million yuan, down 45.8% from the same period last year. The decline in revenue and performance is (1) the worldwide shortage of automotive chips has led to a decline in the production of the whole car factory, resulting in a decrease in the sales volume of the company's auto parts business, and (2) the business production cycle of flexible automation equipment and industrial robot systems is relatively long. Order improvement has not yet been translated into an increase in output value.
In the first half of the year, our department is full of orders, expanding new areas and new products. According to the semi-annual report, new orders signed by the headquarters in the first half of the year totaled 255 million yuan, an increase of 85 percent over the same period last year. By the end of the first half of the year, the company's inventory and contract liabilities were 119 million yuan and 17.64 million yuan respectively, an increase of 23% and 70% respectively over the end of the first quarter, confirming that orders were booming. Our orders have improved significantly since Q3 last year and are expected to be gradually converted into income from the second half of this year. The company seizes the opportunity of automobile electrification and intelligence to successfully develop various specifications of automotive motor stator and rotor complete process equipment, IGBT module packaging and testing equipment, etc., at the same time, it is also actively developing new energy vehicle flat line motor automatic assembly technology, hydrogen fuel cell dynamic stack testing technology, etc., to further open up the space for growth.
Shanghai Zhongyuan has strong technical strength and increases the research and development of other parts of the carbon dioxide system. The company's carbon dioxide high pressure pipeline has passed the experimental certification of Volkswagen MEB and entered the stage of pre-mass production and supply. at the same time, the company is also actively carrying out R & D and testing with other mainstream new energy vehicle companies.
The company will also actively increase the research and development of other categories of carbon dioxide thermal management systems, including electronic expansion valves, globe valves, pressure relief valves, etc., and continue to import and replace them.
Profit forecast and investment advice: from 2021 to 2023, the company's operating income is expected to be 765 million yuan, 1.04 billion yuan and 1.337 billion yuan respectively, and the net profit of returning mother is 156 million yuan, 223 million yuan and 278 million yuan respectively, corresponding to 0.60,0.85 and 1.06yuan respectively, maintaining the "buy" rating.
Risk hint: chip supply affects automobile sales, and competition in the industry intensifies.