Performance summary: in the first half of 2021, the company achieved revenue of 770 million yuan (+ 58.9%), net profit of 60.39 million yuan (- 11.4%), and non-return net profit of 48.35 million yuan (- 25.2%). In the second quarter of 2021, the revenue was 420 million yuan (+ 65.0%), the net profit was 24.25 million yuan (- 39.3%), and the non-return net profit was 16.35 million yuan (- 57.4%).
Rapid revenue growth, rising prices of raw materials and other factors put pressure on profitability. In 2021, the Q2 overseas market continued to recover from the epidemic, and the demand for sofa putters and desk putters recovered rapidly; at the same time, the company's rear doors were rapidly released, and the scale achieved triple-digit growth. However, affected by the sharp rise in commodity material prices, sea freight, and the appreciation of the RMB against the US dollar, the company's profitability continued to decline. Q2 gross profit margin was 21.2%, down 10.4% from the same period last year, 3.9% from the previous month, and the net interest rate was 5.8%. It fell 10% from the same period last year and 4.4% from the previous year.
Desk putters and car rear doors are medium-term growth poles. The lift desk industry is still in a period of rapid growth, and the industry is expected to grow by more than 30% in the next few years, and the company's active resource allocation in this business sector has also ushered in good results: in the first half of the year, the company has successively locked two head customers overseas; the new product, children's lift learning desk putter, is expected to contribute considerable shipments next year, and its pricing and profit margin are also higher than ordinary desk putter products. The automobile rear door company aims to double its growth this year, and the business will usher in a new stage of development as the tail door business moves to a separate building in the new plant.
The third quarter is expected to usher in a profitability inflection point. The scale of the company's desk putter and car rear door business was relatively small before, but as the company's new plant was put into production and the company's capacity problem was solved, it is expected that these two businesses will accelerate growth, and scale effects are expected to begin to be reflected in the second half of the year; judging from the situation in the first half of the year, the company's car rear door business scale effect has been shown, the gross profit margin has continued to rise, and the loss has been reversed in the past two months. In addition, the company's price increases since July and the weakening upward trend in raw material prices are also expected to prompt the company to usher in an inflection point in profitability from the third quarter.
Profit forecast and investment advice. We expect the company's return net profit from 2021 to 2023 to be 1.5152.2 / 290 million yuan respectively, corresponding to PE 25-17-13 times. We are optimistic about the development potential of the company in the linear drive high-quality track and maintain the "buy" rating.
Risk hints: market competition intensifies; new product development falls short of expectations; exchange losses; upstream raw material prices rise; international shipping prices rise.
