Events:
The company announced the third quarterly report of 2021: in the first three quarters of 2021, the company realized revenue of 317 million yuan, up 115.83 percent over the same period last year; realized return net profit of 57.38 million yuan, up 395.74 percent over the same period last year; and realized deduction of 50.68 million yuan of non-return net profit, an increase of 1164.42 percent over the same period last year.
Comments:
1. The performance is in line with expectations, and Q3 has a high revenue growth in a single quarter.
The company's Q3 revenue in a single quarter was 99.67 million yuan, up 60.41% over the same period last year; the net profit returned to the mother was 13.25 million yuan, down 19.88% from the same period last year; and 12.21 million yuan was deducted from the non-return net profit, an increase of 34.72% over the same period last year.
The company's income maintained high growth in the third quarter, and the year-on-year decline in 2021Q3's single-quarter net profit was mainly due to the decrease in investment income from securities investment and financial management. the company's investment income in the single quarter of 2021Q3 was 330000 yuan, compared with 5.41 million yuan in the same period in 2020.
2. Nanjing opening has an impact on gross profit margin, and the company's R & D expenditure rate is close to 20% gross profit margin. In the first three quarters of 2021, the company's gross profit margin was 54.34%, down 8.83pct from the same period last year. The decline in gross profit margin was mainly due to the increase in the price of raw materials such as chips and the adjustment of the company's business structure. Q3 single-quarter gross profit margin was 52.28%, with a month-on-month decline in 1.8pct. In terms of expenses, the overall expense rate of the company in the first three quarters of 2021 was 36.02%, of which the sales expense rate was 6.31%, the management expense rate was 9.77%, and the R & D expense rate was 19.98%.
3. Laser cutting customers continue to expand, the share continues to increase
Benefiting from the strong demand for processing all kinds of metal and non-metal parts, the market of laser processing equipment has continued to grow in recent years. We estimate that the market size of laser cutting control system is 1.342 billion yuan in 2020, and it is expected to reach 3.723 billion yuan in 2025. In the field of laser cutting control system, the company has made differentiated products through in-depth cooperation with head customers, and achieved results in product research and development and customer development in 2021. The market share of medium and low power has increased to about 20% of the 10-20 MW high-power products, and the company's Q3 single-quarter revenue has increased year-on-year. In addition to Nanjing opening and table factors, we believe that the expansion of the company's laser customers is also an important reason.
Profit forecast and investment advice: we maintain our previous profit forecast. We expect the company's revenue from 2021 to 2023 to be 439 yuan, 615 pounds, 819 million yuan, respectively, and its net profit is 1.68 billion yuan, respectively, corresponding to the current market value of 42.04 pounds, 25.13 pounds, 18.69 times, maintaining the "buy" rating.
Risk hints: the industry boom is not as good as expected; laser cutting product research and development and customer expansion are not as expected; industry competition is intensified; forecasting assumptions are subjective; systemic risk.