Events:
In the first three quarters, the company achieved revenue of 1.536 billion yuan, an increase of 73.67% over the same period last year, a net profit of 182 million yuan, an increase of 475.23% over the same period last year, and a non-net profit of 58 million yuan, an increase of 177.08% over the same period last year. Revenue in the third quarter reached 632 million yuan, up 79.73 percent over the same period last year; net profit returned to home was 40 million yuan, up 142.07 percent over the same period last year; and 36 million yuan was deducted from non-net profit, an increase of 175.34 percent over the same period last year.
Main points of investment:
The high performance increase is in line with expectations, and the profitability has improved significantly.
The company's performance is growing rapidly, slightly higher than the median of the performance forecast, basically in line with expectations. The increase in revenue was mainly due to a 97.76% year-on-year increase in revenue from energy products, including high-frequency inductors for inverters and photovoltaic step-up transformers. The company's Q3 single-quarter gross profit margin was 17.96%, a significant increase of 2.95 percentage points compared with Q2; the company's Q3 net profit margin was 6.30%, up 2.28% from 4.02% in the second quarter; with the decline in the price of major raw materials such as copper and silicon steel, the company's profitability is expected to continue to improve.
The fund-raising project "photovoltaic grid-connected equipment" starts construction, and it is optimistic that the future capacity release company's non-public offering fund-raising project "photovoltaic grid-connected equipment intelligent manufacturing project" has an investment of 386 million yuan, and construction has already started. The company is currently under construction of 18.25 million yuan, which is expected to contribute to the performance in 2022. After the project reaches full production, the company's annual operating income is expected to increase by 799 million yuan. The company's photovoltaic grid-connected transformer products began to expand this year, and in the future, with the release of the production capacity of the investment project, it will become an important driver of the company's performance growth.
Earnings forecast, valuation and rating
The company's performance is growing rapidly, production capacity continues to expand, profitability is improved, and the company maintains its profit forecast for 2021-2023, with a corresponding EPS of 0.74,0.78,1.13 yuan per share and a corresponding PE of 33,32 and 22 times respectively, maintaining a "buy" rating.
Risk hint
Systemic risk; intensified market competition; fluctuation of raw material prices.