Revenue in the first three quarters of 2021 increased by 15.34% compared with the same period last year, and net profit from home increased by 28.67% compared with the same period last year. In the first three quarters of 2021, the company achieved revenue of 787 million yuan, an increase of 15.34% over the same period last year; a comprehensive gross profit margin of 54.64%, a decrease of 0.23 pct over the same period last year; and a net profit of 328 million yuan, an increase of 28.67% over the same period last year. We believe that the company's return net profit growth rate is higher than the income growth rate is mainly due to the investment income of 34 million yuan in the first three quarters of 2021 and 1 million yuan in the first three quarters of 2020.
Rates increased during the first three quarters of 2021 compared with the same period last year. In the first three quarters of 2021, the rate for the company period was 14.25%, an increase of 0.75pct over the same period last year. The financial rate decreased, while the sales rate, management rate and R & D rate increased in varying degrees.
Specifically:
(1) the sales rate is 5.13%, an increase of 0.84pct over the same period last year. (2) the management fee is 4.79%, an increase of 0.32pct over the same period last year.
(3) the financial rate is-0.32%, a decrease of 0.94pct compared with the same period last year. (4) R & D fee 4.65%, year-on-year increase 0.53pct revenue in the third quarter of 2021 increased by 11.12% year-on-year, and home net profit increased by 24.80% year-on-year. In the third quarter of 2021, the company achieved revenue of 314 million yuan, an increase of 11.12% over the same period last year; a comprehensive gross profit margin of 52.90%, down 3.27pct from the same period last year; and a net profit of 119 million yuan, an increase of 24.80% over the same period last year.
Rates decreased during the third quarter of 2021 compared with the same period last year. In the third quarter of 2021, the company's period rate was 11.83%, a year-on-year drop of 0.73pct. Financial rates and R & D rates have decreased, while sales rates and management rates have increased.
Specifically:
(1) the sales rate is 4.53%, an increase of 0.09pct over the same period last year. (2) the management fee is 4.07%, an increase of 0.46pct over the same period last year.
(3) the financial rate is-0.23%, a decrease of 0.78pct compared with the same period last year. (4) the R & D rate is 3.45%, which is lower than the same period last year by 0.49pct.
The primary and secondary integration of equipment to solve the pain points of power grid operation, driving the rapid growth of the company's business volume. At present, there are some problems in the maintenance of distribution network in our country, such as "difficulty in fault research and judgment" and "high risk for operators". It is urgent to deal with faults accurately, quickly and efficiently. The company's main products, the primary and secondary intelligent on-column switches, rely on their remarkable advantages in fault research, performance parameters, safety and reliability, etc., the income continues to grow rapidly, and maintains a high gross profit margin, and the market share is in the forefront of the industry.
The expansion outside Zhejiang Province continues to land, and the intelligent ring network cabinet enriches the company's primary and secondary product layout. Since the beginning of this year, in addition to Zhejiang, the company has more products put into operation in Jiangsu, Shandong, Henan, Shaanxi and Fujian.
At the same time, the company's intelligent ring network cabinet is verified by the supplier qualification capability of the national network, and the 10kV post circuit breaker is verified by the supplier qualification capability information of the southern network, which meets the corresponding qualification requirements for subsequent market expansion to the whole country.
Profit forecast and valuation. We expect the company to make a net profit of 411 million yuan, 529 million yuan and 681 million yuan from 2021 to 2023. The corresponding EPS is 4.11,5.29,6.81yuan respectively. Based on the valuation level of the same industry, as well as the growth of the company itself, the continuous landing of the intelligent switch on the pillar outside Zhejiang Province, and the expansion of the business layout of the intelligent ring cabinet. Give the company 2022 PE25-30X, corresponding to the reasonable value range of 132.25-158.7 yuan. Maintain the "better than the market" rating.
Risk hint: the progress of the promotion of the intelligent pole switch in the power grid is lower than expected, and the business development progress of the company's intelligent ring cabinet is lower than expected.