Events:
On October 29, 2021, the company released its quarterly report for the third quarter of 2021: net profit attributable to the owner of the parent company in the first three quarters was 139 million yuan, down 39.73 percent from the same period last year; operating income was 1.334 billion yuan, up 4.6 percent from the same period last year; and basic earnings per share was 0.34 yuan, down 39.29 percent from the same period last year.
Main points of investment:
The profit is improved from the previous month, and the control of the three fees is excellent.
2021Q3, the company achieved operating income of 493 million yuan, year-on-year + 6.78%, month-on-month + 6.14%; net profit of 46 million yuan, year-on-year-45.62%, month-on-month + 31.43%. The weighted average ROE is 2.47%, the month-on-month ratio is + 0.65 pct, and the profit margin of the company is improved. The gross profit margin / net profit margin / expense rate of the company is 18.23%, 9.52%, 9.64%, respectively, and the month-on-month ratio is-3.91, 1.95 and 3.23 pct, respectively, compared with the same period last year. The rate is-16.18, 8.65 and 3.59 pct, respectively. In terms of three fees, the sales / management / financial expense rates of the company in the second quarter were 3.88%, 6.55%, 0.79%, 0.70, 0.70, 1.69, 0.84 pct, respectively. The company has excellent control of the three fees.
The capacity is constantly expanding and there is plenty of room for growth.
On July 15, 2021, the company issued an announcement on the investment and establishment of a wholly-owned subsidiary. The company plans to set up Zhejiang Taisheng Intelligent Transportation Technology Co., Ltd. in Tiantai with its own capital of 100 million yuan, which will be used to build the second production base of conveyor belt, further expand the company's main business scale and enhance its comprehensive strength. In the future, Taisheng Company will increase production, expand capacity and expand the conveyor belt industry on the roof. according to the Rubber Industry Association, the domestic conveyor belt output target of the 14th five-year Plan is as high as 810 million square meters, and the national output in 2019 is only 500 million square meters, with large increment space. The company is constantly expanding conveyor belt production capacity, currently under construction capacity of 2500 million square meters / year, respectively for the annual output of 10 million square meters of steel rope core conveyor belt project and wholly-owned subsidiary Tongxiang Desheng Belt Co., Ltd. annual output of 15 million square meters of high-strength energy-saving and environmental protection conveyor belt project. In addition, the company will increase the investment in the main industry of conveyor belt in the next few years, and on the basis of the current annual production capacity of 65 million square meters, it will exceed 150 million square meters at the end of the 14th five-year Plan. The company will quickly seize the incremental part of the industry through continuous production expansion.
With continuous breakthroughs in research and development, industry leaders are expected to further enhance their competitiveness on October 14, 2021, according to the company's website, the two technologies independently developed by the company's personnel, "a heat dissipation device for electronic and electrical equipment" and "an air cushion conveyor belt simulation tester" have been officially authorized by the national utility model patent. The company has accumulated 1 EU invention patent, 11 national invention patents and 97 utility model patents. Through the cooperation between schools and enterprises, the company has established a provincial enterprise technology center and participated in editing industry standards. We are optimistic about the breakthrough in technological research and development of the company as a leader in the conveyor belt industry.
Profit forecast and investment rating: we believe that the company is the leader of the domestic conveyor belt industry, the capacity continues to expand and gradually reach production, optimistic about the company's long-term development. It is estimated that the annual net profit of homing in 2021-22-23 will be 3.440.44 billion yuan respectively, corresponding to EPS 0.88 billion yuan, corresponding to PE 1.07 times that of 15-9-7, maintaining the "buy" rating.
Risk tips: raw material price fluctuation risk; product demand is not as expected; project construction progress is not as expected.
