Overview of events
The company released the three-quarter report of 2021, the first three quarters of the company achieved revenue of 226 million yuan / yoy+50.82%, return net profit of 0.43 million yuan / yoy+40.17%, deduction of non-return net profit of 0.41 million yuan / yoy+57.05%.
Analysis and judgment:
The scale of revenue is growing steadily, and the growth rate of performance is relatively high. 1) in terms of performance, company Q3 achieved revenue of 0.85 million yuan / yoy+30.95%, net profit of 0.20 million yuan / yoy+50.08%, deducting non-parent net profit of 0.19 million yuan / yoy+72.00%, with the gradual release of the company's production capacity, the performance is expected to have more room for growth. 2) in terms of profitability, the gross profit margin and net sales margin of the company in the first three quarters were 44.75% and 19.08% respectively, respectively-4.22pct/-1.45pct compared with the same period last year. The gross profit margin of Q3 was higher and the net profit rate was relatively stable. Q3 gross profit margin and net profit margin of sales in a single quarter were 47.59% and 23.32%, respectively. Compared with the previous quarter, the gross profit margin and net profit margin of the company increased significantly by 5.03pct and 6.50pct respectively. 3) in terms of expenses, the rates of sales, management, finance and R & D expenses in the first three quarters of the company were 12.81%, 3.44%,-0.25% and 8.60% respectively, which decreased slightly compared with the same period last year.
Capacity is gradually released, and the pace of revenue recognition is expected to further accelerate in Q4. The company's production capacity has been gradually released, and the capacity problem is no longer a constraint on performance growth; the company has always attached great importance to the research and development of core technologies and technological innovation, and has formed a good brand effect around the world. products are exported to the United States, Russia, South Korea, Germany, Spain and other countries and regions, overseas markets have been gradually opened, accounting for 43.78% of overseas revenue in the first half of this year. Due to repeated overseas epidemics and rising shipping freight prices in the first half of this year, affecting the company's product delivery confirmation, 21Q3 inventory reached 12.004 billion yuan / + 103.42%. As the above adverse effects fade, overseas sales revenue is expected to accelerate delivery recognition in Q4.
Equity incentive binds core talents to demonstrate long-term development confidence. On September 9, 2021, the company announced the draft restricted stock incentive plan, which intends to grant 750000 restricted shares to 69 employees at a price of 21.53 yuan per share, accounting for about 1.27% of the total share capital. The incentive targets include the company's senior managers, middle managers, core technology (business) backbone, etc., accounting for about 14.71% of the company's total employees, helping to bind core talents. Based on 2021, the growth rate of revenue or non-return net profit (excluding all equity incentive plans and employee stock ownership plan shares paid during the validity period of the company and subsidiaries) is not less than 35%, 65%, 100%, respectively. If the reserved part is granted in 2022, the reserved part of the assessment year is 2022-2023. The equity incentive scheme shows the management's confidence in the development of the company and is conducive to binding core talents.
Investment suggestion
Keeping the previous profit forecast unchanged, the company is expected to achieve a revenue of RMB 336 million in 2021-2023, an increase of 50.9%, 49.8% and 30.2% over the same period last year. The net profit of returning to the mother was 0.74 million yuan, 43.2% and 27.6% respectively, up 51.5%, 43.2% and 27.6% respectively over the same period last year, and the corresponding EPS was 1.25 pm 1.79 pm 2.29 yuan respectively. Calculated on the basis of the closing price of 32.88 yuan on October 29, 2021, the corresponding PE valuation level was respectively times that of 26-18-14. We maintain the company's "buy" rating.
Risk hint
Lower-than-expected prosperity, repeated epidemics at home and abroad, rising transportation costs, etc.
