I. Overview of events
On October 26, the company released its third-quarter report that in the first-third quarter of 21, the company realized revenue of 787 million yuan, an increase of 15.34% over the same period last year; net profit of 328 million yuan, an increase of 28.67% over the same period last year; and deduction of non-net profit of 267 million yuan, an increase of 6.55% over the same period last year. If the VAT rebate of software companies is not taken into account, the net profit deducted from non-return is about 20% over the same period last year. Of this total, 2021Q3 achieved revenue of 314 million yuan in a single quarter, an increase of 11.12% over the same period last year, a net profit of 119 million yuan, an increase of 24.80% over the same period last year, and a non-net profit of 105 million yuan, an increase of 11.49% over the same period last year. The company in Q3 affected by the epidemic in Jiangsu market, delivery has been delayed, revenue and net profit growth has declined.
II. Analysis and judgment
The trend of intelligence is remarkable, and the core products are developing rapidly.
In the long run, structural transformation is the trend of power grid investment. With the gradual increase in the proportion of distribution terminal investment, the proportion of investment in the field of information and intelligence related to the construction of the Internet of things based on power will also increase significantly. In the first three quarters of 2021, the company expanded its market steadily and achieved a great increase in revenue from its main products. The company radiates advantageous areas, and continues to develop in various provinces, and more products are put into operation in Zhejiang, Shandong, Henan and other provinces; on this basis, the company's first and second integration of intelligent post switches with product advantages to achieve high-speed development.
Attach great importance to product research and development and highlight the competitive advantage of technology
The company's Q3 R & D investment totaled 36.58 million yuan, an increase of 30.31% over the same period last year, and R & D investment accounted for 4.65% of revenue, an increase of 0.53% over the same period last year. The company has increased its investment in intelligent sensing, edge computing and industrial integration technology of the Internet of things, and has formed a complete product line that deeply integrates intelligent on-post switches for the first and second times. The core products have competitive advantages in the aspects of materialization, intelligence and integration. The accuracy of short-circuit fault research and diagnosis is more than 99%, that of single-phase ground fault is 90%, and that of reclosing is close to 100%. Can adapt to 20kV and other voltage levels and Beidou, 5G communications and other application scenarios. In addition, the company has strengthened its in-depth research on a number of cutting-edge technologies, focusing on the research and development of intelligent fault monitoring equipment and platforms for distribution networks, the primary and secondary deep integration of intelligent switchgear and primary and secondary integrated ring network cabinets, and so on.
III. Investment suggestions
We estimate that the company's revenue from 2021 to 2023 will be 10.94,14.56 and 1.941 billion yuan respectively, with a growth rate of 20%, 33% and 33% respectively, and the return net profit will be 4.0,5.3 and 680 million yuan respectively, with a growth rate of 27%, 31% and 29% respectively, and the corresponding PE will be 24,18 and 14 times respectively. The company's regional market development is accelerated, with reference to the ZX electrical equipment plate 41 times the PE level (TTM,Wind consistent profit forecast), to maintain the "recommended" rating.
Fourth, risk tips:
Downstream demand is not as expected, the company's new production capacity is not as expected, the company's customer progress is not as expected, and so on.
