Event
On March 10, the company released a 1 billion increase plan: 500 million will be invested in the intelligent manufacturing base of Shunde high-end furniture equipment, 400 million will be invested in the construction project of furniture robot automatic production line manufacturing base, and the rest will be used to supplement working capital. Among them, Chairman Li Maohong plans to subscribe for 150 million-400 million yuan.
Main points of investment
The company issued a 1 billion plan to expand the scale advantage of Shunde manufacturing base through intelligent transformation: it is mainly used to build intelligent production lines such as five-axis machining centers, automatic flexible wooden doors and wooden windows with international leading technological level and competitiveness. in the future, we will further increase capital and expand capacity, and create an industrial agglomeration area for high-end woodworking equipment. After the completion of the project, it is expected to achieve an annual production capacity of 10,000 sets of cutting board saws, CNC drills and other high-end furniture manufacturing equipment.
Robot automatic production line: we plan to purchase advanced intelligent numerical control equipment, introduce robot application system integration technology, and strive to build an advanced automatic and flexible intelligent manufacturing production line. further improve the company's core components self-made and CNC furniture equipment production and other aspects of intelligent manufacturing level. After the completion of the project, it is expected to achieve an annual production capacity of 20,000 sets of intelligent edge sealing machines and their automatic production lines and other high-end furniture equipment.
The company's production capacity continues to increase market share; the overseas market is expected to become a strong growth point in the future as the company's production capacity climbs smoothly and the order scheduling cycle returns to the normal level. After the Masters project reaches production, the company's production capacity will reach about 2.5 billion yuan; the subsidiary Dan Tooth Seiko Phase I plant has been landed and will further coordinate to improve production efficiency; Foshan Shunde manufacturing base is expected to enter production in 2023, and 2.5 billion incremental production capacity is expected to be released after full delivery; new land in Zengcheng, Guangdong, is expected to further promote production expansion, and the market share is expected to further increase.
With the gradual unsealing of overseas countries and the resumption of growth in foreign market demand, the company's export orders grew by more than 80% in the first three quarters. The company's sales team in Russia and Ukraine achieved revenue of more than 90 million yuan in the first three quarters and is expected to achieve more than 100 million yuan in 2021. The company actively arranges European and American channels and expands the space of overseas markets, which is expected to become a new growth point in the future.
The completion of real estate construction is expected to usher in the inflection point of recovery, the marginal improvement of demand in the industrial chain, the marginal improvement of credit after the central bank cut the reserve requirement, and the strictest period of real estate loan policy has passed. Mortgage lending is expected to increase, housing demand will be released, and residential sales and completed area are expected to start a new round of growth. The furniture industry has the property of post-cycle of real estate, and the recovery of real estate completion will drive the prosperity of the furniture industry upward, which is conducive to the improvement of investment demand for panel furniture machinery.
Profit forecast and valuation
It is estimated that the income from 2021 to 2023 will be 24,31 and 4 billion yuan, an increase of 42% over the same period last year, 30% and 28% over the same period last year; the net profit of return to the mother is 5.4,6.8 and 870 million yuan, an increase of 52%, 27% and 27%, respectively; corresponding to the current PE of 14-11-9, the "Buy" rating is maintained.
Risk hint
The growth rate of macroeconomic and manufacturing investment is lower than expected; the price of raw materials fluctuates sharply; the competition pattern of the industry deteriorates.