Event
The company released its annual results KuaiBao, with an annual operating income of 1.615 billion yuan, an increase of 16.53% over the same period last year, and a net profit of 122 million yuan, an increase of 0.81% over the same period last year. The net profit after deducting non-return was 90 million yuan, down 19.9% from the same period last year. On the same day, the company announced the announcement on adjusting the plan of non-public offering A shares (second revised version). It is further made clear that the final number of subscription shares invested in Quanfeng China is not less than 15% (inclusive) of the actual number of non-public offerings, no more than 30% (inclusive) of the actual number of non-public offerings, and no more than 10% (inclusive) of the company's total share capital after the completion of this offering.
Brief comment
Year-on-year revenue increased by 16.15% over the same period last year, with a high proportion of major shareholders subscribing for an increase. In 2021, the company's revenue, net profit and net profit after deducting non-return were 16.15,1.22 and 90 million yuan respectively, which were + 16.15%,-0.81% and-19.9% respectively compared with the same period last year. Benefiting from the advance layout in the field of new energy and the improvement of market penetration of transmission business, the company's revenue side has grown rapidly and its business structure has been significantly optimized, with sales revenue of new energy business and transmission business being + 43.25% and + 36.09%, respectively, compared with the same period last year. In 2021, the rising prices of raw materials, sea freight and power production in September and October lead to the pressure on the profit end, and the pressure on Q3 and Q4 is more obvious.
By the end of 2021, Shanghai aluminum prices rose 57.79% from the beginning of the year, reaching a high of 23300 yuan / ton in the second half of the year. The CICFI maritime composite index reached 1429.63 points at the end of the year, up 45.82 per cent from the beginning of the year. The company's aluminum die-casting products have global competitiveness, directly supply Valeo, ZF and other international giants, overseas customers account for 26.4%, the cost side is subject to rising sea freight and RMB appreciation. From a quarterly point of view, Q4's revenue, net profit and net profit after deducting non-return are 4.26,0.11 and 10 million yuan respectively, which are-10.44%,-80.71% and-82.22% compared with the same period last year, and the month-on-month changes are + 12.20%,-65.34% and-52.61%, respectively. The company once again revised the fixed increase plan, and on the basis of the previous version of the plan, further made it clear that the final number of shares subscribed by Quanfeng China Investment is not less than 15% (inclusive) of the actual number of non-public offerings, and not more than 30% (inclusive) of the actual number of non-public offerings. A high proportion of major shareholders subscribe for an increase, demonstrating their confidence in the company's long-term development.
The company is full of orders on hand and looks forward to the release of production capacity. The company is a domestic high-quality aluminum die-casting enterprise, deeply ploughing new energy for many years, and has a strong competitiveness in the field of "Big three electricity". Customers cover well-known Tier 1 and main engine factories at home and abroad, with full orders on hand. In 2021, the company successively won the project assignments of well-known Tier1 manufacturers such as Zaifu and Valeo, and won new orders directly supplied by head mainframe factories such as BYD and the Great Wall. It is expected that the proportion of the company's new energy business will further increase to 40% in 2022. Subject to delivery bottlenecks, the company accelerated the construction of the factory. Substantial progress has been made, with total assets increasing by 56.41% in 2021 compared with the same period last year. The company takes the Nanjing headquarters as the core, arranges a comprehensive large-scale production base, and on this basis promotes the construction of new factories in Maanshan and Hungary, all of which are expected to increase the annual output value by 9.16 or 395 million yuan. The Maanshan plant started production climbing in March this year, and the European plant is expected to start production in the second half of this year. With the gradual release of new capacity, the company is expected to usher in performance repair in Q2. In terms of integrated die casting, the company has actively arranged in line with the development trend of the industry. Nanjing factory has realized the batch supply of 5000t integrated die casting orders. 6000t and 8000t die casting machines will be in place in the second half of this year to promote the upgrading of the company's products.
Investment suggestion
Aluminum die-casting industry has become a high-growth track of "volume and price rising" under the rapid development of the new energy industry, subject to capacity bottlenecks and rising aluminum prices, the company's performance and stock price are under short-term pressure. With the gradual release of new Q2 production capacity and the easing of the conflict between Russia and Ukraine, commodity prices have fallen. We are firmly optimistic about the company's medium-and long-term growth and business expansion ability. It is estimated that the company's net profit from 2022 to 2023 will be 1.9 million yuan and 400 million yuan respectively, and the corresponding share price PE will be 26x and 12X respectively. Give a "buy" rating.
Risk hint
(1) the risk of the sales of new energy vehicles falling short of expectations; (2) the risk of the impact of COVID-19 's epidemic situation exceeding expectations; (3) the risk of chip supply shortage aggravating the risk; (4) the risk of rising prices of raw materials such as aluminum alloy; and (5) the risk of factory construction falling short of expectations in Anhui and Europe.
