The company's profit increased significantly, the electromagnetic wire business fully benefited from the electric vehicle flat-line trend, the revenue in 2021 was 12.832 billion yuan, + 64.60% compared with the same period last year, and the net profit was 331 million yuan, + 32.6% year-on-year, of which the net profit of the main wire and cable plate was 321 million yuan. + 51.5% year-on-year, the net profit of electromagnetic wire plate was 153 million yuan, + 58.53%. Q4 in 2021: operating income is 3.516 billion yuan, + 35.20% compared with the same period last year.
The sales volume of the company's cable products grew steadily, and the sales volume of electromagnetic wire products increased significantly, which was + 117.33% compared with the same period last year, which was higher than the growth rate of the industry as a whole. After deducting the impact of asset impairment losses, the company's profitability continues to improve. We raise the 2023 earnings forecast and increase the 2024 profit forecast. It is estimated that the company's 2022-2024 net profit is expected to reach 5.25,0.19,06.06 (+ 1.12) / 901 million yuan, the EPS is 0.71 million 0.96 plus 1.23 yuan per share, and the current share price corresponds to a price-to-earnings ratio of 10.0cyan7.55.8 times, maintaining the "buy" rating.
The company's strategy "endogenous extension" promotes the further expansion of the business scale: the technical transformation, expansion and quality improvement of the main industry of cables is carried out in an orderly manner, and Jinbei Tower Brand is fully put into production in August 2021, with an additional production capacity of 2.25 billion yuan; Wuhan Business Department will form a production capacity of 5 billion yuan by 2023; Hengyang Division will upgrade the production capacity of high-voltage cross-linked cables and will increase production capacity by 855 million yuan. Extension: the company continues to expand through acquisitions and mergers. After the merger and acquisition of Hengyang Cable Factory, Tacai Cable, Wuhan second Line and Unification Electric, the company has established Jinbei Ganchang Cable in a joint venture with South Cable Group. In the future, mergers and acquisitions in the field of electromagnetic lines will increase the vertical and horizontal integrated layout, and the field of wires and cables will take regional enterprises as the main target, continue the pace of mergers and acquisitions, and expand the business territory.
Electric vehicle flat line accelerates production expansion, and has strong technical research and development strength.
Electric vehicle flat line accelerated production expansion: the current annual production capacity is 7000 tons, after the completion of the second phase, the production capacity is increased to 25000 tons, and the completion time is expected to be advanced to December 2022. Leading in the technology R & D industry: the company spent 435 million yuan on R & D in 2021, + 70.83% compared with the same period last year. Based on the mainstream enamelled flat wire, the company expanded the two insulation structures of enamelled + membrane and enamelled + pack. High-end flat wire products can be applied to 400vgine 800v new energy vehicle motor, 1000kv ultra-high voltage field, the processing cost is much higher than ordinary flat wire. Electromagnetic wire has a wide range of applications, including power transmission and transformation (including UHV), wind turbines, photovoltaic inverters, Xineng vehicle motors, etc., and the product structure can be quickly adjusted to maintain strong profitability.
Risk hint: the competition pattern of the industry is deteriorating, and the permeability of flat line motor is not up to expectation.