New energy sanitation equipment leader; maintain "increase"
In 2021, Yutong heavy Industries achieved a revenue / return net profit of 3757 million yuan, 33.6% compared with the same period last year.
The return net profit is basically in line with Huatai's expectation (Huatai's expectation: 389 million yuan). The company's sales of sanitation equipment are growing rapidly, and the number of new energy sanitation vehicles ranks first in the industry. In addition, the annual contract amount of the new winning contract for the company's sanitation service project was 191 million yuan, an increase of 198% over the same period last year. Due to the fact that the sales volume of sanitation equipment is lower than we expected, the competition in the construction machinery industry intensifies, and the repeated epidemic situation of COVID-19 is superimposed, we reduce the income of sanitation equipment and construction machinery, and then reduce the forecast of 2022-2023 net profit to 412 million yuan (the former value: 493 million yuan), and introduce the forecast of return net profit of 621 million yuan in 2024. Considering that the company's new energy sanitation business accounts for a high proportion of revenue, strong profitability, and new energy sanitation vehicle sales continue to lead the industry, give 2022 15xPE (comparable company Wind consensus forecast 2022E PE average 10.1x), target price 11.40 yuan (previous value: 15.12 yuan), maintain "increase".
Sanitation equipment is expected to expand competitive advantage
According to the retail data of China Automotive data Terminal, 102000 sanitation vehicles were insured nationwide in 2021,-11.4% compared with the same period last year. The company achieved sales of 4450 sets of sanitation equipment, + 64.2% year-on-year, of which 1278 units of new energy sanitation equipment were sold, + 41.84% year-on-year. Yutong heavy Industry has focused on the R & D and production of new energy sanitation vehicles since 2017, and its sales have been among the top three in China since 2017. in 2021, the company has insured 1156 new energy sanitation vehicles, with a market share of 28.5%, ranking first in the industry. and the number of new energy sanitation vehicles ranks first in the industry since 2014. We are optimistic that Yutong heavy Industry will continue to expand its competitive advantage under the wave of new sanitation energy by virtue of its excellent technology and quality control capabilities, strong sales and after-sales network.
Sanitation services continue to grow with high quality
The company's sanitation service project operation is mainly carried out by the subsidiary Aolande Environmental Technology Co., Ltd. (Aolande), covering road cleaning and cleaning, garbage collection and transportation, municipal facilities management and landscaping maintenance and other residential environment management services. The annual value of the Aolan bid-winning project in 2021 was 191 million yuan. By the end of 2021, the annual value of sanitation service projects in operation reached 760 million (including value-added tax), an increase of 20.4% over the end of 2020. It has been rated as the "most growing sanitation service enterprise" by E20 environmental platform for five consecutive years.
Construction Machinery seeks New Energy Breakthrough
Affected by the decline of the domestic real estate industry, the slowdown of fixed asset investment and other factors, the cycle of the construction machinery industry has declined, and the company's product sales have been affected to a certain extent. In 2021, the revenue of construction machinery was 1.349 billion yuan,-7.9% compared with the same period last year. The company has increased investment in product iterative upgrading and new product research and development. New energy rotary drilling products and new energy mining vehicles have rapidly formed a number of market breakthroughs, leading the construction machinery business to new energy development.
Risk hint: the sales demand of sanitation equipment is lower than expected, the progress of sanitation marketization is not as expected, the competition of sanitation operation is intensified, and the macroeconomic growth rate is lower than expected.